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Tag: Binance

One Crypto Project That Everyone Should Watch Out For

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.

The Invisible Indexes Everyone Should Be Paying Attention To

A few weeks ago, I spoke of the benefits of building lazy portfolios that you can do so by buying certain indexes. That seems to be a good strategy at least while the over-all market is growing and not going through the bearish sentiment.

There are other types of indexes that we often can’t see. They are hidden in plain-sight and I think we all should be paying attention to them.

Yesterday, Saad RT’d this. And I couldn’t agree more. Both with the original tweet and Saad’s comments.

Stripe is a really great company and despite being a fintech company, it’s really open and inclusive. Fintech companies are driven by mega regulations and can struggle with innovation. And considering that, Stripe’s openness is a surprise for me.

Off to the original tweet, Stripe is not just innovative and inclusive, it’s also an index. It’s an index of all internet commerce companies collectively powered by Stripe. Have a look at how Stripe has grown over time

Shopify could also be an index like that. And as investors we should be paying attention to these indexes.

In the crypto sphere, Coinbase could be an index. However, since only private investors could participate in Coinbase’s growth and the IPO hasn’t happened yet, the retail investors can not buy that index yet. But there’s 1 crypto index, that you could still be buying, at your own risk of course. A few years ago I tweeted about it

$BNB is a native token of Binance which is one of the largest crypto exchanges in the world. And despite what direction crypto markets move in, Binance always makes a profit. And as $BNB holder, you can be party to that.

At the time of my tweet, the total market capitalization of all crypto assets collectively valued at $381 billion dollars. Today the collective market cap is $216 billion dollars which is almost 45% lower.

Combined market-cap of all crypto-assets on 13th March 2018.

BNB’s market cap at the time of my tweet was $814 million dollars. Today the market-cap stands at $2.2 billion dollars. BNB has posted growth of 2.7x despite the over-all performance of the crypto-market.

$BNB’s market-cap on 13th March 2018.

So watching out for these proxy indexes can be a relatively safer way to grow your investments.

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.