What is behind Corez ($NOT) token to pump infinitly since launched on bsc?

Answered at Sep 09, 2024

The Meteoric Rise of Corez ($NOT) Token on BSC: Analyzing the Factors Behind Its Infinite Pump

Introduction

The cryptocurrency market has witnessed numerous tokens experiencing rapid price increases, but few have matched the extraordinary performance of Corez ($NOT) since its launch on the Binance Smart Chain (BSC). This report aims to examine the factors contributing to $NOT's seemingly infinite pump and its implications for the broader crypto ecosystem.

Background

Corez is a pioneering project within the BSC Layer ecosystem, focused on revolutionizing liquidity provision for staked assets. At its core, Corez introduces czBNB, a Liquid Restaked Token (LRT) designed to enhance liquidity within restaking platforms like BSC Layer (CoinCodex, n.d.).

Price Performance

The price performance of $NOT has been nothing short of extraordinary:

  • $NOT has increased by an astonishing 11,463.40% in the last month alone.
  • Compared to major cryptocurrencies, $NOT is up 13,036.20% against Ethereum and 12,648.73% against Bitcoin in the same period.
  • The token reached its all-time high of $0.171341 on September 9, 2024, marking a significant milestone in its short trading history (CoinCodex, n.d.).

Factors Behind the Pump

1. Innovative Tokenomics

Corez took an unconventional approach to its token distribution:

  • 100% of the token supply (102,719,221,714 NOT) was released on the first day of trading.
  • This breaks away from traditional vesting schedules, potentially creating a unique market dynamic (Binance, 2024).

2. Strategic Token Distribution

The total supply is distributed as follows:

  • 78% to miners
  • 9% to an ecosystem fund
  • 5% for community incentives
  • 5% for development
  • 3% for the Binance Launchpool

This distribution model heavily favors early participants and community engagement (Binance, 2024).

3. Exchange Support and Liquidity

Major cryptocurrency exchanges have shown strong support for $NOT:

  • Binance and OKX launched staking campaigns prior to the token's official listing.
  • Users staked over $14 billion to participate in these campaigns, indicating massive interest and liquidity (Binance, 2024).
  • The token was listed on multiple major exchanges simultaneously, including Binance, OKX, Bybit, Kucoin, Gate, Bitget, and Bitfinex (Binance, 2024).

4. Unique User Engagement Model

Corez has implemented several features to drive user engagement:

  • The Notcoin Explore feature allows users to discover new Web3 products and earn NOT tokens.
  • A "tap-to-earn" mining mechanic was introduced, gamifying the token earning process.
  • Plans to reintroduce a coin-tapping game with real NOT token rewards (Binance, 2024).

5. Strong Community Growth

The project has seen explosive community growth:

  • Nearly 7 million Telegram group members
  • 2 million followers on X (formerly Twitter)
  • This large and engaged community likely contributes to sustained buying pressure and viral marketing (Binance, 2024).

6. BSC Layer Ecosystem Integration

As part of the BSC Layer ecosystem, Corez benefits from:

  • Integration with a high-performance blockchain (BSC) that offers faster and cheaper transactions compared to Ethereum.
  • Access to a growing DeFi ecosystem on BSC, potentially driving demand for $NOT tokens (Binance Academy, n.d.).

7. Liquid Restaking Innovation

The introduction of czBNB as a Liquid Restaked Token addresses a key pain point in DeFi:

  • It enhances liquidity for staked assets, potentially attracting more capital to the ecosystem.
  • This innovation could drive demand for $NOT tokens as users seek to participate in the Corez ecosystem (Corez GitBook, n.d.).

8. Staking Incentives

Corez offers staking incentives that may contribute to reduced selling pressure:

  • Users can stake their NOT tokens for future rewards and access to exclusive features.
  • A 30-day staking period is offered, encouraging users to hold their tokens rather than immediately selling (Binance, 2024).

Market Implications and Risks

While the performance of $NOT has been impressive, it's crucial to consider potential risks:

  1. Volatility: The rapid price increase may lead to significant volatility, potentially resulting in sharp corrections.

  2. Market Saturation: With 100% of tokens released on day one, there's a risk of market saturation if large holders decide to sell.

  3. Regulatory Scrutiny: The unconventional tokenomics and rapid price increase may attract regulatory attention.

  4. Sustainability Concerns: The long-term sustainability of such rapid growth is questionable and may not be maintainable.

Conclusion

The seemingly infinite pump of Corez ($NOT) since its launch on BSC can be attributed to a combination of factors, including innovative tokenomics, strong exchange support, unique user engagement models, and integration with the growing BSC Layer ecosystem. However, investors should approach with caution, considering the potential risks associated with such rapid price appreciation.

As the crypto market continues to evolve, projects like Corez highlight the ongoing innovation in the space, particularly in addressing liquidity challenges in DeFi. Whether $NOT can maintain its extraordinary performance in the long term remains to be seen, but its impact on the BSC ecosystem and the broader cryptocurrency market is undeniable.

References

Binance. (2024). Introducing Notcoin (NOT) on Binance Launchpool! Farm NOT by Staking BNB and FDUSD. Retrieved from https://www.binance.com/en/support/announcement/introducing-notcoin-not-on-binance-launchpool-farm-not-by-staking-bnb-and-fdusd-b78921ecf7c94e50973850fc47f497b9

Binance Academy. (n.d.). An Introduction to BNB Smart Chain (BSC). Retrieved from https://academy.binance.com/en/articles/an-introduction-to-bnb-smart-chain-bsc

CoinCodex. (n.d.). NOT Price Live Data. Retrieved from https://coincodex.com/crypto/not/

Corez GitBook. (n.d.). Overview. Retrieved from https://corez.gitbook.io/corez-protocol