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.
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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.
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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
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.
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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
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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.
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Overall Score
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