Phenomenon of BNB (Fundamental analysis BNB/USD)

[Tytanowy Janusz]

Cryptocurrencies market is the hardest to estimate. There is no fundamental analysis here - such indicators P / E (price earnings ratio) P/BV (price to book value), because everything is at the start-up stage, the functioning of which we will only see in the distant future if the team won't scam us, if no one will develop similar project faster, if no one will invent better product that will make our coin useless, if ... if ... The market is blindly trying to include project prospects, risk, market condition and various of other indicators in the price. Most often market is so confused that it blindly accepts any existing price, because if ... if ... if ... if will happened than this token will take over the world and will be worth even 100x more. But there are more than 10,000 such tokens and only 1 will rule the world. So a moment later, there is a dump and another group of investors becomes bagholders.

Phenomenon of binance and BNB coin:

Binance is currently worth $ 2.4 billion (15.6 $ per token). Let's try to do the fundamental analysis of BNB just like with regular share on stock market (someone ever did that with cryptocurrencies? Is there any other cryptocurrency for which such analysis is possible to do with actual data not prediction about the future performance if.... if.... if...? - the phenomenon of binance - the first coin for which it can be done!)

The volume on binance reaches $ 2 billion a day (spot/margin/futures). This is the value I believe in (it is not inflated by fake trades such as on bitferox). This means that binance's daily income is equal to 0.075% of $ 4 billion (2 billion in transactions means that it was bought for 2 billion and sold for 2 billion and the commission was paid by both sides) = $ 3 million / day = $ 1.1 billion / year. How much can they spend on servers, employees and marketing? I have no idea. Those data are not available.
I estimate $ 300 million? This gives 800 million gross profit. $ 600 million net profit after tax (first estmiate - probably with a big mistake).

This gives us P/E ($ 2.4 billion/$ 600 milion = 4)

This is the first estimation and I must admit that it is amateurish. So I found a slightly more accurate way to evaluate the binance earnings:




The average of the last 8 burns is $ 25,7 million. That is $ 103 million burned annually. What % of profit is that? Whitepaper is silent. I asked the admin of the Polish telegram ...



He replied that until recently this information was in the whitepaper, but it was removed and the value I am asking for is 20%.

So we are saying about $ 515 million of pure profit.

This gives us P/E ($ 2.4 billion/$ 515 milion = 4,66)

The average P / E for nasdaq companies (probably the best comparison, because they are the most popular technology companies) is 20! This means that if BNB were listed on nasdaq, its price should increase 4,3 times.  https://www.nasdaq.com/symbol/ndaq/pe-ratio

The average P / E for S & P500 companies is 22. https://www.multpl.com/s-p-500-pe-ratio/table/by-year

This means that BNB FUNDAMENTALLY is undervalued.

Add to this that nasdaq does not offer:
-25% discount on the company's services for share holders (commission reduction)
- special additional offers for share holders (launchpad/vote for community coins and others acticvities that provides passive income)
-the promised purchase and destruction of 50% of all shares (200 million were created - 100 million were initially promised to be burned. Although there is a dividend, but the average for nasdaq is 1.1% , and binance buys annually for around 3%.
-binance coin is also a blockchain system with more than 80 projects

link
Just remember that BNB are not binance shares, but coin. In addition P/E is only one indicator that i based my anylysis on

I'm not saying to take BNB blindly. But it's definitely worth looking for technical long-term entries, because we are fundamentally at 1/4 of the price you pay on nasdaq for companies with similar profits.

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[ansi]

BNB is one of the best to have some of it into your portfolio, this is something to be taking into consideration for long term investors.

I said it once in some telegram group i'm in that this coin is gonna be an easy $50 - $100 coin sooner or later (this was when it was $8 coin & then reached the $35+).

Binance is taking the big chunk of the cryto market exchange business, sooner the fiat to crypto niche & who the hell knows what's next (may be some crypto card too).

Binance is taking this exchange evolution into the next level & trying it' best to legalize it even in the hardest financial law countries (like the USA).

Your fundamental analysis is just so perfect & does make 100% sense that this BNB coin is one of the best that any smart investor should have it n his long term investment plan.

[Tytanowy Janusz]

Lets continue the analysis of BNB fundamentals. We know that it is undervalued based on P/E indicator. That makes it good long term investment product. Now i'll try to show you that it is the best coin to invest in if you are looking for POS coins to set masternode.

Holding BNB allows you to take part in various activities (launchpads, vote for community coin etc.)



I have dumped to BTC every token right after airdrop.
JEX ~ 5$
BNB ~ 17$
NKN ~ 16$
KAVA ~ 20$
IOST ~ 0.5$
CTXC ~ 22$
QTUM ~ 0,6$
TROY ~ 400$ - 200$ investment= 200$ profit
VITE ~ 19$

SUM = 300$ ~ 20 BNB - That's a return from holding 200 BNB for 2 months. 10% return in 2 months - 60% annually

So why is BNB the best coin to invest in while looking for coins that bring passive income (masternode coins)?

1- BNB is fundamentally undervalued
2- BNB is top 10 CMC - big coin emitted by market leader
3- BNB has one of the largest annual ROI from top 100 CMC (DASH 6%, NRG 57%, Nuls 10%)
4- min investment to take part in all activities is 50 BNB -750$ (DASH 49 000$, NRG - 19 000$, Nuls 5600$)
5- Most MN coins supply grow with every block minted. If you are stacking those coins you are increasing your portfolio but total supply is growing too. No one is taking this into consideration. People see 10% annual return but they dont see 6% inflation what sum to (in simplified terms 10%-6%=4%) 4% annual return. BNB's supply is decreased every quarter with coin burn.
6- To cash your income you need to dump coin that you are stacking (that dumps price). If you are stacking BNB you are not dumping BNB to cash your income. You are dumping bunch of shitcoins.

[masterrex]

I think that was cool explanation about Binance coin (BNB) profitability. despite that more and more accusation that was throwing against the well known cryptocurrency exchange but still look at how binance was thriving comparing to its competitor. BTW its just my opinion since im also using some of the binance competitor so no hard feelings. i'm on the neutral side.

[Tytanowy Janusz]

I think that was cool explanation about Binance coin (BNB) profitability. despite that more and more accusation that was throwing against the well known cryptocurrency exchange but still look at how binance was thriving comparing to its competitor. BTW its just my opinion since im also using some of the binance competitor so no hard feelings. i'm on the neutral side.

More and more accusations? I didn't hear about even a single accusation against Binance. In my opinion, based on 2 year experience on binance and more than couple milions $ trading volume (i'm day trader) Binance is the most trustful and professional crypto exchange.

[Tytanowy Janusz]

P/E is calculated based on full year performance. 2019 is behind us together with 10th BNB burn so i think it is good time to recalculate OP:



Annual burn - 114 938 000$ that gives us 574 690 000$ annual profit. (it is also worth to notice that it is fourth consecutive quarter with growing profit even though 09-12 was quite boring (bitcoin was locked in 7-10k consolidation))
That gives us P/E = 2 663 898 813/574 690 000 = 4,63

And estimated value if P/E was equal to S&P500 average (22) 12 643 180 000 (+375% potential grow)

It is also worth to notice that in 2018 binance annual profit was equal to 447 mil $ (so we have 28,5% annual performance increase)

[Tytanowy Janusz]

Another gamechanger from binance.

Introducing the Binance Card: Shop and Pay With Crypto Anywhere in the World

1-undervalued based on FA (now even more with current historic high volume and dump to $2 bil marketcap)
2-better passive income than any other staking coin
3-and now mass adoption leader

I know i sound like i was paid to say that but i'm not. IU'm just so in love with this exchange and how it change crypto space.

[Tytanowy Janusz]

Breakthrough allert.
Binance just broke resistance and was not higher since covid panic sell in March 2020.

BNB token burn is comming (2-6 days left - accouncment is close to the fifteenth day of the month preceding the end of the quarter) and in my opinion it will be higher than ever based on BTC volume on binance.



That's last token burn.


4 000 000$ worth BNB burn is my lucky guess.

[Tytanowy Janusz]

Still being fascinated by BNB, I managed to cross the threshold after which I am in possession of a reflink with 20% kickback (20% commission returns to the user recommended by me) - pretty rare code because you have to lock big chunk of BNB. As I cannot post it directly here (bitcointalk rules about reflinks), please feel free to write me a PM. Just create a new account on binance using my code to enjoy lower commissions on each transaction.

[timmmers]

Binance coin is for sure an interesting coin, it doesn't promise use, it is already used on the biggest crypto exchange. Binance regularly burning tokens from the company's profit. Plus now they developed its own chain and focus more on a decentralization .

[Tytanowy Janusz]

Binance just launched smart chain - as CZ said - perfect for defi - damn they really want to suck as much money from DEFI hype as it is possible. They are already listing up to 20 new coins each month (most of them are defi).

Few interresting quotes from announcment:
Binance Smart Chain communities are wrapping up to release many handy tools this month, for functions such as token issuance and transfer, BNB staking, and dApp creation and usage. Please stay tuned!"

"Even before the mainnet launch of Binance Smart Chain, numerous crypto projects are already working with the Binance Chain community to help make BSC a robust blockchain platform.

Here are some of our collaborators:

- Blockchain Infrastructure and Tools: ChainLink, Band Protocol, Trust Wallet, Ankr, BSCScan, Bitquery.io, MathWallet, MyWish, CertiK, Torus

- DeFi: Swipe, Aave, 1inch.exchange, WazirX, DODO, dForce, Bounce.finance, Spartan Protocol, MCDEX, Cream, ForTube, DeBank

- Cross-Chain Liquidity: RenVM, pNetwork, Thorchain, Ferrum.Network, Alpha Finance

- Others: Dapp.Review, Ontology, Travala.com, Republic.co, Clutch, BCA, Ignite

We’ll share more about these collaborations soon."

" It also introduces an all-new staking mechanism for BNB,"


links:
https://www.binance.org/en/blog/binance-smart-chain-mainnet-launch/
https://www.binance.com/en/blog/421499824684900933/Binance-Smart-Chain-Launches-Today?utm_source=BinanceTwitter&utm_medium=GlobalSocial&utm_campaign=GlobalSocial

[Tytanowy Janusz]

Binance has another 2 products that i was not talking about yet and generated passive income.

1- Its airdrop for BNB hodlers (SPX currently - https://www.binance.com/en/support/articles/dfbc98a7b0da4fab872a25d74ceeb9d1 but it's planned to be expanded to other cryptos) - I recived around 0,055% weekly (dumping SPX to BNB right when i get it) - this sum up to 3% annual ROI.

2- Launchpool - new type of IEO but you don't need to invest. You are "harvesting coins" for stacking BNB. After first day (out of 30) i received 0.03% in Bal token (if price after listing will be equal to priv-sale price - most often with binance IEOs its x1.5-x15). This sum up to 11.5 % annual ROI (17-170% based on previous IEO performance after listing)

So based only on these 2 new BNB utilities its 14.5% estimated annual ROI. And we still have IEO, coin voting, lending (0.2% annually), coin burns (5.5% annual less in supply), and delegating soon to be released.

BTW. Next announcment is comming - https://twitter.com/binance/status/1303724926835273731

[grabpopcorn536]

BNB is one of the best to have some of it into your portfolio, this is something to be taking into consideration for long term investors.

I said it once in some telegram group i'm in that this coin is gonna be an easy $50 - $100 coin sooner or later (this was when it was $8 coin & then reached the $35+).

Binance is taking the big chunk of the cryto market exchange business, sooner the fiat to crypto niche & who the hell knows what's next (may be some crypto card too).

Binance is taking this exchange evolution into the next level & trying it' best to legalize it even in the hardest financial law countries (like the USA).

Your fundamental analysis is just so perfect & does make 100% sense that this BNB coin is one of the best that any smart investor should have it n his long term investment plan.

CZ has more plans for people to buy more BNB. Since the launch of the Binance exchange, the BNB token has helped people reduce transaction costs, followed by the IEO program, holding BNB to receive the SXP airdrop, and they are currently launching DEFI to compete with other projects.
It is CZ's creativity that has created value for BNB, of course in the present BNB is still worth investing.

[Tytanowy Janusz]

CZ has more plans for people to buy more BNB. Since the launch of the Binance exchange, the BNB token has helped people reduce transaction costs, followed by the IEO program, holding BNB to receive the SXP airdrop, and they are currently launching DEFI to compete with other projects.
It is CZ's creativity that has created value for BNB, of course in the present BNB is still worth investing.

Funny thing with me and BNB is that BNB is my biggest ALT bag. Today i see that it pumped +30% in last 5 days ... i should be excited, and I am ... but than i realize ... so what? You ain't going to sell anyway. It's priced at P/E = 2.9 - average for nasdaq is 22.5 so its 7.7 times cheaper than average nasdaq company (with same annual profit) and yields more than 50% annual passive quantitative ROI for investors while remaining deflationary (it makes it fundamentially an global scale investment opportunity, not just inside cryptocurrencies. I did't see anywhere a investment that stronger based on FA i extra ROI). It simply not worth to sell at current price. Even 3x pomp won't change that, maybe 10x. So i'm sitting on my bags and I guess nothing will change in next couple months/years. Just taking part in IEO and other activity and cash it back to BNB.

[Tipstar]

With the change of rice in bnb itself, the fees is not exactly discounted everytime. As well binance plans to decrease that fee discount gradually dropping it to zero. After that all remains would be it's use in IEO and dex. I know bnb token would be a success if binance continues to lead the market but I wouldn't call the current price a good catch considering the number of good options crypto world brings.

[Tytanowy Janusz]

I wouldn't call the current price a good catch considering the number of good options crypto world brings.

Name 1 that is fundamentially better. Link f.e. is just an oracle worth 5 bilion $. How much informations should it process to generate over $ 1.5 billion in profit (to compete with BNB P/E). ETH will explode much earlier with such traffic. How much profit should companies that use this oracle generate so they be able to afford to spend $ 1.5 billion only for oracle? This infrastructure will take decades to build, and in the meantime, many better "LINKS" will be built. Same with many other projects. They are worth bilions generating few k in profit (or even huge loses) now but with big dream about next 100 year performance. I'm not buyng that.

Name 1 that has a working product that generate bilion dolars in profit annually (profit ... not income). That is not only a promise of future performance because 99.99% of crypto is just someonce dream that only generate coins and dumps on investors promising to develop and deliver product somewhere in the future.

As well binance plans to decrease that fee discount gradually dropping it to zero. After that all remains would be it's use in IEO and dex.

Agree:


But.. It was 12.5 % in third year but binance made an announcement that they continue to support higher fee rebates for another year. I think that they will not resign from this major BNB use case even if they can. Its 2 months after 2020/07/13 (4th year just started) and rabate is still 25% not 6.75%

[Kotone]

Binance coin is for sure an interesting coin, it doesn't promise use, it is already used on the biggest crypto exchange. Binance regularly burning tokens from the company's profit. Plus now they developed its own chain and focus more on a decentralization .

It is. Among exchange tokens I like this one is the most comprehensive with terms of method and marketing. Most of their activity on the website usually designed with the usage of their coin like ieo, launchpool, and many more. This is how you preserved value on the coin you own. I hope all exchange works like this, so bnb has vastly have future.

[Tytanowy Janusz]

2- Launchpool - new type of IEO but you don't need to invest. You are "harvesting coins" for stacking BNB. After first day (out of 30) i received 0.03% in Bal token (if price after listing will be equal to priv-sale price - most often with binance IEOs its x1.5-x15). This sum up to 11.5 % annual ROI (17-170% based on previous IEO performance after listing)

I was right in the point. ROI from launchpools fluctuates exactly from 17 % to 170 % (depends on how aggressive first day of trading was). Few days after listing, the ROI stabilize at 22%. Thats a decent amount because we still have launchpads (sometimes even combined lauchpads with lauchpools), other activities, and coin is deflationary thanks to BNB burns.

Back to BNB burns. According to today's tweet from CZ Q3 BNB burn is planned for tomorrow. I think it will be another record because Q3 was DEFI hype quarter. Huge volumes. For example UNISWAP during listing had bigger volume than bitcoin. Whats your predictions?


Thats the previous burn:

[Stavri]

We can compare bnb price with ethereum. Ethereum was the main platform that provides blockchain solution for the icos in 2017 and 2018 during that bull run. And it could reachover 1k usd because of that ico hype. Now ieos and launchpads are much more popular comparing to icos. So i think binance holders can make really good profit in next bull market.

[Tytanowy Janusz]

Just like I said. Even though BTC volume was very low (mostly because of being stuck in 9-10k and 10.5-12k consolidation) binance managed to get another profit record thanks to huge volume caused by defi pumps and dumps.