Why do we think this project is great in a nutshell?
Binance Coin (BNB) is the token of Binance, a well known exchange. With BNB you can pay for any fee, such as exchange fees, withdraw fees and listing fees on the Binance platform. Because the total market is growing rapidly, more and more people are using BNB to pay for the exchange fees. Therefore the price of BNB soars when the total market grows (more people buy crypto's, so more people use BNB). With this in mind BNB is a cryptocurrency with low risk that profits of overall market grow.
BECAUSE BNB IS NOT A CRYPTOCURRENCY PROJECT, BUT A COIN TO PAY YOUR FEES IT IS NOT RELEVANT TO FOLLOW THE NORMAL ANALYSIS METHOD.
This is what Teeka (Palm Beach Confidential) says about BNB:
Binance has a fixed token supply of 200 million.
These tokens are used for exchange fees, withdrawal fees, listing fees, and fees for future services.
Here’s what makes Binance unique: It uses 20% of its quarterly profit to buy back its tokens. It then “burns,” or destroys, those tokens. That means they go out of circulation, and the value of the remaining tokens goes up.
This October, Binance burned 986,000 BNB tokens. We expect Binance to burn even more tokens next quarter as its trade order volume explodes, and with it, fees collected.
Binance plans to burn tokens until the total supply reaches 100 million.
Despite its rapid growth and burn program, BNB has been languishing compared to other cryptos. It’s not due to underperformance. Rather, I believe Binance has gotten lost in the mix.
You see, Binance is based in Asia. So, it doesn’t get the same coverage as coins with Western teams. Further, China’s crackdown on cryptocurrencies is still fresh in people’s minds.
This is our opportunity. Binance has a worldwide user base. And I believe it’s only a matter of time before Western audiences pick up on this opportunity.
PART E: WHAT IS IN THE CHARTS? (90/100
Marketcap after introduction: not relevant
Current market cap: not relevant
Volatility level: following total market cap
Stage: following the total market cap
Look at the Binance Coin chart v.s. Total Market, there is a correlation
WHAT YOUR INVESTMENT CAN MAKE YOU
POSSIBLE PROFIT: HIGH DUE TO TOTAL GROWING MARKET CAP
POSSIBLE MARKET CAP: NOT RELEVANT
RISK: LOW, IF THE MARKET KEEPS GROWING
Explanation: the Binance Coin profits from the growing market in general
SHORT TERM: NO, THE MARKET IS UNCERTAIN AT THE MOMENT
MID TERM: YES, BUY UP TO CURRENT PRICE
LONG TERM: YES, BUY UP TO CURRENT PRICE
THIS FUNDAMENTAL IS PUBLISHED THE 8TH of DECEMBER 2017.