Multicoin Capital’s Kyle Samani Shares New Binance Coin (BNB) Analysis and Valuation Report

Kyle Samani, the Managing Partner of Multicoin Capital, released on Twitter a new Binance Coin (BNB) analysis and valuation. They start by explaining why Binance is the leading virtual currency exchange in the market.

Launched back in 2017, the exchange is currently the largest in terms of trading volume and it can continue to grow in the future.

Binance Coin Analysis and Valuation

Binance Coin was launched as an asset that has a utility on the Binance platform. With it, users can reduce the fees paid at the time of trading. The binance exchange has been trying to attract users with a very aggressive strategy offering lower fees and increasing their profits with scale.

According to Kyle Samani, over the last few weeks, there has been some discussion regarding the price of the BNB token. The main question that analysts and enthusiasts were doing is whether BNB is overvalued or undervalued. Samani explains that the most important thing that the report tries to address is the long term opportunity for BNB.

For him, all the value that is flowing through the Binance ecosystem will end up affecting in a positive way the Binance Coin.

One of the main catalysts for this price increase could be related to the Binance Chain. The Managing Partner at Multicoin Capital said that during several discussions they had with dozens of market makers, they’ve learned that the biggest challenges are related to fees to cancel orders and lack of deterministic order execution. The Binance Chain addresses both of these issues.

Samani explains hat the Binance Chain is

“paramount to the long term potential of BNB.” BNB holders will be able to generate profits from other people’s trades, thus BNB holders will have perpetual cash flow. Thus, the Binance Coin has an “absolutely massive opportunity ahead of it.”

The summary of the report reads as follows:

“Given that Binance has the industry’s lowest fees, the widest global reach, and the highest volumes, we believe that it’s the frontrunner in the race to be the world’s dominant crypto exchange. We also believe that Binance’s token, BNB, is dramatically undervalued, primarily because it is a novel asset with properties that many investors do not yet fully appreciate.”

The report mentions that the Binance Coin has a tremendous utility such as a staking token that gets discounted fees at the Binance platform, a Discount Token that allows users to receive a discount for the fees paid and as a payment token that allows individuals to pay for fees on the trading platform.

Currently, Binance Coin is the 10th largest virtual currency in the market. It has a market capitalization of $1.55 billion and each coin can be purchased for around $11. According to CoinMarketCap, Binance is the second largest trading platform in the market with a total volume in the last 24 hours of $1.05 billion.

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