Valuing BNB Token: How Binance Could 2X BNB Coin Value Overnight

In a previous CoinFi research analysis written by our very own Chief Data Scientist Alex Svanevik, we compared various exchange tokens using TVEV ratio, discovering that there is a simple model we could use to assess whether or not an exchange token is priced fairly in relation to other exchange tokens. In this post, we will attempt to value the Binance exchange token (BNB coin) from a cash flow perspective. The reasons for CoinFi’s fascination with exchange tokens are:
  • The utility/token economics are generally well defined, making them easy to understand and value.
  • Exchange tokens as a whole (especially Binance) have been widely used, circulated, and battle tested. Several of them have even had a series of buybacks.
  • Despite the recent sell-off in crypto, exchange tokens have held up quite well, as shown in the graph below.

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What Are the Hottest Cryptocurrencies on The Market? An Analysis of 60,000+ News Articles

We’ll soon be launching the CoinFi News feature, where you can be the first to know the news that moves the crypto market. While we’re still busy putting everything in place for the launch, we thought we’d give you some insights from the data that underlies our News feed. In this post, we’ll look at:
  1. Which coins are mentioned the most in the CoinFi News feed?
  2. What are some coins that have been experiencing an increase in mentions lately?
  3. How does number of news mentions correlate with trading metrics, in particular transaction volume?

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CoinFi News Coming Soon & The Team Continues to Grow

It’s been an exciting month at CoinFi, with both the in-person and remote teams growing rapidly, and product development accelerating. This past month we continued to focus on recruitment and developing the features scheduled for release this summer. We’re excited about the feature rollouts we have coming up, and by the time fall comes around, we expect that CoinFi will finally leave the beta stage behind.

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The Value of Exchange Tokens: Comparing Binance, Huobi, and KuCoin

TVEV Ratio Days YTD 2018
In many ways, exchange tokens are among the most straightforward token models out there. The Binance Coin (BNB) gives you a 50% discount on your Binance transaction fees. To compare this with something a bit more tangible, many cities have a pretty similar system for public transportation. Buy a card with 10 metro rides up front and you’ll get a 10% discount. The most obvious difference between your metro card and BNB tokens in your wallet is that BNBs have a capped total supply.

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Token2049 – CoinFi Interview with Wayne Trench, Octagon Strategy CEO

CoinFi Interview with Wayne Trench
Wayne Trench, CEO of Octagon Strategythe largest digital asset brokerage in Asia, is fascinated by the creative minds that are working on disrupting traditional industries with blockchain, with tokenization. Wayne also thinks that professional money managers like family offices have started adopting the crypto market in 2018. Followed by proper regulatory frameworks in place, institutional demand will come in the future. Watch our interview with Wayne at Token2049 to learn more. 

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How We Earned 31% Profit by Buying Bytecoin (BCN) on HitBTC & Selling on Binance

Bytecoin Binance Listing
Bytecoin (BCN) listed on Binance (BNB) yesterday - arguably the leading exchange in the world, and the price & volume effect was staggering. In a day where Bitcoin (BTC) traded in a 2.7% range, the action in BCN was certainly a stark contrast. Prior to the listing, BCN was hovering around $0.007 (0.7 cents), which implied a market cap of $1.28 billion based on the coin supply of 183.88 billion. And when the listing started, the price went bananas, as you can see in the Binance market chart below.

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How Many Investors HODL Post-ICO? A Look at Token Retention

Token Retention-3
One of the beautiful things about Ethereum is that every single transaction happening on its blockchain is open to the world. From a data perspective, this means that there is an abundance of interesting analyses we can perform, and insightful metrics we can calculate from these transactions. In particular, one area that has not yet received much attention yet is token retention - that is, what % of wallets hold onto their tokens over some time. Given the popularity of “HODL”, it’s quite surprising that we haven’t seen many hard metrics on token retention yet (although Dhruve Bansal did perform an excellent piece of analysis on Bitcoin’s “HODL Waves”). After all, the transactional data of ERC20 tokens are readily available for us to study. Dealing with Ethereum data is not exactly plug-and-play, but at CoinFi we ingest these transactions as a part of our data warehouse, allowing for easy access and analysis. But before digging into the data, let’s look at how we define retention.

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Did Bitcoin Hit Rock Bottom? Here’s A Potential Timeline For Recovery

Did Bitcoin Hit Rock Bottom

Summary:

  • We just experienced/witnessed the 3rd largest Bitcoin drawdown of -65.81% from the highs.
  • In absolute dollars, this is the largest drawdown in Bitcoin history.
  • The current price rut also happens to be the slowest sell-off we have ever faced.
  • Bitcoin took on average 1.5x more days to recover to the previous highs than the NASDAQ Composite did during the tech boom.
  • Based on the “Recovery to Trough Ratio” of 1.69 and 111 days peak to trough for the current drawdown, it may take another 188 days from the low (not until mid-October 2018) before we might near the $20K level again.
  • Bitcoin drawdowns are sharper and faster than drawdowns during the NASDAQ tech bubble, but also take a shorter time before we reach a new peak.

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