Most of us are familiar with exchange tokens such as Binance’s BNB and Kucoin’s KCS, but what makes each token unique? How do the token models differ from those of other exchanges? How do you value these tokens? What gives them utility? The CoinFi crypto experts dive deeply into this topic in this episode of the CoinFi Podcast.
It’s a question that everyone has an opinion on, yet has no definitive answer--is Ethereum overvalued? CoinFi’s Chief Data Scientist Alex Svanevik and co-founders Tim Tam and Han Chang dig into and attempt to answer this burning question in this episode of the CoinFi Podcast.
Institutional traders are renowned for being good at what they do--they are professionals, after all. So what is it that separates them from your typical, everyday cryptocurrency investor? Is it their strategy? Their mindset? CoinFi’s CEO Tim Tam and Head of Crypto Research Jonney Liu share their professional trading experiences and insight in this episode of the CoinFi Podcast.
We all know what can happen to the stock market during a global recession, but what happens to the cryptocurrency market, specifically Bitcoin’s? Are people drawn to it as a store of value? Does it mirror traditional markets? CoinFi’s junior product manager Wayne Lam and co-founders Tim Tam and Han Chang explore these questions and more in this episode of the CoinFi Podcast.
HONG KONG - July 11, 2018 - CoinFi (KuCoin, Cobinhood: COFI), the leading market intelligence platform offering Wall Street-caliber trading tools, signals, and analysis on the cryptocurrency market, today continued to strategically extend its reach and coin availability with a listing on Fcoin, the China-based exchange known for its transactional mining model and high trading volume. The announcement follows a $15 million ICO and listings on KuCoin and Cobinhood earlier this year. Investors can begin trading COFI on Fcoin July 11 at 6:00PM HKT. COFI, a utility token, grants CoinFi users access to news, analysis, and hedge-fund caliber trading tools on the CoinFi platform. It’s also used to compensate research contributors and analysts in a token-for-information ecosystem, with the highest-quality contributors rewarded more frequently by the crowd.
Here’s an unfiltered look at the first half of 2018 - both at the progress we’ve made, and the setbacks we’ve had, and what you can expect from us going forward.
Reflecting on the First Half of 2018LinkedIn founder Reid Hoffman once noted that building a startup is a lot like jumping off a cliff, then assembling an airplane as you’re hurtling towards the ground. In assembling that airplane we’ve had some setbacks, but we’re still very far from hitting the ground. With the benefit of hindsight, there are a few key things we could have done better in the first half of 2018. We’ve learned from those mistakes and have taken steps to make the second half of 2018 a big one for the CoinFi platform.
It’s the hottest exchange in town, and you’ve likely never heard of it. It currently has the highest transaction volume in the world, and it’s not even listed on CoinMarketCap.com.
The Rise of FCoinFCoin, the China based exchange set up by the former CTO of Huobi, Zhang Jian began trading in early May. It has seen a meteoric surge in volume over the last two weeks. None of this is captured yet by major data outlets, since most of them such as Coinmarketcap.com have yet to add their data feed to their sites. And it truly is meteoric. You can see for yourself from a snapshot of last 24 hour $volume traded from their website below.
HONG KONG - June 25, 2018 - CoinFi, the leading market intelligence platform offering Wall Street-caliber trading tools, signals, and analysis on the cryptocurrency market, today announced its coin listing on Cobinhood, the zero-fee cryptocurrency exchange offering free spot and margin trading. The announcement comes after a successful ICO earlier this year in which CoinFi raised $15 million in a private token sale to further develop its lineup of trading and analysis tools and build out its in-house and crowdsourced crypto news ecosystem. Already trading on the KuCoin exchange (COFI:ETH), CoinFi’s listing on Cobinhood expands its reach and availability to the trading community. The team predominantly comprises former elite Wall Street traders, technologists, data scientists, and financial analysts, and the company has plans to roll out trading signals and advanced token metrics - among other tools - later this year.
Previously, we’ve analyzed crypto exchange tokens using the TVEV ratio - token value / exchange volume . The TVEV ratio compares the price of an exchange token to the traded volume on the underlying exchange. Conceptually, it’s not too far away from the P/E ratio which is often used when valuing equities. After our last post, many of you reached out and asked us to analyze a wider array of exchange tokens, beyond just Binance Coin, Huobi Token, and KuCoin Shares. So, in this post we’ll have a broader look at centralized exchange tokens. If you’re waiting for our analysis on decentralized tokens (such as 0x, Bancor, and Kyber), do not despair - we’ll share that one soon as well.
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.