The Ups & Downs Of DePIN
One of the most alluring attractions of the DePIN sector is the potential for passive income. In most cases, simply downloading a dApp or browser extension is sufficient. Mobile applications are likely to require a daily visit or two. However, browser extensions mine points in the background, provided the device is operational. These points contribute to regular airdrop allocations, which typically occur at multi-month intervals.
This, unfortunately, is one of the downsides of DePIN. Waiting four to nine months to realize earnings can be frustrating. However, the upside is that this provides a nice lump sum, and if you are utilizing multiple DePIN applications and protocols, you simultaneously increase the frequency of your payouts. There are, however, DePIN projects that enable users to withdraw earnings as they are earned, as well as on a monthly basis.
This is where Silencio comes into the picture. The initial Silencio airdrop occurred several months ago, and I must admit that I missed out on maximizing this opportunity. Had I been more focused on recording noise pollution, I could have earned a much larger airdrop. However, earning SLC tokens remains possible through the current monthly raffle system. Users earn tickets by recording noise pollution, which are then converted to SLC at the beginning of each month.
Additionally, free daily raffle tickets are available each day for simply using the application. It is worth noting that Silencio’s SLC token is currently trading on major exchanges, including Gate.io. I recently decided to increase my recording sessions, as it’s as simple as activating a recording on my smartphone and letting it run. Noise recordings cannot exceed 30 minutes per session. However, they can be shorter.
So Why Could Silencio Be A Little Gold Mine?
Firstly, Silencio is a Peaq-based project, which is a leading Layer 1 DePIN-focused blockchain. Secondly, unlike many other DePIN projects, it’s pretty unique regarding its purpose and functionality. Ever since Grass launched, the market has been flooded with bandwidth-sharing and AI applications. Silencio stands out from the crowd for good reasons, and that is always important. If you are looking to try Silencio, use the code CoinCollector for an additional bonus.
My primary motivation, however, is the market capitalization of Silencio and its potential upside. Yes, altcoins are still carrying the burden, awaiting a fresh Altcoin Season to alleviate and unburden their price action. Considering that Silencio is an operational project with a practical and much-needed use case, the current market cap has enormous upside potential. The current market cap of Silencio’s SLC token is only $1.7 million.
Silencio at a market cap of $10 million to $20 million would easily be within the realm of possibilities, never mind a blow-off top at the closure of Altcoin Season. By increasing my recordings, I hope to generate at least 60K SLC per month. At a market cap of $15 million, that would be approximately $115 in semi-passive income per month. This figure could be significantly higher if we experience an Altcoin Season worth writing home about.
It could also be less if the market falls flat. However, SLC tokens can be staked at desirable yields, depending on your choice, with the shortest period being 3 months. Furthermore, you receive additional raffle tickets each month, ultimately increasing your SLC tokens. It’s a typical compounding dynamic that works well over time.
Final Thoughts
Like any altcoin, knowing when to sell your DePIN rewards is crucial. Had I sold my GRASS airdrop at the peak, it would have been worth over $600. However, selling it now would be worth approximately $160. That’s quite a difference in value. Fortunately, I sold all my tokens above $2 and staked them for a brief period, which increased my holdings by approximately 10%, providing some relief. Overall, I netted more than $300, which was not too bad.
Selling SLC holdings will be equally critical, as smaller projects tend to sell off much faster. Maximizing the current SLC mining opportunity could yield thousands of dollars, depending on the length and intensity of Altcoin Season and how well SLC responds to a full-blown bull market for altcoins. One also needs to consider the outcome in a non-event scenario. However, as I mentioned, my approach will earn more passive SLC over time. For me, that’s fine. All the best, catch you in the next one!
Disclaimer
First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in my receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.
This article was first published on Sapphire Crypto.