Binance launched a CreatorPad event for Lorenzo on November 20, offering 1.89 million BANK tokens as rewards. This amount, based on the current token price, is over $60,000. However, Lorenzo and Binance are willing to spend this money not for a simple airdrop, but to play a bigger game.
The design of CreatorPad's gameplay is very interesting. It's not just about registering an account and filling out a form to get an airdrop; instead, you really have to create content. You must follow the official account of LorenzoProtocol, then post with the tag LorenzoProtocol and also include the currency symbol $BANK . Finally, you must trade at least $10 of BANK on Binance.
These three conditions seem simple, but the logic behind them is meticulously designed. First, following the official account is to ensure the reach of future information. Any announcements or updates from Lorenzo will be seen by these users first, which is far more effective than buying ad space, as these are real users who actively follow, not passersby forced to see ads.
Next is content creation. Lorenzo set up three tiers of rewards: the top 100 creators share 1,323,000 BANK, while other participants split 378,000 BANK, and the top 50 creators on Binance Square share 189,000 BANK. This tiered design covers creators at different levels.
Big V can receive top rewards. They will seriously create content because the rewards are attractive enough. Ordinary users also have a safety net for participation, so they won't be working hard for nothing. Square creators have a separate pool, which means they are also utilizing Binance's traffic.
The most stringent requirement is the third condition: you must trade $10 worth of BANK. This design directly filters out airdrop hunters because you need to buy the token first to participate. Moreover, once bought, many will likely continue to hold and watch for further developments instead of selling immediately.
From November 20 to December 22, the event cycle lasts over a month. What has Lorenzo gained? First, a massive amount of user-generated content. Every participant must post at least one tagged post. Assuming 10,000 people participate, that’s 10,000 pieces of content. This content will appear in Twitter's search results and be seen by other users, equating to free viral marketing.
Secondly, there is real trading volume. 10,000 people each trading $10 results in $100,000 in trading volume. Although this number is not large, the key point is that these are real users, not bots inflating the numbers. After trading, they will likely continue to follow BANK's trend, and some may even increase their holdings.
Third, the activity level of the community. Lorenzo's Twitter will definitely be lively during the event because participants will tag each other, like, and comment, forming a vibrant community atmosphere. This atmosphere is crucial for attracting new users, as people have a herd mentality; seeing a project buzzing makes it seem reliable.
However, the CreatorPad play is not perfect. The biggest issue is that the quality of content may vary greatly, as many people participate solely for the rewards and not because they genuinely understand the project. They might just write a few sentences to meet the requirement or directly copy and paste others' content.
Lorenzo and Binance definitely know about this issue, which is why they set high rewards for the top 100 and top 50 creators to incentivize those truly willing to spend time creating high-quality content. Moreover, Binance Square has an editorial review mechanism, making it difficult for low-quality content to make the leaderboard.
From the data, Lorenzo's Twitter followers are around 200,000. If CreatorPad can attract 10,000 to 20,000 participants, then the conversion rate would be 5% to 10%. This ratio is considered very high in Web3 marketing because most airdrop events have conversion rates of less than 1%.
Moreover, these participants are not just taking the airdrop and leaving; they have at least followed the official account, traded BANK, and produced content. These three actions all come with costs. The higher the sunk cost, the less likely users are to churn. This is a basic principle of psychology.
Lorenzo chose to hold this event immediately after launching BANK on Binance, and the timing is also carefully calculated. Because there will be a wave of heat after going on Binance, pushing the event at this time will greatly increase participation compared to usual, and Binance has a large user base with extensive reach.
However, there is a risk that there might be a wave of selling pressure after the event ends, as some participants may choose to sell after receiving rewards. Lorenzo should have considered this issue, which is why they extended the event cycle from November 20 to December 22, lasting over a month.
The benefit of doing this is that rewards are not distributed all at once but in batches, with intervals between each batch. This disperses selling pressure, preventing a concentrated dump at a certain time. Moreover, the long event cycle can continuously maintain topic momentum, avoiding a fleeting presence.
From a strategic perspective, the CreatorPad event is about occupying users' minds. In the BTCFi space, there are not only Lorenzo's projects for Bitcoin liquidity. WBTC, Babylon, and Solv are all competitors, but most users have a vague understanding of these projects.
Lorenzo enables tens of thousands of people to actively learn about the project, create content, and trade tokens through CreatorPad. This process establishes recognition in the users' minds. Next time they think of Bitcoin liquidity, the first thought might be Lorenzo. This is the core logic of brand building.
Furthermore, the 1.89 million BANK that Lorenzo is offering is less than 0.5% of the total supply based on the current market value. This cost is actually not high, but the user growth and brand recognition gained far exceed this cost. This is why Binance is willing to host this event for them.
Another angle is that Lorenzo is testing the market fit of his product. If the participation in the CreatorPad event is high, it indicates that there is demand for Lorenzo's product. If participation is low, it suggests that there might be issues with the product that need to be adjusted.
Based on the current situation, Lorenzo's TVL has indeed grown during the event. From a scale of around $1 billion, it indicates that the product itself is attractive. CreatorPad is just the icing on the cake, not a lifeline.
However, in the long run, Lorenzo still has to rely on the product itself to speak. If products like enzoBTC, stBTC, and USD1+ cannot differentiate themselves and have no advantages in safety and yield, then no amount of marketing activities will retain users. CreatorPad is just a beginning, not the end.
Overall, Lorenzo's use of 1.89 million BANK to launch this CreatorPad event plays on the three dimensions of user growth, brand building, and community activity. The effectiveness will be assessed after the event ends, but at least from the design aspect, the logic of this event is coherent, and the execution is relatively on point @Lorenzo Protocol $BANK
