Category: Protocol + Services Key word: Security Token Token Name: BNB Token Type: Token Circulating Supply $607.23M Market Cap Rank: 14 Trading Volume (avg of the last 30 days) $17.29M Trade Volume Rank: 26 Current Price vs DPC Index (90d) 1.47% Historical Return since Initial O ering Price +3025%
Binance’s digital currency transaction was launched on July 14, 2017. Diﬀerent from the exchanges with legal currency deposit channels such as Yunbi(云币⽹) and btc38(比特时代), the initial positioning of coin to coin transactions does not seem to be conducive to the cultivation of new users. However, with the closure of the domestic exchanges after September 4th, only the coin to coin transactions of Binance eﬀectively circumvented the policy risk, and acquired and accumulated a large number of users.The data shows that the December 8, 2017, the number of registered users exceeded 1 million. On January 10, 2018, the number of users exceeded 5 million, and 4 million new users were added in one month.
Binance ranks among the world's ﬁrst echelon in terms of transaction volume data, stabilizing the top three in the industry and often occupying TOP1.The platform has a good transaction depth, good experience, and a large user base. However, in early March 2018, Binance user accounts was hacked and so was the API key, and then viciously high up VIA price.
At the end of March, the Japanese Finance Agency has warned Binance to stop operating in Japan. For these two emergencies, the oﬃcial security authorities conducted timely risk control and public relations, which did not trigger further fermentation. The market caused a decline twice during the period. It can seen that Binance’s inﬂuence is great.
In addition to the core business, Binance Labs, Binance info, Binance chain and other aspects of the layout, set the stage for further expansion.The positioning of internationalization is also one of the reasons for the rise of Binance.As the basic token of the Binance ecosystem, BNB is exploring new usage scenarios in addition to transaction fee deductions and voting on the token list. In terms of liquidity, BNB has a large volume of transactions and good liquidity. However, due to the special attributes of platform coins, the trading volume mainly comes from the Binance platform.BNB has a total of 300,000 token-holding addresses, and the top 100 holds a total of 73.42% of the tokens, Top500 holds 74.21%, the overall is more scattered and reasonable.
Users will be deducted a certain fee during the transaction and withdrawal process, which is very costly for small transaction users. If you choose BNB, all the processing costs will be reduced, and the cost saving eﬀect will be obvious. In addition, if the user holds BNB, he can participate in the voting on token-list, social group building, and exercise more rights from the perspective of the manager. The basic functions of BNB are transaction fee discounts and voting. The discount rules are 50% in the ﬁrst year, 25% in the second year, 12.5% in the third year, and 6.75% in the fourth year. There is no discount in the ﬁfth year. The core expansion function of the future is decentralized trading "fuel", mainly for Binance Chain. As the market environment changed, the frequency of token list in Binance slowed down and the frequency of voting decreased. When the Binance chain project was released, it was planned to use BNB for 1C0, but it was not mentioned in the oﬃcial announcement of the latest development of Binance chain in December. And, overall, Binance attaches great importance to the principle, and has a strict auditing system in token list , which is one of the reasons why it has maintained a good reputation.
Binance, established in July 2017, achieves a rapid rise by seizing the opportunity and providing excellent products, combined with strong and eﬃcient operations. After the “94”(September 4th, 2017), it gained explosive growth. In terms of the number of users, the volume of transactions or the depth of transactions, it won the world's ﬁrst position. There were many reports on the fraud of trading volume of each exchange in the industry, Binance appears in a positive image, and it’s solid data becoming a stable support for BNB's market capitalization. In addition to it's own business, the proﬁt repurchase and destruction mechanism of its platform currency BNB has been proceeding in an orderly manner, and the corresponding data are publicly disclosed.This deﬂation model mechanism systematically causes the total amount of BNB to decline and is generally recognized. Regardless of the changes in the market environment, Binance has always shown a ﬁrst-class stable and mature posture, and did not send any bad news, maintaining a good reputation. Overall, Binance's current business volume and BNB's economic model provide solid support for BNB's current market capitalization. From the perspective of actual market performance, BNB has also fallen from the broader market since September, but still has a good anti-fall property in the platform token.
In the ﬁrst quarter of 2018, Binance's proﬁts were almost ﬂat on Nasdaq, reaching $200 million. The supply and demand relationship provides the basic value of BNB. Binance will use 20% of the net proﬁt per quarter for the repurchase of BNB. The repurchased BNB will be directly destroyed and recorded in the chain for everyone to verify. The destruction total amount of BNB will up to 100 million according to the plan. The repurchase and destruction mechanism reduces the deﬂation model of supply, controls the market circulation, and has solid support for the stability of BNB price and future appreciation. At present, Binance has carried out 5 destructions, recorded as follows:
In March 2018, Binance announced the launch of the Binance Chain R&D program. In the future, BNB will upgrade its Coin from ERC20 tokens and enrich its application scenarios. At the same time, Binance Labs is responsible for investing and the long-term ecological business of Binance. In the long run, with the exchange as the core, all businesses have a multi-pronged approach, and the stability and development of the Binance Ecology is the biggest support for BNB's value.
Time Span Trend Market Cap Growth Rank Outlook Short Term In the short-term, Binance takes the exchange as the core, and each expansion business is rolled out simultaneously. The BNB repurchase mechanism is stable, there is no word of mouth, and it can maintain the leading market trend. 10~15 Positive Long Term In the long run, Binance will continue to accept competitors' challenges, and its reputation, data, traffic, and user volume are good. If it can maintain its leading position, BNB price will be reflected in Binance value. 9~13 Positive
• The transaction volume data is solid and real, and the ecological expansion is also very stable. With the exchange business as the core, it has long been in the ﬁrst echelon and even the leader.
• BNB's proﬁt repurchase and destruction mechanism is open and transparent, and its operation is methodical. The deﬂation model mechanism systematically causes the total amount of BNB to decline, which provides solid support for the current market value of BNB.
• Binance has a strict token-list review mechanism, crisis announcements and technical risk control. It has maintained a good reputation and branding process for a long time with a stable and mature posture.
• Policy risks are mainly from sudden black swan events, and potential hacking attacks that exchanges generally need to pay attention to.
• Binance will always face challenges from the future of all competitors, as well as competition for emerging business positions such as stable currency and STO.
• The application of BNB is currently concentrated in the core business, and the scenes in other directions have not caused widespread concern and popularity.
Binance is a trading platform focused on digital assets. Binance Coin is a platform digital asset called "BNB" issued by Binance based on Ethereum. The total amount of issuance is constant at 200 million and will never be issued. At present, the ﬁfth BNB quarterly destruction has been completed. All users can verify the number and address of each quarter in the oﬃcial website:
For Binance. We analyze it from three perspectives and clarify its core.
Data: users and transaction volume
For the digital currency trading platform, there is no need to entangle the stories and concepts, and the user is the most authentic voting result. In order to attract and retain users, many trading platforms have also launched platform tokens and mechanisms. In the past few quarters, Huobi.pro used 20% proﬁt to repurchase HT token and put it into the Investor Protection Fund. Recently, with the end of the community vote, the vote to support the “Continue Airdrop” program only accounted for 19.01%. The voter rate supporting the "destruction" program accounted for 80.99%. It can be seen that the destruction mechanism is closely related to users and more acceptable to users. BNB has chosen this model from the very beginning, which is suitable for users and is forward-looking.
In the latest report of December, the global transparency organization Blockchain Transparency Institute has increased data on mobile device and API transactions and conducted in-depth research on speciﬁc transaction pairs of exchanges. According to BTI, more than 80% of the top 25 BTC transactions in CMC (coinmarketcap) trading volume are bogus. A number of well-known trading platforms have not been included in the list because of data fraud. 57 exchanges have been listed in the BTI Exchange Watch List due to data fraud. The authenticity and credibility of this data from BTI are not discussed here, but from the results, Binance is not only the top spot, but since the past two quarters, all data organizations have investigated and counted the exchanges. Binance has never had a word of mouth problem, and the industry has unanimously recognized its true trading volume.
In addition to its own user base, transaction volume, and good mechanism, Binance is gradually expanding its ecological business and paving the application scenario, but for Binance, the exchange is the cornerstone of all derivative business. The market value ranking about online currency, DPRating has done an in-depth analysis in Q2.First, the internal trading volume dimension mainly counts the ten currencies with the largest transaction volume within 24 hours, and calculates the proportion of total trading volume in each currency within 24 hours. The data shows that ten currencies have suﬃcient liquidity in Binance; the right side of the ﬁgure is the cumulative transaction volume of the above ten currencies, and the total volume of the top ten currencies with good liquidity accounts for the total trading volume of Binance. 66.69%.
In addition, from the external transaction volume dimension analysis, we found that the trading volume of the online currency in Binance within 24 hours accounted for the proportion of the currency in the total trading volume of the whole network. The ratio of Binance online currency trading volume to the whole network trading volume is evenly distributed. Most of the currency transactions accounted for more than 10% of the entire network, and even more than half of the currencies in Binance accounted for more than 50% of the entire network. It can be seen that Binance online currency generally has good liquidity, head tokens are more obvious.。
C、Binance extended ecology
Binance College provides relevant science and technology in the form of articles + videos, including digital currency, blockchain, transactions, etc. The content is from shallow to deep and suitable for diﬀerent users.
Binance's investment institutions, incubator + eco-fund model, will set up a $1 billion social impact fund, and select 20 partners to invest in MobileCoin, Oasis Labs, Certik and compliance crowdfunding platforms, Republic and other projects.
3、Binance Chain (Binance Chain) announced in March 2018 that BNB will upgrade from ERC20 token to Coin in the future. CZ (Changpeng Zhao) has demonstrated "a rough early preview version" on Weibo, which can be understood as Binance's decentralized exchange. In December, Binance's oﬃcial Weibo once again released a demo video of the invitation test, which was completed and progressed well.
4、Binance Info, a project library based on transaction tokens. Integrate each quality rating report, the agency uploads rating reports and then Binance is responsible for reviewing, these reports can enrich project data.
5、Legal currency exchange
Binance will establish a digital currency exchange in Uganda, launch a new platform BinanceUganda, and support the local currency Ugandan shilling. In addition, there are also the distribution of currency exchanges in Liechtenstein, Singapore and other places.
Binance completed the acquisition of Trust Wallet at the end of July, invested in ZDPVT.com, and established the Binance Charity platform. In addition, Binance has established a wide range of strategic partnerships, as well as expansion of BNB oﬄine payment usage scenarios, such as the US real estate platform Propy, TravelbyBit and so on. Listed below, although the number is large, for most users, the core of BNB is still the transaction, which has not caused widespread concern and heat in other aspects.
The evaluation for Binance can be divided into two parts.
A. Binance Exchange
Behind the strong user base and trading volume is the strength of its trading system. Compared with other international mainstream platforms, Binance is excellent in multi-language support, trading interface UI, trading experience, customer service response and other aspects. Internationalization is the focus of Binance's advancement and rise. Currently, Binance supports 12 languages including Chinese, English, Korean, Russian, Spanish, and Vietnamese, attracting a large number of users from all over the world. Due to the special attributes of the trading platform, the cultivation and accumulation of user loyalty not only helps to retain, spread word of mouth, and is sticky, but also shows advantages in a bear market environment. At present, the trading volume of exchanges including Binance has dropped sharply. At this time, the effect of trading depth is more reflected.
When it comes to exchanges, it has to mention a hidden demand for investors and project parties, that is, the “rise” effect of online tokens. Although it is far less crazy than the bull market, the online trading in Binance can still bring a lot of gains. Still allowing investors to have such psychological expectations, except for Binance, only Bithumb and Coinbase. However, due to the possible increase in the number of coins on the Coinbase, the scarcity and gold content are reduced.
At present, the project invested by Binance Lab is not directly related to the business, but in the long run, its incubation direction is oriented to security, media, technology and so on. When selecting a project, it is expected to provide support in Binance info, trading interface diversion, etc. Unlike the pattern of post-mortem stocking, Binance's flow and high correlation are very attractive to the project side. This kind of investment model is more inclined to healthy long-term incubation, and high-quality projects are expected to bring a certain increment to the currency security itself, and empower the Binance ecosystem.
Binance has relatively stable income and proﬁt, rich in currency and strong liquidity. BNB as a platform currency is closely related to the development of Binance. In the digital currency industry, BNB's direct competitors include RNT, HT, ZRX, and the newly established BXA. From the aspects of platform traﬃc, internationalization, transaction volume, proﬁt and currency stability, BNB base is the advantage. In terms of stable currency, STO and compliance, they have their own layout. Outside the digital currency industry, the biggest risk comes mainly from the uncertain policy of black swan in various countries. Since the digital currency trading ﬁeld still has a large volume that has not been tapped in the long run, Binance needs to pay attention to the challenges while stabilizing the business.
The deﬂationary economic model is more common and seems to lack new ideas, but a large number of past cases show that it is very eﬀective and is one of the classic general economic models in the industry. BNB repurchases and publicly destroys huge amounts of liquidity every quarter, greatly reducing the selling pressure. In the current bear market, most of the funds are in a wait-and-see attitude, and in the platform investment choice, people will give priority to the top quality tokens. At present, the HT mechanism is worthy of attention after the change. The distributed exchange RNT and the movement of the BXA ecosystem behind it， cannot be underestimated.
The platform token was not pioneered by Binance, but BNB is relatively successful at the moment. With the emergence of the follow-up platform token in the digital currency industry, people gradually realized that the exchange is one of the few landing applications in the industry. There have been obvious linkages between June and July this year. At present, the proﬁt of various trading platforms in the bear market has shrunk, and it is also like a thin ice. Binance obviously hopes that the head eﬀect will be further highlighted and respond to the impact of the challenger. It is impossible to rely solely on concepts and speculation to win the trading track, but to provide solid foundation for steady development. Investors can focus on how Binance promote BNB in the future based on the precipitation of existing users.
|Position||Transaction-centric digital asset platform.||15||14|
|Competitive advantages||The past accumulation is mainly in the trading system technology, as well as the company's operations, and is deeply cultivated in the industry.||5||4|
|Necessity||Meet transaction security, transaction depth, etc.||15||12|
Core Team Members:
Members Background CZ Zhao Binance CEO, who served as technical director of Bloomberg; joined OKCoin as co-founder, served as CTO, managed OKCoin's technical team, and was responsible for OKCoin's international marketing team, and quickly establishing OKCoin's international influence. Yi He Used to be the host of the TV. In 2014, joined OKCoin in charge of brand building. She was the vice president of technology and is now the co-founder of Binance. Lilai Wang Former CTO of Bijie Network, has extensive experience in trading system and clearing system top-level architecture design. James Hofbauer Co-founder and Chief Architect of Bijie Network,He built and implement the core matching engine and middleware. Worked at Palantir in Silicon Valley. Palantir's large-scale, high-performance systems are used for network security, anti-money laundering, fraud detection, counter-terrorism, and other data analysis of private and government entities. Paul Jankunas Former core development member of Bijie Network, responsible for the core machine engine of C++ implementation. Worked at SBI BITS of the SBI Group in Tokyo. Allan Yan Former product director of Bijie Network, Worked at Orient International Holding. Investor & Consultant Official introduction Roger Ver Angel investor, CEO of bitcoin.com. Linke Yang Co-founder of BTCChina. Dong Zhao Investor, former co-founder of Moji China. Matthew Roszak Bloq co-founder. Vincent Zhou Founding partner of FBG Capital, with extensive experience in digital asset trading and investment. Da Hongfei NEO Founder，Onchain CEO.
CZ Zhao(Zhao Changpeng) is a technical CEO. His past experience in Bijie Network has provided great help for Binance's stable trading system. Many core members of the team came from Bijie Network and have had the full run-in and the precipitation experience. In February 2018, Forbes released the first rich list of digital currency, CZ ranked third on the cover of this issue of Forbes magazine.
Yi he is called “Top Gun” in China's digital currency market. She has a strong inﬂuence in the digital currency market, and she is trusted by industry insiders and investors. Whenever Binance-related events or activities take place, Yi He will answer them in the group and claim to be “Binance Chief Customer Service”. As a team CMO, Yi He has a strong aﬃnity for users and helps build trust. At the same time, Yi He has a strict attitude on the issue of principle. Regarding the Token-list problem, no matter how it is related to Binance or Yi He, even Binance Lab invests without any special channel. From a live broadcast in May, Yi He talked about Binance and Sequoia Capital, saying, “Whether the company can develop well is not depend on a good relationship. It depends on whether it can really contribute to the industry, whether it is a A great company, whether it is truly responsible to shareholders.”
In the white paper, investors and consultants are listed, such as Shuoji Zhou, Dong Zhao, Hongfei Da, Jun Du and other celebrities inside and outside the digital currency industry. Sequoia Capital had intended to invest in the initial establishment of Binance, but failed to do so. In addition, at the end of October 2018, Temasek's Xiangfeng Investment announced a strategic investment in Binance and will jointly establish Binance Singapore to expand its development in the region. Binance will be supported to build a legal currency trading platform in Singapore and will also provide other legal currency transactions and services in Southeast Asia.
Unlike popular projects that indicate which institutional investments they have acquired, many of the capitals are proud to have invested in the Binance Angel Wheel. However, there was also an episode that sparked heated discussions. Sequoia Capital discussed the investment in Binance in August 2017. After failing to invest successfully, it sued Binance CEO CZ for violating the investment exclusive agreement. Binance immediately responded to all the allegations and said that would not comment further. A week later, CZ said in a personal Tweet that all applications for online projects may be investigated, and whether there is a direct or indirect relationship with Sequoia, causing users to worry that many projects may be removed. Looking back now, the storm ﬁnally dissipated quickly, and the so-called Sequoia system continues to trade in Binance. However, the investment institutions and exchanges represented by the two sides at that time occupied a large amount of resources in the digital currency industry. The controversy caused by the diﬀerences has been vividly seen, and the inﬂuence of both sides can be seen.
The Binance team has extensive experience in technology, operations and branding, and investment and ﬁnancing. In addition to the core technology and operations teams, the follow-up is the Binance Labs, the research team, and the Binance info team. Because it is a win-win attitude towards the partners, it is conducive to the long-term ecological stability.
|Executive Team||The team has rich experience in trading systems and entrepreneurship.||30||28|
|Investors and advisors||Many celebrities in the industry, providing better resources and influence.||5||3|
|Institution investors||Black Hole Capital, and Funny City founded by Weixing Chen, also the founder of KuaiDi.||5||4|
1、Social media and community
Binance Twitter followers is around 890,000 people, with high frequency and quality of tweets and good interaction. The oﬃcial Telegram includes an announcement group, a core English group, and a multilingual group. The oﬃcial Chinese group is 81000+, and the English group is 8600+. The daily activity is lower than the bull market, but compared with other projects, the data is still very prominent.
With BNB and Binance as keywords, Binance reached its peak of 100 in December 2017.
In addition to the recent Mith and Mana exchange competitions, Binance has increased its industry investment and cooperation in expanding its business since Q4, and Binance incubator completes the incubation of BUIDLers for ten weeks. Binance Info has added a new rating report module to integrate reports from mainstream third-party rating agencies around the world. At the same time, Binance itself has combined data advantages. Binance Research has launched an in-depth analysis report, and six have been released.
Binance maintains regular oﬄine meetings around the world. The next PR focus is Binance Blockchain Week, which will be held in Singapore from January 19th to 22nd, 2019, including a two-day event Binance SAFU Hackathon and Block Chain Summit.
4、BNB trading volume
According to the statistics of Feixiaohao and CMC, the average value of BNB's 30-day trading volume is ranked 26 in digital assets, and its trading volume is concentrated in Binance. The trading volume was real and there was no abnormally large ﬂuctuation.
In addition to the main social media and community, Binance has also opened up a number of other channels, including media groups that have spoken to the media in the ﬁrst time. Overall, Binance has a lot of attention and active interactions. Diﬀerent from the project, the exchange community is more cohesive to users due to problems, token-list, market, and market hotspots. This is reﬂected in both the bull market and the bear market. On the other hand, the good activity of the English community also shows the number of Binance international users.
Another feature of the Binance community is the high level of participation, as seen in each of the candy, token-list, new transaction pairs, and voting. Obviously, users are the cornerstone of Binance's development. The Binance community is a window that can truly and timely reﬂect user attitudes and loyalty.
|Social Media and Search Trends||High attention, general search index, good interaction.||5||5|
|Community||Great quantity of followers, good interaction.||10||6|
|PR Events||Rich in PR activities: project progress announcements and foreign community construction, Twitter and social media update frequency.||5||3|
On June 22, 2017, Binance released a white paper. In a month, the crowdfunding amount reached 15 million US dollars, and then the Binance website was oﬃcially launched. So far, Binance has mostly delivered results directly in terms of progress. Some of the disclosure data are listed below:
In Top Exchanges List of DPRating in October and November, Binance topped the list with factors such as transaction pairs, transaction volume, average daily IP traﬃc, and community.
There is no roadmap and code statistics for Binance's performance review. Therefore, from the realistic results, Binance Chain is one of the Binance ecosystems, so it is assessed as an ecological expansion stage.
Binance's layout and construction at the commercial level, especially investment, has not been a very successful project until now. The future development of Binance will focus on stable currency, STO and compliance.
|Fulfillment tracking||On schedule||2||1|
|Progress||In the ecosystem expansion phase||5||5|
|First dimension||Second dimension||Third dimension||Details||Judgement||Points|
|Project||Position 15%||Position 15%||Transaction-centric digital asset platform.||Transaction-centric digital asset platform.||14|
|Competitive advantages 5%||First mover 2%||The past accumulation is mainly in the trading system technology, as well as the company's operations, and is deeply cultivated in the industry.||The past accumulation is mainly in the trading system technology, as well as the company's operations, and is deeply cultivated in the industry.||2|
|Necessity 15%||Is it Pain point 5%||Meet transaction security, transaction depth, etc.||Meet transaction security, transaction depth, etc.||5|
|Token incentive 10%||7|
|Team||Executive Team 30%||Team profile and project match||The team has rich experience in trading systems and entrepreneurship.||The team has rich experience in trading systems and entrepreneurship.||10|
|Software development experience 10%||8|
|Operation expertience 5%||5|
|Other industry resources 5%||5|
|Investors and advisors 5%||Level of influence 3%||Many celebrities in the industry, providing better resources and influence.||Many celebrities in the industry, providing better resources and influence.||2|
|Institution investors 5%||Institution investors 5%||Black Hole Capital, and Funny City founded by Weixing Chen, also the founder of KuaiDi.||Black Hole Capital, and Funny City founded by Weixing Chen, also the founder of KuaiDi.||4|
|Community and popularity||Social Media and Search Trends 5%||Popularity 1%||High attention, general search index, good interaction.||High attention, general search index, good interaction.||1|
|Search popularity 2%||2|
|Community 10%||Popularity 3%||Great quantity of followers, good interaction.||Great quantity of followers, good interaction.||3|
|PR Events 5%||PR Events 5%||Rich in PR activities: project progress announcements and foreign community construction, Twitter and social media update frequency.||Rich in PR activities: project progress announcements and foreign community construction, Twitter and social media update frequency.||3|
|Adjustables||Fulfillment tracking 2%||Fulfillment tracking 2%||On schedule||On schedule||1|
|Github Audit 3%||Github Audit 3%||N/A||N/A||N/A|
|Progress 5%||Progress 5%||In the ecosystem expansion phase||In the ecosystem expansion phase||5|
|First dimension||Second dimension||Third dimension||Details||Points|
|Transparency||Basic information||Whitepaper||Has whitepaper||1|
|Social media and communication channels||Rich community channels (YouTube, forums, Weibo, developer chat channels)||2|
|Github||N/A or private sources||1|
|Core team||Team’s records||Verifiable and detailed (Linkin or IT orange channels)||1|
|Full-time or part-time||All employees are full-time||1|
|Operation time||More than 1 year||2|
|Has an physical entity?||Yes||1|
|Change of team||Staff expansion||1|
|Authenticity||Team members’ experience||Team members’ experience||No exaggeration||1|
|Industry resources||Industry resources||No exaggeration||1|
|Marketing and PR||Marketing and PR||No exaggeration||0|
|Fundraising and compliance||Fundraising rounds||Ratio of price in each round||Ratio is reasonable||1|
|Ratio of the total funding in each round||Ratio is reasonable||1|
|Lock-up||Team lock-up||Lock-up period is reasonable||1|
|Investor lock-up||No lock-up||-1|
|Budget disclosure||Budget disclosure||Announced and detailed||1|
|Additional issuance||Additional issuance||Within a reasonable range||1|
|Fund supervision||Fund supervision||Internal (foundation) regulation||1|
|Adjustable||Estimated market cap||Estimated Market cap||Moderate||0|