Binance CEO Says In-Depth Analysis Of BNB Was “Almost Scary”
Kyle Samani, the co-founder and managing partner at Multicoin Capital, released an in-depth analysis and valuation of Binance Coin (BNB). This is a virtual currency that was created by Binance and that can be used in this trading platform to reduce trading fees.
According to this report, digital currency is clearly undervalued. However, the company in charge of the report, Multicoin Capital, owns Binance Coin. Thus it is clear that they were going to write a positive review about it.
Changpeng Zhao, the CEO of Binance, commented on Twitter,
I massively under-appreciated how detailed this report went on $BNB and @binance. Almost scary. Definitely worth a read. Also available in 4 languages, Eng, 中文, 한국어, 日本語! Thanks to @SpencerApples @TusharJain_ @KyleSamani @multicoincap 🙏🙏🙏 https://t.co/VPzhUaV403
— CZ Binance (@cz_binance) February 23, 2019
The report covered many aspects of the Binance exchange and its integration with the Binance Coin and the future release of the Binance Decentralized Exchange (DEX). Thus, Changpeng Zhao can be surprised due to the fact that there could be some interesting things that they did not think about before.
At the moment, the Binance exchange helps Binance Coin acquire his value. They are used as staking and discount tokens. Moreover, they can also be used as payment tokens that offer several benefits to those holding them. Moreover, Binance uses 20% of its quarterly profits to buy-back and burn Binance Coin. This has helped the digital asset reach the top 10.
About the future of the Binance Coin, Multicoin Capital wrote:
“We believe that Binance will be the first for-profit corporation to start out centralized, achieve meaningful scale, and ultimately decentralize itself to become the first internet-sovereign organization, and the largest decentralized autonomous corporation (DAC).”
According to the report, the new Binance DEX will be very important for the value of the Binance Coin. As time passes, most of the trading volume handled by Binance would move towards the Binance DEX rather than the centralized platform.
As the cryptocurrency market is trying to move towards decentralized exchanges, Binance and its decentralized exchange could attract some users that want to use these platforms. While other exchanges do not have plans to launch their own DEXs, Binance is one step ahead compared to other firms and companies currently operating in the market. This is going to clearly have a positive effect on the value of the Binance Coin.