One crypto seasonality solution exists in the form of continually accumulating assets.
While there might be multiple solutions to crypto seasonality, one crypto startup, Seasonal Tokens, is developing a potentially safer alternative to traditional trading methods. Seasonal Tokens are designed to rise and fall over the course of nine months, hoping to provide investors with a more stable alternative to Bitcoin’s downtrends.
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The project breaks up its tokens into the four seasons: Spring (SPRING), Summer (SUMMER), Autumn (AUTUMN) and Winter (WINTER). Ideally, investors will buy Spring tokens while they’re the cheapest to produce and hold them over the period when they become the most expensive.
As the seasons change, investors will switch these Spring tokens to Summer tokens, which would presumably rise in value next, and so on through the later seasons. In a perfect scenario, an investor would trade Spring for Summer when Spring tokens are the most expensive to produce, and Summer tokens are the cheapest, increasing the total number of tokens they own. Then when the Summer tokens peak, the investor would trade them for Autumn tokens at their lowest point, accumulating even more.
These peaks and valleys are the cause of interval-based production cuts, similar to the Bitcoin halving. For example, in June, Spring token production will be cut in half, making it more expensive to produce than other tokens. By the time Spring rolls around again, users would convert their Winter tokens to Spring tokens and profit off of their rarity, all without contributing additional real-world funds.
Based on this model, Seasonal Tokens hopes to provide an asset that’s constantly accumulating and rising in value, giving a safe space for investors to transfer their funds during a Bitcoin bear market.
Disclaimer. Cointelegraph does not endorse any content or product on this page. While we aim at providing you with all important information that we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor can this article be considered as investment advice.
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