Hristina Vasileva
Whales are moving into the new DeSci trend, with tokens derived from biotech research. Recently, a whale achieved a $3.4M gain from two tokens linked to new biotech developments.
A whale made $3.4M in profits betting on the new DeSci trend. Arkham noted the wallets managed to grab two trending tokens early, betting on the success of new potentially life-extending molecules.
The trader recognized the potential of Urothilin-A (URO) and Rifampicin (RIF), acquiring the biotech-derived assets just days ago. At its peak, the whale’s holdings reached $6M, before sinking to $3.4M of floating gains.
DeSci is already emerging as a distinct trend, boosted by recent interest from Binance’s founder and former CEO, Changpeng ‘CZ’ Zhao. Vitalik Buterin has also shown interest in DeSci projects during the most recent Devcon event.
Buterin has also joined Molecule DAO for speeches in early 2023, when DeSci and biotech projects were still in a pre-market stage. An upcoming SCICON event will also put the spotlight on DeSci projects and their tokens. A16Z has also expressed interest in DeSci, participating in a recent $5M funding round for AminoChain, a project focusing on building a network for decentralized biosample marketplace.
The mention of DeSci by Binance also sparked interest in the sector, leading to a new rush to pick the best tokens based on molecules. In the case of URO and RIF, the hype centers around potential drugs to extend lifespan.
Despite the market hype, DeSci has a problem with replication and accountability. The fast financing is not linked to real academic skill, and there are few mechanisms for accountability to investors. The most appealing aspect of DeSci remains the potential for fast price gains in the short term.
DeSci tokens prepare to take off
DeSci tokens are a brand-new trend in crypto space, which is still in its early-opportunity stages. Most of the tokens have a limited history, but the trend is already sparking new projects. Organizations like BiohackerDAO also ride on the trend of life extension and breakthrough drugs.
The entirety of the DeSci sector has a market capitalization of just $613M, similar to some of the mid-range meme tokens. The metric shows early-stage opportunity, but also low liquidity and potential volatility risk.
In the past week alone, some of the new DeSci tokens got a boost and expanded by more than 300%, a behavior similar to meme tokens. At this point, it is difficult to vet if the startups are anywhere near a biotechnological breakthrough, or if they simply use the names of potential drugs to achieve something similar to a meme potential.
In theory, DeSci focuses on research in multiple areas, with some outlandish claims such as ‘quantum as a service’ and quantum computing. Other projects focus on DAO building, infrastructure, and funding.
DeSci depends on meme-like pumps
DeSci tokens aim to avoid becoming utility assets, instead going for a meme-like performance. The model that lifted URO and RIF hinges on a mix of research and token price. The token issuer, Pump Science, generated the two tokens with a built-in pump potential.
The company has set milestones for testing its molecules through animal and human models. The two tokens do not have a fixed price yet, but the threshold of a $10M market cap for human testing may help create additional hype.
In addition to issuing the tokens, Pump Science will also livestream its experiments and results. The approach is somewhat similar to meme token streaming, in its potential to use content to attract more investors.
Pump Science may also add new drug-derived tokens, some of which may even be community-proposed. In a way, the project aims to copy the Pump.fun model, though with a more limited number of new tokens.
The DeSci sector is also riding on the fame of life extension enthusiast Bryan Johnson. Pump Science also adds gamification to the process, adding predictions and livestreaming the experiment results. The project calls its community ‘citizen scientists’ and aims to accelerate the scientific process by boosting available liquidity. Pump Science is now at the center of the DeSci hype, adding to demand for all tokens.
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