Blockchain Investor Analysis

Binance coin logo

Binance Coin

BNB
Current Price $322.57 (+1.73%)
Binance Coin was launched by leading digital asset exchange Binance to enable its users to receive trading fee discounts. Today, Binance Coin runs on two blockchain, Binance Chain and Binance Smart Chain, and has established itself as one of the most popular digital assets in the market. Click to download our Investor Scorecard.

Our Rating:

Market

Problem that it solves

BNB encourages Binance Exchange users to utitlize the trading platform by providing discounts and incentives. Additionally, BNB is used to cover transaction fees on the recently launched Binance Smart Chain, a smart contract-enabled parallel chain to Binance Chain.

Customers

Customers of BNB coin will be those who buy, sell, or trade digital currencies on the Binance platform, and to cover transaction fees on Binance Chain and Binance Smart Chain.

Value creation

Users can perform transactions on the Binance platform and only pay half price for fees when using BNB. Additionally, BNB is used to pay for transaction fees required to access DApps on Binance Smart Chain.

Market structure

BNB's market composition is made up of users who want to learn about buying, selling, and trading digital coins, which is a concentrated market. Additionally, BNB is used by anyone wanted to transact or build on Binance Smart Chain.

Market size

The market for BNB covers users on the Binance exchange and anyone who wants to transact or build applications on Binance Smart Chain.

Regulatory risks

There is a chance that exchange-issued tokens could be classified as securities. Until today, however, no such classification has been put in place.

Average Market Score

Average the six scores above

Competitive Advantage

Technology/blockchain platform

Originally built on the Ethereum blockchain, BNB now has its own chains, explorers, and wallets.

Lead time advantage

While Binance was one of the earliest exchanges to have its own token, many exchanges are now following suit, which has evaportated much of the advantage that it one enjoyed.

Contacts and networks

As one of the most popular digital coin exchanges in the world, it's safe to say that Binance has access to key players in the industry.

Average Competitive Advantage Score

Average the three scores above

Management Team

Entrepreneurial Team

Binance Coin has an excellent leadership and entrepreneurial team leading the way.

Industry/technical experience

With Changpeng Zhao and Roger Wang, Binance definitely meets the

Integrity

Integrity is a mixed-bag for Binance Coin. On the plus side, the exchange is one of the most popular and well-known options in the world of digital assets. That doesn't happen without some amount of honesty and transparency. However, regulators have been targeting Binance as the company has deployed a decentralized operational model, which could give the impression that they are trying to skirt around regulations.

Average Management Team Score

Average the three scores above

Token Mechanics

Token required

BNB provides value to Binance Exchange users and is required to access DApps and process transactions on Binance Smart Chain.

Value added

Binance coin adds value by giving users on the Binance platform a way to minimize trade fees. Additionally, it allows anyone to interact with the fast-growing world of DApps on Binance Smart Chain.

Decentralized

Both Binance Chain and Binance Smart Chain don't have the same level of decentralization as Bitcoin, for example. Additionally, most BNB are held in client accounts in the Binance exchange.

Token supply

Binance has a quarterly burn of its BNB coins, which positively impacts the price of the coin over the long run.

Public exchange

Binance Coin can be found on Binance, KuCoin, HitBTC, and other exchanges.

MVP

Binance coin is already in use on the Binance exchange and on its two chain, Binance Chain and Binance Smart Chain.

Average Token Mechanics Score

Average the six scores above

User Adoption

Technical difficulty

Binance Coin attracts users through the appeal of discounts when trading digital assets on their platform and for individuals looking to explore DApps on Binance Smart Chain.

Halo Effect

Binance Coin works closely with other projects and companies.It's an integrl part of the gigantic Binance ecosystem.

Buzz

Binance has over 1 million followers on Twitter and its CEO has nearly half a million.

Average User Adoption Score

Average the three scores above

Overall Score

Weighted Average of the five section scores above

Blockchain Investor Analysis

Binance Coin was launched by leading digital asset exchange Binance to enable its users to receive trading fee discounts. Today, Binance Coin runs on two blockchain, Binance Chain and Binance Smart Chain, and has established itself as one of the most popular digital assets in the market.

Subscribe to Bitcoin Market Journal to stay up-to-date with the latest developments in digital asset markets.

Blockchain Investor Analysis

Market

Problem that it solves

TBD

Customers

TBD

Value creation

TBD

Market structure

TBD

Market size

TBD

Regulatory risks

TBD

Average Market Score

Average the six scores above

Competitive Advantage

Technology/blockchain platform

TBD

Lead time advantage

TBD

Contacts and networks

TBD

Average Competitive Advantage Score

Average the three scores above

Management Team

Entrepreneurial Team

TBD

Industry/technical experience

TBD

Integrity

TBD

Average Management Team Score

Average the three scores above

Token Mechanics

Token required

TBD

Value added

TBD

Decentralized

TBD

Token supply

TBD

Public exchange

TBD

MVP

TBD

Average Token Mechanics Score

Average the six scores above

User Adoption

Technical difficulty

TBD

Halo Effect

TBD

Buzz

TBD

Average User Adoption Score

Average the three scores above

Overall Score

Weighted Average of the five section scores above

Comments are closed.