Exhaustive Scrutiny on GNS Token (Gains Network)

1. Executive Summary

Overview of the GNS token and its unique value proposition.

The Gains Network Token (GNS) is the native utility token of the Gains Network platform, a decentralized leveraged trading platform. GNS is used for various purposes, including:

Trading fees

Governance

Revenue distribution

NFT ownership and benefits

The token's value is closely tied to the platform's trading activity, with token burning and minting mechanisms influenced by trading outcomes. This creates a self-sustaining ecosystem where the token's value is aligned with the platform's success.

SOURCES:

https://www.tradingview.com/symbols/GNSUSDT/ideas/?exchange=BINANCE

https://coinmarketcap.com/currencies/gains-network/

Brief summary of the investment opportunity.

The Gains Network Token (GNS) offers an investment opportunity in a decentralized leveraged trading platform. GNS is used for trading fees, governance, and revenue distribution. The token's value is tied to the platform's trading activity, with token burning and minting influenced by trading outcomes. This creates a self-sustaining ecosystem where the token's value is aligned with the platform's success.

SOURCES:

https://tr.tradingview.com/chart/GNSDAI/Uun5WGtI-Investment-opportunity-in-Gains-Network-GNS-token/

https://experty.io/gains-network-june-2024-price-update-10-81-percent-breakout-news-and-analysis

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2. GNS TOKEN Overview

Mission and Vision: GNS TOKEN long-term objectives.

The long-term vision of Gains Network (GNS) is to become the most adopted decentralized leveraged trading platform. This involves developing a liquidity-efficient, powerful, and user-friendly platform that supports trading across multiple asset classes with unprecedented leverage options, up to 150x for crypto, 1000x for forex, 100x for stocks, and 35x for indices. The platform aims to create a decentralized autonomous organization (DAO) governed by the GNS token, allowing holders to participate in governance and revenue distribution. The ultimate goal is to create great DeFi products that bring revenue to be distributed to GNS token holders.

SOURCES:

https://cryptonary.com/cryptoschool/simply-explained-gains-network-gns/

https://www.coingecko.com/learn/what-is-gains-network-gns

Challenges or gaps GNS TOKEN aims to address.

Gains Network (GNS) aims to address various issues in decentralized leveraged trading. Key focus areas include:

Innovative Trading: Synthetic leveraged trading without borrowing actual assets for improved capital efficiency.

Diploma Recognition: Utilizing the platform to tackle global educational qualification recognition challenges.

Disaster Risk Management: Prioritizing public disaster risk management, reducing vulnerabilities, and identifying proactive risk management solutions.

These initiatives aim to improve efficiency, accessibility, and effectiveness within the Gains Network ecosystem.

SOURCES:

https://www.reddit.com/r/GainsNetwork/?rdt=58446 

https://tokeninsight.com/en/coins/gains-network/overview 

Solution: How the GNS TOKEN proposes to solve these problems.

The GNS token, an integral part of the Gains Network ecosystem, aims to solve these problems in the DeFi space by supporting liquidity efficiency, serving as a backstop for traders, and enabling governance of the protocol. Its deflationary nature and the buy pressure from the protocol purchasing GNS for the Liquidity Pool and stakers who want to compound their returns, make it unique and sustainable.

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3. GNS TOKEN Technology and Product

Technical Architecture: Overview of the blockchain and other technologies used.

Gains Network (GNS) is a decentralized finance (DeFi) project utilizing blockchain technology and synthetic architecture to create a liquid, powerful, and user-friendly trading platform called gTrade. GNS is the governance and revenue-share token, adhering to the ERC-20 standard, with a fixed supply and potential exposure to death spiral risk.

Innovation: How GNS TOKEN Innovates or improves upon existing solutions.

The GNS token serves as a pivotal element within the Gains Network ecosystem, offering innovative solutions and enhancements. It operates as an ERC-20 token with multifaceted roles, including supporting liquidity efficiency, governance functions, and the recollateralization of the gDAI vault. Additionally, the token is anticipated to play a vital role in the shift towards a Decentralized Autonomous Organization (DAO), where GNS holders will take charge of governing the protocol.

GNS TOKEN Roadmap Development milestones, past achievements, and future goals.

GNS TOKEN Roadmap:

Development milestones: gTrade platform, ERC20 utility token (GNS), and ERC721 utility token (NFTs).

Past achievements: partnerships with Polygon, Arbitrum, Chainlink, Maker, Pendle, and MUX; listing on Bitvavo.

Future goals: become a Decentralized Autonomous Organization (DAO) governed by $GNS token; create innovative DeFi products that generate revenue for $GNS holders.

SOURCES:

https://www.binance.com/vi/square/post/1441947

https://experty.io/network:gains-network-june-2024-price-update-10-81-percent-breakout-news-and-analysis

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4. Market Analysis of GNS TOKEN 

Target Market: Size, demographics, and behavior of the potential market.

According to the available sources, the GNS TOKEN market has a current price of $5.13, with a total supply of 30.45 million tokens and a maximum supply of 33.89 million tokens. The token has approximately 14,544 holders. The market capitalization is reported to be $156.38 million, and the 24-hour trading volume is $12.16 million.

The market sentiment appears optimistic, with a slight increase in the token's price over the past 24 hours. These figures suggest that the GNS TOKEN market is active and engaged, with a substantial number of holders and trading volume, indicating a strong interest in the token.

Competitive Landscape: GNS TOKEN Analysis of competitors and GNS TOKEN position in the market.

Gains Network (GNS) is a DeFi ecosystem with a comprehensive feature set, including 39 crypto pairs, 22 stocks, and 10 forex pairs. It offers higher leverage for trading, up to 150x on crypto assets, 100x on stocks, and 1000x on forex trades. GNS has seen significant growth, soaring nearly 30 times compared to its price on November 1, 2021. The DAI Vault Collateralization level is approaching 130%, indicating a strong position for GNS. The GNS token is expected to function as a governance token, with holders staking tokens to receive veGNS for voting on proposals.

Market Trends:   GNS TOKEN Current and anticipated trends that could affect.

The GNS token, associated with Gains Network, is predicted to have varying prices throughout 2024, with an average of $5.26 in May, $5.50 in June, $5.75 in July, $4.30 in August, $5.16 in September, and $6.02 in October. These predictions are based on factors affecting demand and supply. In the long term, the GNS token could reach an average price of $228.40 in 2028 and $471.54 in 2029. Other sources suggest that GNS could reach an average price of $24.36 in 2024, $8.35 in 2026, $6.85 in 2027, and $12.57 in 2029, with potential peaks during those years.

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5. Team and Advisors

Backgrounds: Experience and expertise of GNS TOKEN founding team and key members.

The GNS TOKEN founding team and key members bring a diverse set of skills and experiences to the table. The team includes individuals with backgrounds in law, technology, sustainability, and education. For instance, Iain G Mitchell KC is a legal expert with expertise in commercial litigation, intellectual property, and information technology law. Cristian Parrino is a tech entrepreneur and sustainability advisor, currently serving as the Chief Sustainability Officer at OpenUK. Carlo Piana is an IT lawyer and open-source software advocate. Mark Radcliffe is a senior partner at DLA Piper and co-chair of its Blockchain and Digital Assets practice.

GNS TOKEN Advisory Board: Influence and contribution of the advisors.

The GNS TOKEN Advisory Board plays a significant role, despite lacking direct involvement in the project's development. The advisors contribute to the project's influence and growth through strategic partnerships and collaborations.

Team Structure: GNS TOKEN Effectiveness of the team's organization and communication.

The GNS TOKEN team's effective organization and communication are evident in the platform's innovative features, user-centric design, and strategic roadmap, positioning Gains Network as a significant player in the DeFi trading space.

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6. GNS TOKEN Tokenomics and Financials

GNS TOKEN Utility: The purpose and use cases for GNS token.

The token has a total supply of 100,000,000 GNS, with approximately 30,000,000 in circulation, and its price has increased significantly since its inception. Gains Network's primary product, gTrade, relies on the GNS token for its operations, with token burns creating deflationary pressure on the supply.  GNS token is the native utility token of the Gains Network ecosystem, serving various purposes within the platform. It supports liquidity efficiency, helps capitalize on resources, and offers the best trading experience. GNS is used for staking, minting rewards for oracle bots and affiliates, reducing vault drawdowns, and increasing overall stability.

GNS TOKEN Distribution Allocation of tokens (e.g., team, advisors, public sale).

The GNS token distribution allocation for the Gains Network project includes the following stakeholders: community (37%), reserved and treasury (27%), founder/core team (20%), and private investors (16%). The community allocation is the largest portion, which helps distribute power and influence, reduce the risk of centralization, and incentivize active participation and engagement. The reserved and treasury allocation is used to fund future initiatives.

Financial Model: GNS TOKEN revenue streams, cost structure, and profitability projections.

GNS TOKEN's financial model is robust, with diverse revenue sources and efficient cost management. Trading fees and net deposits generate $22.31 million and $24.92 million annually, respectively. The deflationary design, involving token burning and minting, ties the token's value to platform success. The platform's profitability is demonstrated by earnings of $1.44 million over 30 days, with a balanced P/F ratio of 7.1x and a P/S ratio of 9.0x, indicating strong financial stability and sustainability.

SOURCES:

https://kriptokoin.com/en/what-is-gns-coin/

https://www.bybit.com/en/coin-price/gains-network/

GNS TOKEN Funding History: Previous funding rounds, investors, and current valuation.

GNS Token, the native utility token of Gains Network, has a market capitalization of $167.53 million and a 24-hour trading volume of $10.17 million. There is no information available on previous funding rounds, investors, or current funding status for Gains Network.

SOURCES:

https://coinmarketcap.com/currencies/gains-network/

https://cryptorank.io/price/gains-network

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7. GNS TOKEN Community and Ecosystem

Community Engagement: Size, growth, and engagement levels of the community.

The GNS token plays a vital role in the Gains Network ecosystem, fostering community engagement and governance. The community actively participates in shaping the platform's future through forums like Discord and on-chain proposals via Snapshot. As GNS transitions to a governance token, holders will have a direct say in protocol decisions, ensuring a decentralized and democratic operation. The GNS token's deflationary mechanism and revenue distribution model benefit stakeholders, including liquidity providers and NFT holders. Over 20% of the GNS supply has been burnt through organic deflation, enhancing its value. The Gains Network DAO, empowered by GNS, will enable users to govern the platform collectively, emphasizing transparency and fairness.

GNS TOKEN Partnerships: Strategic alliances and partnerships.

GNS Token has established strategic alliances and partnerships to enhance its ecosystem. Key partnerships include collaborations with international stakeholders for geothermal energy and natural hazard resilience projects, as well as partnerships with global geoscience agencies in Australia, Japan, Germany, Italy, and the USA.

GNS TOKEN Network Effects: The project's strategy for achieving and benefiting from network effects.

The GNS Token Network Effect strategy leverages the token's utility and appreciation tied to network growth. GNS is used within the Gains Network, a decentralized derivatives trading platform on Polygon, for up to 1000x leverage on crypto, stocks, and forex. As the network grows, the token's value increases, incentivizing participants to hold and stake GNS, creating a flywheel effect where token value and project utility reinforce each other.

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8. GNS TOKEN Risks and Challenges

Market Risks: 

Exposure to market volatility and competitive threats.

GNS token, the native currency of the Gains Network, faces several risks and challenges, primarily market risks such as exposure to market volatility and competitive threats. The protocol's unique features, like over-the-counter transactions limited to 0.05% of the total GNS supply daily, help mitigate some risks but may also deter professional and institutional investors seeking higher leverage The regulatory landscape for tokenization is still unclear, leading to uncertainty for companies looking to tokenize their assets and potential legal challenges. Liquidity risk is another challenge, as tokens are only valuable if there is a market for them. Security risks, technology risks, and lack of standardization also pose significant challenges to the GNS token and the broader tokenization ecosystem.

GNS TOKEN Technical Risks: Potential technical hurdles in development or deployment.

The development and deployment of GNS token, a decentralized and censorship-resistant domain name resolution protocol, may face potential technical hurdles. The primary concern is the issue of a single hierarchy with a centrally controlled root, which is a common problem in DNS due to its centralized root zone governance.

GNS TOKEN Regulatory Risks: Legal challenges that could impact the project's viability.

The regulatory risks and legal challenges surrounding GNS TOKEN, or any cryptocurrency, are significant and multifaceted. The primary issue lies in the proper classification of cryptocurrencies, with some analysts arguing that they represent an entirely new asset class. The SEC has taken a sporadically aggressive stance, viewing the vast majority of ICOs as subject to U.S. securities laws. However, a global legal vacuum exists due to the lack of precise fit of cryptocurrencies within traditional definitions. The SEC's efforts to regulate crypto exchanges have been criticized for potentially halting innovation or driving it out of the country.

Other Risks: GNS TOKEN Any other potential risks not covered above.

In addition to the risks mentioned earlier, investing in Gains Network (GNS) involves liquidity risks, and potential benefits, volatility, and likely performance in various market and economic conditions. 

Liquidity risks may arise due to difficulties in accessing trading platforms or delays or errors in the settlement of trades. The value of GNS investments could decline, and investors could lose part or all of their investment if any of the described risks occur.

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9. GNS TOKEN SWOT Analysis

Strengths:

Decentralized Leveraged Trading: GNS Token supports decentralized derivatives trading on the Polygon network, offering up to 1000x leverage on crypto, stocks, and forex.

Network Effect: The token's value increases as the network grows, incentivizing participants to hold and stake GNS tokens, creating a flywheel effect.

Data Network Effects: The platform leverages machine learning to improve services with more user data, similar to Netflix.

Community Engagement: The community allocation of 37% in the token distribution helps distribute power and influence, reducing centralization risks.

Weaknesses:

Market Risks: Exposure to market volatility and competitive threats.

Regulatory Uncertainty: The regulatory landscape for tokenization is unclear, leading to uncertainty and potential legal challenges.

Liquidity Risk: Tokens are only valuable if there is a market for them.

Security Risks: Technical hurdles and lack of standardization pose significant challenges.

Opportunities:

Growing Demand: The demand for decentralized derivatives trading platforms is increasing.

Partnerships: Secured partnerships with Polygon, Arbitrum, and Chainlink enhance the platform's capabilities.

Gains Network Expansion: The platform is expanding to other decentralized networks, increasing its reach.

Threats:

Competitive Threats: Other decentralized derivatives trading platforms may emerge, posing competition.

Regulatory Challenges: Regulatory uncertainty and potential legal challenges could hinder the platform's growth.

Security Risks: Technical hurdles and lack of standardization pose significant challenges to the platform's security.

SOURCES:

https://www.coingecko.com/learn/what-is-gains-network-gns

https://www.charliedefi.com/opportunities-and-risk-dapps/gains-network-opportunities-and-risk

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10. How GNS works with TheStandard.io 

Possible collateral type: 

The Standard protocol enables users to utilize GNS as collateral for securing loans in EUROs and soon, USDs, with no interest fees. This non-custodial system guarantees a secure and user-controlled borrowing experience.

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11. GNS TOKEN Conclusion and viability score

Final assessment and Score:

The GNS token, a key component of the Gains Network ecosystem, has demonstrated viability in the competitive DeFi trading space. It addresses challenges in diploma recognition, disaster risk management, and leveraged trading, utilizing its deflationary nature and buy pressure from the protocol and stakers to drive its value. The token's governance and revenue-share roles, combined with its fixed supply and potential exposure to death spiral risk, position it well for long-term success. However, continuous monitoring and strategic planning are necessary to address potential threats like market volatility and regulatory risks.