Crypto Research Report: Binance (BNB)
Binance (BNB) Research Report PDF Here: https://coinonomic.com/wp-content/uploads/2018/03/Crypto-Research-Report-BNB-BUY.pdf
What does this crypto do?
BNB holders can use BNB to receive a 50% discount in trading fees on the Binance exchange
Why is this crypto unique?
In addition to reducing trading fees, Binance uses 20% of quarterly profits to burn the remaining supply. The coin burns will continue until 50% of the total supply is burned (100M BNB). Assuming Binance maintains its volume and reputation, then the decreasing supply will drive the price upwards over time. Also, the top BNB holders are periodically awarded with incentives and airdrops, such as the March 2018 ENJ airdrop.
Rating
We rate BNB a 4 / Buy for all Binance traders that specifically intend to use BNB to reduce trading fees. In addition, Binance offers additional incentives for BNB holders, such as the quarterly coin burn, periodic airdrops, and future use-cases with Binance sister companies and other partners. As long as Binance remains a leading global cryptocurrency exchange, BNB has the potential to massively appreciate over the long-term.
Investment Highlights
- The CEO is well respected around the world and has done several interviews with Bloomberg and other major media outlets
- BNB can immediately reduce trading fees by 50% and Binance has plans to add additional use-cases in the future
- BNB can naturally increase in price due to quarterly coin burns
- Binance is aggressively adding new coins that were previously only on small exchanges (i.e. NANO & NEP-5 coins)
Investment Risks
- Significant competition against decentralized exchanges, no-fee exchanges and potential projects such as FairX and WorldBook
- If Binance has significant issues (hacks, scams, regulations) then BNB will almost instantly drop in value
- Binance does not have a fiat gateway (and likely never will), which may reduce its competitive advantage over the long-term
Competition
- Kucoin: the major incumbent in the fee split crypto segment (KCS). Kucoin rapidly grew in popularity by adding unique coins, but still has not proven that it can handle the same level of traffic as Binance
- Huobi: one of Binance’s largest competitors with a similar fee reduction crypto (HT)
- Coss.io: a small exchange with a 50% fee split crypto (COSS)
Market Sentiment
- Binance recently had a third-party API hack incident which caused massive FUD in the community. CZ (the CEO) was communicative and open, and ultimately protected all traders’ funds. Actions such as this, have established Binance as the number one global exchange
- Binance has terrible policies regarding withdrawals and dust
- Binance recently added NANO, and is planning on adding several NEP-5 coins soon, which will likely cause a surge in volume
Price History
Disclaimer: At the time of writing, several team members at Coinonomic own positions in the cryptocurrency. We are not directly affiliated with the Company and we are not receiving compensation for this research report. We are not financial advisers and this does not constitute investment advice.
Posted from my blog with SteemPress : https://coinonomic.com/crypto-research-report-binance-bnb/
Binance is the fastest unicorn in history, that says a lot abiut them. And, if you trade on Binance, it's a no brainer to hold BNB, you get a huge advantage. If Binance continues on its current path, the future will be bright for BNB.
I completely agree and CZ's communication gives me a lot of confidence in the long-term viability of the exchange. Although, not having a fiat gateway could be a big problem in the future.
Yes, agreed, not having fiat and not allowing shorting are the biggest drawbacks in my opinion. But they are smart, I can see them innovating somehow in the future. If they just improve their tools to make it easier for traders it is already a big deal. All crypto exchanges are still quite average, clunky to use.
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