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.
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.
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:
- Which coins are mentioned the most in the CoinFi News feed?
- What are some coins that have been experiencing an increase in mentions lately?
- How does number of news mentions correlate with trading metrics, in particular transaction volume?
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.
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.
Wayne Trench, CEO of Octagon Strategy, the 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.
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.
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.