In the last 2 years, much of which has been a bear market for crypto-assets, there’s one crypto project that has been invincible. Compared to market peak value in 2017, it has lost only about 15% value through the bear market in USD terms while it has gained 30% value in BTC terms. I can say with certainty, that it is one of the few, if not only, crypto-assets to gain value in BTC terms during the bear cycle.
In the last 10 quarters, the parent company behind the project has posted nearly a billion dollar in profits. While the founder of the company is worth over $2 billion. I’m talking about Binance, and the crypto token is $BNB.
The thing about Binance is that it is a market leader crypto exchange with more trading volume than any other exchange. $BNB, which is Binance’s native token has a maximum supply of 200 million tokens. Of this, 100 million tokens are meant to be burnt or destroyed every quarter based on the revenue generated by Binance. This causes the supply to constantly decrease therefore increasing the price per token. In my opinion, this is the dividend equivalent of stocks in crypto-sphere.
So far Binance has burnt ~17 million tokens in 10 quarters. As mentioned earlier, they plan to continue burning tokens until 100 million tokens are destroyed. At this pace, it would take 58 quarters or 14.5 years before Binance is able to burn all 100 million tokens. And as more and more tokens are burnt, the price per token will constantly be rising.
Moreover, crypto trading has continued to happen as usual despite the bearish sentiment. As the time keeps passing by, trade volume flows between different coins and different pairs, but the trading goes on as usual. This is evident and can be seen in Binance’s case where trade volume and coin burn continued happening and Binance kept posting profits month over month despite the bear market.
While there’s uncertainly surrounding every other crypto project regarding price, speed, reliability, tech, SEC, FinCEN, FATF etc, the fate of most crypto projects is unclear. But as investors continue to bet on and trade one of these projects, Binance wins. And regardless of whichever project(s) come out to be the winners, Binance still wins.
Disclaimer: The information provided is for informational purposes only. It should not be considered legal or financial advice. To the maximum extent permitted by law, I disclaim any and all liability in the event any information, commentary, analysis, opinions, advice and/or recommendations prove to be inaccurate, incomplete or unreliable, or result in any investment or other losses.
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I bought it for $5. It’s worth $16 at the time or writing.