# 251020 Merlin Monday Summary

By [Merlin Community 🔮](https://paragraph.com/@merlin-community-2) · 2025-10-21

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### TL;DR

**🏪 Market Pulse**

*   Liquidity remains thin; institutional flow drives price.
    
*   Bull market intact; avoid high leverage, prioritize Bitcoin protection.
    

**💫 MERL: Price Stable & Systematic buybacks**

*   Binance airdrop added 20–30K holders; price stable.
    
*   Systematic buybacks ongoing; only ~5% on exchanges for long-term stability.
    

**🟧 BTCFi Strategy**

*   BTCFi is core focus for Merlin's revenue and traction.
    
*   Phase 2 staking live; institutions and Korean users engaged.
    

Summary
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**Binance Alpha Airdrop Round 2 & Global Expansion Plans**

Jeff: The Binance alpha airdrop was a pleasant surprise—they distributed about **_$1.5 million worth of tokens_** to early and new traders, which will brought in **_20–30K new holders_**. Sure, some might sell, but it’s great exposure and strong marketing overall. We were initially cautious about potential sell pressure since it coincided with investor vesting, but the token price held up well, even rising slightly. Now, we’re exploring **_staking partnerships with Korean exchanges_**, as Korean users prefer holding and earning yields over short-term trading. This next phase will strengthen **_token stability and user engagement globally_**.

**Building Long-Term Token Strength**

**Jeff:** I’d avoid generic advice like “build your community.” The **first priority** is **_real revenue_** — it keeps your team motivated and your project sustainable. With steady income, you can reinvest in **product upgrades, listings, or buybacks** instead of relying on hype.

The **second key** is **_knowing your real users_** — not short-term traders, but holders who’ll stay for the long run. Focus on keeping them engaged and confident in your vision. That’s how you build lasting token strength.

**Sustainable Buyback Strategy & Transparency**

**Jeff:** We’ve actually been doing **_MERL buybacks since our TGE_**, just not making a big deal out of it. It wasn’t about hype — we wanted to be sure our _BTCFi revenue was sustainable_ before announcing anything.

At first, earnings were unstable, so we did buybacks _on and off_. But now that revenue has become more consistent, **_we’ve started systematic buybacks using real profits_**.

Currently, **_only around 5% of MERL is on exchanges, because most are continuously bought back and staked on-chain_**. Moving forward, we plan to make this process _more transparent_, showing both on-chain and off-chain transfers — as long as it remains financially sound for the long run.

**Market Recovery & Liquidity Outlook**

**Jeff:** Following Bloody Friday, we’re still assessing the market. Liquidity is key — most price movement depends on market makers and institutional participation, not retail traders.

**_We need to see trading volume, open interest, and participation rebound across exchanges to confirm a healthy recovery._** Additionally, the stock market correlation with Bitcoin provides extra signals for overall market sentiment.

Right now, liquidity remains thin, so short-term price fluctuations are expected. A sustainable rebound depends on more users, market makers, and institutions actively engaging in the market.

**Institutional Impact & Liquidity Drain**

**Jeff:** There are rumors of institutions losing money, but nothing comparable to Terra Luna — the situation is less severe. Some institutions may have mismatched positions, e.g., shorting Bitcoin while holding all-coins, which can result in losses during liquidity drains.

**_We’re closely tracking metrics like MERL trading volume, which dropped from 100M+ to ~3M OKRs_**, showing significant liquidity reduction. More information will clarify the full impact as it unfolds.

**Focus on BTC & Product Timing**

**Jeff:** For now, Merlin is **_hyper-focused on BTCFi_** because that’s where revenue and traction are. Entering the broader leveraged product or Perp DEX space now would be too late, as many chains and projects (Sui, Absolute, Sway, etc.) are already highly competitive.

Smaller projects should plan for the future, building patiently for opportunities that could become significant 1–2 years down the line, rather than trying to compete in a crowded, fast-moving market today.

**Market Outlook & BTC Strategy**

**Jeff:** Yeah, I think the bull market isn’t over, but this recent crash was very unusual—small volume caused $30–40B in liquidations. I’d say be cautious with high leverage right now. The best strategy is to protect your Bitcoin, hold it, and stake it for higher yields—that’s definitely the safest and most effective move.

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*Originally published on [Merlin Community 🔮](https://paragraph.com/@merlin-community-2/251020-merlin-monday-summary)*