Trading The Seasons — How One Crypto Project Attempts To Create Predictable Returns For Traders

With the recent collapse of FTX – and its token FTT/USD – the crypto world has once again been shaken. FTX was one of the largest and most high-profile companies in the space and, until a few weeks ago, was seen by most as an extremely safe place to park their money.

They were wrong.

And this is just the latest in a string of crypto projects that have failed, whether it be due to flawed design or fraud. Crypto investors are spooked and rightly so. The cryptocurrency market has had to contend with not only these endemic issues but with the larger macro environment – one marked by a collective fear of the possibility of an impending recession. Bitcoin BTC/USD and Ethereum ETH/USD are both down over 60% from their values this time last year.

Many are looking for alternatives - a unique and innovative project that reimagines what crypto can provide. One such project, Seasonal Tokens – made up of the individual tokens SPRING/USD, SUMMER/USD, AUTUMN/USD, and WINTER/USD – has attempted to create an ecosystem in which traders can more predictably add value to their portfolios. 

It does this by changing the mining difficulty of each token over time. Just as Bitcoin’s “halving” almost invariably leads to a surge in the coin’s value, Seasonal Tokens employs this mechanism to shift the relative values of the four tokens. As this happens, investors will be able to trade between the seasons and continually grow the amount of each they own.

And thus far, it seems to be working. This system was created on a hypothesis, but the data so far indicates it was a correct one. SPRING underwent a “halving,” and over the course of a few months, the relative prices shifted about 1% a day to create a new balance between the four tokens.

With this data, Seasonal Tokens has been able to create a simulator that can now be found on the Seasonal Tokens website. The simulator uses the real-world data collected so far to allow users to “game” out scenarios. Users can input different trades as future halvings occur and watch as the value of their total holding changes. The simulator gives users a chance to explore the mechanisms that make the project tick inside and out.

If you are interested in using this simulator or learning more about the project, check out seasonaltokens.org.

Featured Photo by Jeremy Bishop on Unsplash

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