Blockchain Investor Analysis

Binance coin logo

Binance Coin

BNB
Current Price $30.69 (-0.08%)
Binance Coin was launched by leading digital asset exchange Binance to enable its users to receive trading fee discounts. Today, Binance Coin runs on its own blockchain, Binance Chain, and has established itself as one of the most popular digital assets in the market.

Our Rating:

Market

Problem that it solves

BNB solves the problem for exchanges that want to encourage users to return to their platform. Users receive 50% off their trade fees when using the BNB token.

Customers

Customers of BNB coin will be those who buy, sell, or trade digital currencies on the Binance platform.

Value creation

Users can perform transactions on the Binance platform and only pay half price for fees when using BNB. However, these transactions are only available on the Binance platform and will not translate to other exchanges.

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. However, this market is also concentrated to those who use Binance for their digital currency needs.

Market size

The market for BNB is currently limited to users on the Binance ecosystem.

Regulatory risks

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

Average Market Score

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Competitive Advantage

Technology/blockchain platform

Originally built on the Ethereum blockchain, BNB now has its own chain, explorer, and wallet.

Lead time advantage

While Binance was one of the earliest exchanges to have its own token, many exchanges are now following suit, which has evaporated 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

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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 '10,000 hours' of experience in the industry.

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, there have been accusations of Binance 'skimming' off the top of listing fee donations, which puts Binance in a bad light.

Average Management Team Score

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Token Mechanics

Token required

While BNB does provide good value, it may not be totally necessary. There are other methods that can be used to provide trading discounts to users.

Value added

Binance coin adds value by giving users on the Binance platform a way to minimize trade fees.

Decentralized

Binance Chain does not 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.

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.

Halo Effect

Binance Coin works closely with other projects and companies, such as PundiX and Chainlink.

Buzz

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

Average User Adoption Score

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Overall Score

Weighted Average of the five section scores above

Blockchain Investor Analysis

Binance is one of the most promising startups in the digital asset industry with a valuation in the billions. Unsurprisingly, therefore, its token, Binance Coin, has also established itself as a leading digital asset in the market today.

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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.