What is Lucky Block? What you need to know about LBLOCK decentralised lottery project tokens
The blockchain-based Lucky Block lottery platform has drawn the attention of cryptocurrency investors as the Binance Smart Chain (BSC) project launched a second Ethereum-based version of its LBLOCK token this month. It will list both tokens on the Gate.io centralised exchange (CEX) in September.
The prices for the two tokens have diverged. The LBLOCK V1 token price has fallen in the past two weeks, while the LBLOCK V2 token currently trades (25 August) around V1’s previous level.
What is Lucky Block? What is its cryptocurrency coin used for, and how does it work? What has happened to the price of the two LBLOCK tokens?
In this article, we explain what you need to know about Lucky Block.
What is Lucky Block?
Lucky Block is a platform for non-fungible token (NFT) competitions. Players can earn rewards in the form of LBLOCK tokens by holding NFTs and entering competitions.
Lucky Block was founded by Scott Ryder, the company’s CEO and a former head of sales at fintech marketing business Investoo Group. Ryder is also co-founder of DeFi Coins and CEO of StakeMoon Coin.
James Fennell, LuckyBloc’s COO, is also CEO of NFT Launchpad and a former head of global marketing operations at digital media company Finixio.
Lucky Block launched in January 2022. In February the developers announced a software upgrade to implement its 12% tax on sales of the LBLOCK token. “The tax is used to incentivise long-term holdings, discourage day-trading and fund the lottery prize pool,” according to the announcement.
Lucky Block said that it was the first cryptocurrency project to reach a $1bn market capitalisation in its first three weeks.
The Lucky Block coin LBLOCK was initially listed on the LBank centralised exchange and the PancakeSwap (CAKE) decentralised exchange (DEX). The announcement said:
Lucky Block launched its first NFT collection, the Platinum Rollers Club, in March on the NFT LaunchPad marketplace.
There were 2,484 NFTs sold of the original 10,000-token collection, with each NFT giving holders automatic entries into competitions and a percentage of the rewards pool.
“We wanted to give our NFTs and competitions a true, tangible rewards structure and actual utility. Giving every holder a shot at winning the prize and rewards for participating,” said the Lucky Block website.
“Utilising NFTs available to buy on our partner NFT marketplace launchpad.xyz we offer holders a percentage reward as long as they hold their NFT. When an NFT collection sells out, we will do a random draw and announce an eligible winner of the competition tied to the NFT collection. This can be anything from a PS5 to a Private Island!”
The Lucky Block crypto token powers the platform’s rewards structure. So what are the two LBLOCK token versions?
What is the LBLOCK native coin?
What is Lucky Block’s cryptocurrency coin? The LBLOCK native coin is used to reward holders of Lucky Block’s NFTs. Holders receive daily rewards based on the number of NFTs they hold. The rewards pool is equivalent to 1% of the overall profit from each competition. Lucky Block also holds weekly competition draws.
What is LBLOCK V2? The initial LBLOCK token was launched on the Binance Smart Chain in January, and based on the BEP-20 token standard. Lucky Block then launched an ERC-20 version of the token, LBLOCK V2, on the Ethereum blockchain on 25 July.
The Lucky Block development team explained in a Twitter thread on 1 August why they opted to launch a second version of the LBLOCK token.
1/ In order to clear confusion regarding the two currently available LBLOCK tokens, we have a detailed explanation around the process of why the two tokens exist and currently what is being put in place to ensure a cohesive project in the coming months, that rewards all holders????
— Lucky Block (@luckyblockcoin) August 1, 2022
“The original LBLOCK token was built on Binance Smart Chain, with a 12% tax applied to sales. This chain has low transactional costs, which is beneficial for games / competitions and rewards. However it is still a chain developed by Binance and isn’t the preferred option for most other exchanges.
However, there was some confusion among LBLOCK V1 holders about whether the switch would work.
“During the process of launching LBLOCK V2 ERC, it was announced we would first swap out V1 tokens on LBANK, followed by a listing on MEXC on Aug 1st,” the thread continued. “It was repeatedly made clear on social channels and articles in online publications, that the swap would take place and users would receive 0.94 V2 tokens for each V1 token they held. All users had the opportunity to move tokens to LBank to receive the new V2 token. Many users preferred to hold onto their existing V1 token.”
To now be able to migrate their tokens from LBLOCK V1 to LBLOCK V2, holders will need to use a BEP to ERC bridge, which remains under development.
“It is vitally important that V2 has as much trading volume and price increase as possible, in order to guarantee these listings and give all V1 holders huge upside value when the bridge is released,” the thread claimed.
New LBLOCK token price rises on exchange listing
The Lucky Block price history shows that the price for the LBLOCK V1 token launched at $0.0008611 in January and soared by 1,000% to $0.009617 on 17 February. But the price quickly fell back, and the token was trading down to $0.001341 on 27 March. The price moved up to $0.003738 on 4 April but then resumed its decline, dropping to $0.001056 on 12 May when cryptocurrencies sold off.
Although the token traded up to $0.002818 on 20 May, it fell to $0.00101 on 14 June. The LBLOCK V1 price spiked to $0.003214 on 2 August after the LBLOCK V2 token launched at the end of July, but then dropped to $0.0006279 on 5 August.
LBLOCK V1 ticked up to $0.001392 on 10 August as volatility increased, bouncing between $0.0007284 and $0.001463 until 15 August. The price fell to $0.0004055 on 20 August and, as of the time of writing (25 August), continues to trade around that level.
Lucky Block announced on 25 August that the Gate.io centralised exchange will list the LBLOCK V1 token on 1 September. The LBLOCK V2 token will launch on the exchange in the week commencing 12 September. The token currently trades on LBank, Uniswap and the MEXC Global exchange.
The LBLOCK V2 token price climbed from $0.002125 on 16 August to $0.002338 on 18 August. The price dipped to $0.001925 the next day, rebounded to $0.002307 on 21 August and dropped to $0.001872 on 24 August.
Lucky Block risks and opportunities
Lucky Block aims to reward investors who hold onto its NFTs by offering daily competition rewards. Investors could also make gains from holding the LBLOCK token, with potential for the price to rise on new exchange listings.
But new cryptocurrency projects like Lucky Block are very high-risk investments. The LBLOCK V1 token price has fallen well below the value of the V2 token. Holders are unable to convert their V1 tokens, as the launch of the bridge to Ethereum has been delayed. And there is no guarantee that entrants will ever win anything.
FAQs
Is Lucky Block a good investment?
In volatile cryptocurrency markets, it is important to do your own research on a coin or token to determine if it is a good fit for your investment portfolio. Whether the token is a suitable investment for you depends on your risk tolerance and how much you intend to invest, among other factors.
You should do your own research to develop an informed view of the market. Look at the latest market trends, news, technical and fundamental analysis, and expert opinion before making any investment decision. Keep in mind that past performance is no guarantee of future returns. And never invest money that you cannot afford to lose.
How high can Lucky Block go?
The BLOCK token price could be influenced by, among other factors, the use of the Lucky Block lottery platform and whether the token is listed on more cryptocurrency exchanges, making it more accessible to investors.
Where can I buy a Lucky Block coin?
You can buy the LBLOCK V1 token on PancakeSwap and the LBLOCK V2 token on LBank, MEXC Global and Uniswap.
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