Thread by @KyleSamani

0/ Thread

Today I'm excited to share Multicoin Capital's analysis and valuation on Binance coin $BNB ! It's available in English, Chinese, Korean, and Japanese

Disclosure: we're long BNB

multicoin.capital/2019/02/19/bin…

cc @cz_binance @binance @BinanceLabs

1/ Over the last few weeks, there's been some discussion about the value of BNB. Is it over valued, or under valued? Is it a scam? It's not equity!

The report touches on all of those questions

2/ The most important thing to understand is the long term opportunity for BNB:

In the long run, the vision is that *all* value that flows through the Binance ecosystem will accrue to BNB directly.

Binance Chain is the first step in that direction.

3/ Multicoin developed a thesis around decentralized exchanges in 2H 2017, culminating in a large ZRX position going into the launch of 0x-based exchanges

Unfortunately, 0x-based DEX have not achieved meaningful market share

Why?

4/ In our discussions with dozens of market makers, we learned that the biggest challenges are around fees to cancel orders, and lack of deterministic order execution

Binance Chain addresses both of those

5/ The move with Binance chain is really unprecedented. Binance chain will offer *lower* fees than the Binance centralized exchange. And the UX will match that of the centralized exchange

Binance is aiming to disrupt itself before someone else does

6/ The Binance chain is paramount to the long term potential of BNB. In Binance chain, BNB holders will be able to generate profits from other people's trades. That is, BNB holders will have perpetual cash flow

7/ When you put these two together - that the long term vision is for all value to accrue to BNB and the amount of effort Binance is putting into Binance chain, the opportunity for BNB becomes clear

BNB has an absolutely massive opportunity ahead of it

8/ PS, don't forget about the fact that Binance is now the most systemically important organization in crypto, bar none, and that they have out-executed *everyone* and are lapping them left and right

9/ Consider this: Binance became the world's largest crypto exchange *without* a fiat onramp. And now they're rolling that out too.

Plus, security token exchanges, Launchpad, Labs, and more. The opportunity set is massive

{fin}