Copium Protocol is a new, innovative project that is looking to revolutionize the crypto mining industry through token repurchases and NFT passes.
Put simply, rewards generated through Copium Protocol mining activities will be used to repurchase and subsequently burn the project’s native token – Copium Coin.
This will have the desired impact of reducing the overall supply of Copium Coin and thus – ensure that it remains a deflationary digital asset.
In this market insight, we take a much closer look at the Copium Protocol project and explain how to invest in its much-anticipated presale launch.
Copium Protocol – Project Overview in 2023
For a quick overview of the Copium Protocol concept, consider the following:
- Copium Protocol is a registered mining operation based in New Zealand that operates fully on green, renewable energy sources.
- Revenues generated from Copium Protocol mining operations will be used to repurchase the project’s native crypto asset – Copium Coin. The purchased tokens will then be sent to a burn address and thus – this will reduce the overall supply.
- Copium Protocol is launching 10,000 Copium Protocol Investor Passes, via NFTs that are stored on the Ethereum blockchain. The funds raised will be used to purchase additional mining equipment with the most advanced and efficient capabilities.
- Those in possession of a Copium Protocol Investor Pass will be entitled to a range of benefits, such as Copium Coin airdrops, high-APY staking, and other rewards.
- Copium Protocol will also be launching its Copium Coin via a presale launch. This will offer early investors the opportunity to purchase Copium Coins at a discounted price.
What is Copium Protocol?
First and foremost, Copium Protocol is a registered cryptocurrency mining company based in Otago, New Zealand. While cryptocurrency mining often has a murky reputation with environmental groups, this isn’t the case with Copium Protocol. On the contrary, Copium Protocol mining operations are 100% facilitated by green, renewable energy sources.
This is made possible through a hydroelectricity plant located just several miles from the Copium Protocol facility. Not only does Copium Protocol operate in an environmentally-positive nature, but its access to local energy ensures that its mining facility is both efficient and profitable.
Moreover, New Zealand is often cited as one of the most transparent business environments globally, which subsequently ensures that Copium Protocol operates in the best interests of its stakeholders. To take its business model to the very next level, Copium Protocol is offering a unique opportunity to investors.
That is to say, Copium Protocol will be offering a slice of its mining operations to the general public. Those buying a Copium Protocol Investor Pass – of which there are just 10,000, will be entitled to a range of benefits – such as airdrops and high-yield staking rewards. Each Investor Pass is represented by an NFT that operates on the Ethereum blockchain.
Moreover, Copium Protocol is also launching its own digital currency – Copium Coin. This will also function on the Ethereum network and thus – Copium Protocol is an ERC-20 token. Most innovatively, Copium Protocol will utilize a portion of the revenues generated from its mining operation to repurchase Copium Coin tokens from the open market.
This is not too dissimilar to conventional share buyback schemes executed by large-cap stocks like Procter & Gamble, Target, and Apple. The idea is that by purchasing an allocation of Copium Coin from the open market, the tokens will be sent to a burn address. This removes the respective tokens from the circulating supply and thus – Copium Coin is a deflationary token.
How Does Copium Protocol Work? A Closer Look
There are many facets to the Copium Protocol ecosystem – which covers everything from Investor Pass NFTs and mining operations to token repurchases and burn wallet addresses.
With this in mind, we will now take a much closer look at how Copium Protocol works from top to bottom.
As noted above, Copium Protocol as a company is offering two ways to gain exposure to its growing mining operations. The first is the Copium Protocol Investor Pass. In total, there are 10,000 Investor Passes and each is represented by an NFT that is stored on the Ethereum blockchain for transparency and security.
All 10,000 Investor Passes will be sold in the first week of November 2022 via a Dutch Auction model. The starting price of each NFT will amount to 3.5 ETH. However, the first 2,000 investors to pre-register for the Copium Protocol Investor Pass auction will have access to a lower, fixed-price of 3 ETH.
Nonetheless, purchasing an Investor Pass comes with a full suite of perks, such as:
Exclusive Copium Coin Airdrop
Those in possession of a Copium Protocol Investor Pass will be entitled to a crypto airdrop. This will consist of 10,000 Copium Coins, with NFT holders only paying the respective Ethereum gas network fee.
Higher Staking Rewards
Although we discuss the Copium staking platform in more detail later, we should note that Investor Pass holders will be entitled to preference interest rates. This means that holders will have access to higher APYs and thus, this offers the opportunity to earn an attractive passive income.
Moreover, Investor Pass holders will also be offered a special one-time staking rate of 38% APY after completing the purchase of their NFT via auction.
This rate is optional, based on a 36-month staking period, and must be claimed within 30 days of obtaining a Copium Protocol Investor Pass.
Another option for Investor Pass holders is to stake their NFT for daily Copium Coin rewards. This will be paid at a fixed rate of 10 Copium Coins each and every day for up to 24 months. This will be the case irrespective of the market value of Copium Coin at any given time.
Each Copium Protocol Investor Pass is represented by an NFT, which means that investors can verify their stake in the project via the Ethereum blockchain. The value of an Investor Pass will, therefore, be determined by the open market.
In theory, if the Copium Protocol project takes off, there is every possibility that demand for Investor Pass NFTs will increase. After all, there will only ever be 10,000 Investor Passes – which means just 10,000 holders.
Proceeds From Investor Pass Sales
The team behind Copium Protocol explains that proceeds from the sale of Investor Pass sales will be put to good use. That is to say, the project will subsequently invest in wholesale quantities of mining equipment.
The purchasing process will focus on efficient mining equipment with the most powerful characteristics. This will ensure that Copium Protocol remains competitive at all times in terms of generating consistent mining income. After all, mining operations only make a profit if the rewards generated supersede that of the underlying cost.
In addition to purchasing equipment, proceeds from Investor Pass sales will also be used to upgrade the current infrastructure in the New Zealand-based mining facility.
As we discuss in more detail shortly, the more powerful and efficient the Copium Protocol mining operation is, the more the firm will be able to generate revenue. And in turn, the more revenues that are generated, the more funds there will be to repurchase the Copium Coin from the open market.
This will ultimately benefit all parties involved in the Copium Protocol ecosystem.
The second avenue that investors might consider when gaining exposure to the Copium Protocol project is the Copium Coin. As noted, this is the native digital asset backing the Copium Protocol.
Copium Coin operates on the Ethereum blockchain and thus – it follows the ERC-20 standard. The tokenomics of the Copium Coin can be found further down in this guide.
In the meantime – allow us to explain the fundamentals of the Copium Coin and how this deflationary blockchain asset might appeal to long-term buy and hold investors.
In a nutshell:
- Revenues generated from the Copium Protocol mining operation in New Zealand will generate surplus capital for the firm
- Some of this surplus capital will subsequently be used to purchase Copium Coin from the open market
- This means buying an allocation of tokens from a crypto exchange
- Once an allocation of Copium Coin is purchased, the tokens will be sent to a burn wallet address
- This means that the tokens are unrecoverable and thus – they are effectively removed from the total supply
The theory is that this will have a similar effect on the value of Copium Coin as a share buyback program initiated by publicly traded stocks. The reason for this is that while the fundamentals of the project remain the same, the number of tokens in circulation is reduced.
Therefore, Copium Coin becomes more scarce. And, if demand for the token remains intact, then this could potentially result in the value of Copium Coin increasing.
Simplistic Example of Token Burn Implication
For those new to share buybacks or token burns, here’s a quick example to clear the mist:
- Let’s say that a crypto project has 1 million tokens at $1 each
- This gives the project a total market capitalization of $1 million
- The project burns 100,000 tokens, leaving 900,000
- Assuming that the valuation remains constant, the law of market forces might result in the price of the token increasing to $1.11
- This is because a valuation of $1 million, divided by the number of circulating tokens (900,000), requires a token price of just over $1.11.
It is important to remember that token burn structures – or even traditional share buybacks, don’t always result in the value of the asset increasing. This is something to bear in mind when electing to invest in cryptocurrency for speculative purposes.
Copium Protocol Staking
Make no mistake about it – Copium Protocol is a project ideally suited to those that prefer to take a long-term, buy-and-hold strategy. And to support this sentiment, Copium Protocol has also built an attractive crypto staking platform.
For those unaware, this enables investors to deposit their Copium Coin tokens into the Copium Protocol platform with the view of earning interest. This will remain the case for as long as the tokens are staked.
The respective APY will depend on two core metrics – the length of time that the tokens are staked and whether or not the investor has a Copium Protocol Investor Pass.
|LOCKED PERIOD||INVESTOR PASS HOLDER||PUBLIC STAKING RATE|
|30 DAYS||12% APY||4.5% APY|
|90 DAYS||15% APY||7.8% APY|
|12 MONTHS||21% APY||9.25% APY|
|24 MONTHS||28% APY||11% APY|
|36 MONTHS||38% APY(LIMITED TIME ONLY)||N/A|
As per the table above, a higher APY is offered on longer staking terms.
Investors should, however, remember that while Copium Protocol tokens are being staked, they are locked until the term concludes. For instance, on a 24-month term, withdrawals cannot be made for a period of two years.
Moreover, those in possession of a Copium Protocol Investor Pass will have access to significantly higher APYs. Moreover, only Investor Pass holders have access to 36-month terms.
Nonetheless, all staking rewards are paid in Copium Coin. This enables long-term investors to increase their exposure to the project without needing to purchase additional tokens.
For an overview of what’s possible when staking Copium Coin, consider the following example:
- Let’s say that the investor opts for a 12-month staking term
- A Copium Protocol Investor Pass is held, so an APY of 21% is offered
- We’ll say that 10,000 Copium Coin tokens are staked
- After 12 months, the original 10,000 Copium Coin tokens are returned to the investor’s wallet
- This is in addition to the 21% APY, which amounts to rewards of 2,100 Copium Coin tokens
- All in all, the investor now has 12,100 tokens
Another benefit (and risk) of staking Copium Coin is that the value of the token should also be taken into account. For instance, if the value of Copium Coin increases, the benefit to the investor will be two-fold.
This is because they will receive additional tokens from staking, which are then multiplied by a higher market price. Of course, if the value declines, then the investor could end up making a loss.
Copium Protocol Presale – Full Details
Those with an interest in Copium Protocol will be pleased to know that it is possible to gain exposure to this project at a super-early stage.
The reason for this is that both the Copium Coin and the Copium Protocol Investor Pass are yet to be launched to the public. Before we provide more details on how to invest, this section will provide an overview of the Copium Coin presale.
- This much-anticipated crypto presale is set to commence on November 7th, 2022.
- In total, 50 million Copium Coin tokens will be made available to presale investors
- The presale exchange rate is 18,519 Copium Coin tokens per 1 ETH.
- Based on prices at the time of writing, this amounts to approximately $0.07 per Copium Coin, albeit, this is subject to change as per the market value of Ethereum.
While there are never any guarantees when electing to buy cryptocurrency, the presale price will offer investors the opportunity to gain exposure to Copium Coin at a discount. This means that presale investors typically see an immediate upside once the token is listed on a crypto exchange.
How to Invest in the Copium Protocol Presale
As noted above, the Copium Coin presale is scheduled to begin on November 7th, 2022 and 50 million tokens will be made available.
At this stage, information on the specifics are somewhat limited, albeit, the investment process will likely look like the following:
Step 1: Get an ERC-20 Compatible Wallet
The first step is to obtain a wallet that is compatible with ERC-20 tokens like Copium Coin.
This is because the presale process requires the investor to connect their wallet to the Copium Coin dashboard and utilize ETH for the payment. Moreover, Copium Coin tokens will be stored in the chosen wallet.
There are dozens of wallets that support ERC-20 tokens, albeit, MetaMask is one of the best options to consider – especially for beginners.
MetaMask can be downloaded as a mobile app for iOS and Android devices. After downloading the app, complete the setup process via the on-screen instructions.
Step 2: Get Ethereum Tokens to Pay for the Presale Investment
As an ERC-20 token, the Copium Coin presale will accept ETH as a payment method. Potentially, Tether (USDT) might be considered to as is often the case, but this is yet to be confirmed.
As such, in preparation for the presale, investors should consider adding ETH tokens to their wallet.
Those new to this space can learn how to buy Ethereum here.
Step 3: Connect Wallet to Copium Coin Presale
As soon as the Copium Coin presale goes live, the investor will need to connect their crypto wallet to the dashboard. On the Copium Protocol website, click on the ‘Presale ICO’ button.
Then, click on ‘Connect for Price’. This will then display a QR code that is backed by WalletConnect. Virtually all crypto wallets now support WalletConnect, including MetaMask.
Open up the MetaMask app, find ‘WalletConnect’, and when prompted – scan the QR code displayed on the Copium Coin presale dashboard.
After authorizing the connection via MetaMask, the wallet will then be connected to the Copium Coin website.
Step 4: Invest in Copium Coin Presale
Once the wallet is connected – and assuming that the presale is live, the investor can then complete their purchase of Copium Coin tokens.
The investor will simply need to specify the number of ETH tokens that they wish to swap for Copium Coin. To confirm the presale investment, authorization needs to be confirmed via the connected wallet.
How to Invest in Copium Protocol Investor Pass
Those looking to invest in a Copium Protocol Investor Pass can follow the step-by-step instructions outlined below:
Step 1: Pre-Register for Early Access
As noted earlier, Copium Protocol Investor Passes will go on sale on November 7th, 2022. A total of 10,000 Investor Passes will be made available, albeit, the first 2,000 people to pre-register will get preferential pricing.
This stands at a starting price of 3 ETH as opposed to 3.5 ETH.
To proceed, visit the Copium Protocol website and click on the ‘Register Now’ button.
Then, click on the ‘Login to Register’ button. Copium Protocol will then ask the investor to choose their preferred crypto wallet, which will connect to its dashboard.
Step 2: Fill Out the Pre-Registration Form
Next, the investor will need to follow Copium Protoco’s Twitter account, @copiumprotocol. An email address will also need to be entered.
In order to complete the pre-registration form, the connected wallet must have a balance of at least 0.1 ETH. Finally, hit the ‘Click to Register’ button to confirm.
Step 3: Complete Purchase
Once the Copium Protocol Investor Pass auction goes live on November 7th, 2022 – investors can then complete their purchase.
The steps involved, in addition to the cost price, will depend on whether or not the investor pre-registered. As noted, the first 2,000 investors to pre-register will pay a fixed price of 3 ETH.
The remaining 8,000 investors will need to buy the Copium Protocol Investor Pass via a Dutch Auction listing.
Either way, all purchases must be made in ETH.
In summary, Copium Protocol is building a highly innovative framework that will enable investors from all over the world to gain exposure to a legitimate, eco-friendly, and profitable crypto mining operation.
After all, Copium Protocol is a registered mining company based in New Zealand that operates 100% on green, renewable energy sources.
Early investors have the option of buying the project’s native token – Copium Coin, via a presale launch that will commence on November 7th, 2022.
On the same date, the Copium Protocol Investor Pass will launch. Backed by an NFT, the Investor Pass will offer a full suite of long-term benefits.