Why have I spent so much effort on trading the $CALL token in the past three months? What pain points does Coincall address in the market? What are the functionalities of the $CALL token on Coincall exchange? Can early players like us benefit from it?
Excerpt:
From the perspective of a professional options trader, Sober Lu Kun sheds light on the prospects and layout of Coincall, providing insights for more users.
Sober Lu Kun:
He is a professional options trader and holds the U.S. CFA license. He specializes in crypto options and also trades traditional financial stocks and A-share options (since 2018). He won the championship in the VIP group of the OKX options competition and is a well-known figure in the Chinese options community, often providing practical trading insights.
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Table of Contents
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I. What is Coincall?
1. The most comprehensive altcoin options exchange on the market
2. What pain points does it solve in options trading?
3. Focusing on education and improving the ecosystem before expanding the market or investing heavily
4. What are the shortcomings of Coincall?
II. What is the value of the $CALL token?
2. What are the token’s application scenarios?
3. Does the $CALL token have a buyback mechanism?
III. How should I handle my $CALL tokens?
I. What is Coincall?
Those familiar with me should know that when Signalplus and Coincall jointly held the second Options Academy, I gave two classes on options basics at Coincall. It was during this time that I started to use and engage with this cryptocurrency options exchange. After a few months, I found that Coincall is playing the role of a challenger in the market. Why do I say this? I propose several pain points that Coincall addresses for everyone to discuss:
1. The most comprehensive altcoin options exchange on the market
This statement should be very objective. In the past few years, players in the crypto options space could only trade BTC and ETH, and I didn’t even bother looking at altcoins’ fundamentals. However, Coincall currently offers options on altcoins such as SOL, DOGE, XRP, KAS, LTC, MATIC, LINK, TRX, FIL, BCH, and more. Looking back, whether in the current bull market or in historical crypto bull markets, quality altcoins always have the most explosive power. By allocating assets to altcoin spot or options trading in a reasonable manner, we can maximize the odds. This makes our overall investment portfolio smoother in terms of investment comfort, and the overall assets will also rotate and rise. Just as after the recent strong performance of DOGE and KAS, BCH is surging.
I previously made a 1367% profit on DOGE.
2. What pain points does it solve in options trading?
Options trading has always been a niche area in the cryptocurrency industry. Besides the slightly higher learning curve for options, one of the most important reasons is the poor liquidity of individual option strikes due to factors such as exercise price and expiration time. However, Coincall’s emergence was unexpected. The bid-ask spread for low-priced BTC options can reach up to $15, which requires a significant commitment of market-making resources to achieve. This shows a high level of professionalism and sincerity.
In addition to low bid-ask spreads, we can also observe market depth. In general, BTC depth is about 50 contracts, which can meet the needs of medium and regular large traders. If you want to trade more than 100 contracts, you can directly engage in bulk trading. Coincall is prepared to welcome traders of any scale.
3. Focusing on education and improving the ecosystem before expanding the market or investing heavily
When we first negotiated the cooperation with Coincall, including our 4ce labs team, we were all very surprised. It was the first time we heard that there were no KPIs or account opening requirements for collaborating with an exchange. They just wanted us to provide some educational articles, focusing on bridging the learning gap in cryptocurrency options and achieving a thriving options market similar to traditional financial markets.
Coincall initially aimed to expand the market before distributing funds, hoping that everyone could work together to advance the ecosystem. How many times have we seen internal conflicts and infighting within the crypto industry, causing us to struggle within the same circle? Coincall’s approach indeed shows that even exchanges expect to see different landscapes.
4. What are the shortcomings of Coincall?
Coincall brings solutions to the world of crypto options but is not without flaws. On the contrary, there are several issues that need to be resolved as soon as possible. Overcoming these issues will elevate Coincall to a new level, and I will have more reason to believe that Coincall will play a more significant role in this market.
Urgently providing Portfolio Margin (PM) mechanism
The PM mechanism can effectively reduce the trading risk for investors, which is particularly important for professional options users. Additionally, PM can increase market liquidity, making trading more flexible and efficient. At the same time, this mechanism can attract more options users, especially those seeking stable trading.
Enhancing a more robust trading system
Strengthening system stability and security can effectively reduce the risks caused by technical failures, making the entire trading process safer and more reliable. If Coincall intends to attract more users, it will need to put more effort into refining its product.
Disclosing more information regarding the release and fundraising of the $CALL token
II. What is the value of the $CALL token?
With a total supply of only 300 million tokens, Coincall exercises significant restraint compared to other exchanges. Detailed players can make comparisons. Considering the initial circulating supply and token unlocking plan to be announced in the whitepaper, the valuation of the $CALL token will be very attractive.
2. What are the token’s application scenarios?
The token has multiple application scenarios, including regular exchange fee deductions and Launchpool functionalities.
However, what has recently caught my attention is the follow-up plan for Coincall DEX. In terms of on-chain DEX options markets, unicorn-like platforms have emerged, similar to the perpetual futures market. This is because the liquidity and risk control of options are challenging for regular DEX teams to solve.
As a platform with extensive options trading experience, Coincall will tap into this market potential. Coincall has chosen the most robust ETH L2 and SOLANA for chain synchronization. On the one hand, this is based on mature technology. On the other hand, SOLANA has high TPS and popularity, providing room for imagination in terms of high TVL for future DEX. Coincall’s DEX model is expected to be similar to DYDX and AEVO, which helps solve many KYC issues, and is expected to be launched within this year.
Overall, the launch of DEX will provide more functionalities and value to the $CALL token.
3. Does the $CALL token have a buyback mechanism?
Yes, the $CALL token has a buyback mechanism. The deflation of the platform token is the most powerful guarantee for its future value. According to the current information, the platform will use 30% of its quarterly profits to repurchase and burn $CALL, gradually reducing the overall supply of 300 million tokens.
III. How should I handle my $CALL tokens?
After the $CALL token is listed in mid-month, if the secondary market price is below $1, I will continue to accumulate. If the $CALL token price reaches $3-6, I will sell 20% of my position, and the remaining positions will be gradually sold according to the progress of the overall bull market, following the rhythm of distributing the rewards.
However, I will retain 20% of the $CALL tokens overall, expecting greater profits from the DEX launch.
I believe this selling strategy is relatively balanced between defense and offense, providing a comfortable feeling.
Coincall
Further Reading
Coincall launches platform token CALL and recruits altcoin options market makers
Coincall Options Ambassador Recruitment Program