Thread by @LegitoCrypto

0/ Reasons why you should be #Bullish on $BAND @BandProtocol

If you are bullish on #defi and smart contract adoption, you want to get exposure to needed middleware like #oracles. Smart contracts can't access real-world data and APIs, and oracles like $BAND solve this problem

1/ Chainlink dominating 97% of the entire oracle space having the first-mover advantage. $BAND was founded in 2017, on the market since late 2019 with now around 2.6% of chainlinks market cap.
So the question is how big can $BAND grow and capture value relative to $LINK?

2/ If we look at other spaces eg smart contracts, $EOS & $ADA are around 10-15% of $ETH's market cap

Exchange token show a better ratio with $HT at 40% of $BNB value while $OKB and $FTX are around 10%

If $BAND does a similar ratio of ~15% of $LINK - that puts it already at ~$25

3/ But of course that's a bad comparison if we don't look at fundamentals

Now let's talk about some fundamentals which boils down to
- tech
- adoption
- team
- key growth areas

Check: bandprotocol.com

4/ tech: $BAND is Utilizing the @cosmos SDK with their IBC cross-chain protocol

This allows some differentiation to existing oracles:

Scalability: oracle computation is independent of destination blockchain like ETH so it prevents network congestion issues

5/Cost: not having 20 validators sending tx back&forth on ETH saves a lot of gas fees > translates to cheaper cost

Flexibility: as oracle demand is more niche & custom, having the flexibility to define your own oracle request easily is pretty neat, solve long tail of use cases

Speed:
#BandChain also settles oracle results very quickly and inexpensively thanks to fast block production and instant finality of the Cosmos SDK. Data Queries will take a total of only 3-6 seconds. Transaction costs are much cheaper compared to solutions relying on ETH network

6/Cross-chain battle: with IBC bridge and lite client bridges they are building to other chains, and with many layer 1 solutions hitting the market, there will certainly be a market for BAND to serve

Geography: Asia dominates trading + adoption with more relaxed government

7/ Various layer 1 solutions have chosen $BAND as their oracle solution already, there is #Waves #Icon #Matic with many more to come in the next months. So ~2 years from now is when we see the real fruits. This is a similar timeframe to how chainlink has come to dominate the West

Projects start to see the importance of using multiple oracles to secure their network. Not being exposed to the single point of failure issue becomes more and more important for various #DeFi projects. Project founders do learn from situations in the past and act accordingly

Some economical laws & Competitive analysis factors do play a very important role as well e.g.

▶️ Second Mover Advantage
▶️ Pareto Distribution (80-20)
▶️ Network effects with increasing adoption and value secured

These 3 do play a major role in price appreciation & re-rating

Re: Second Mover Advantage:

"One study showed, in fact, that pioneers were more successful than late movers in just 15 of 50 product categories."

The key innovative late entry and $BAND is pioneering that in the Blockchain #oracle industry.

insight.kellogg.northwestern.edu/article/the_se…

8/ Team

A young powerhouse, @SSrinawakoon worked close with C-level executives in many top tier companies while at @BCG. Degrees from @stanford in computer science and management

@nomorebear seems geeky with 2 honor @MIT degrees & outperforming Vitalik.

https://twitter.com/LegitoCrypto/status/1285657140556947457

9/ @BandProtocol is backed by traditional VC powerhouse @sequoia and crypto heavyweight @binance & more.

These VC's conduct extensive DD and I'm sure they are looking at 100x opportunities, they invest for billions, not millions.

10/ $BAND is currently listed on Binance and is highly liquid. According to the team, liquidity is a very important aspect hence the recent listing on #binance futures @cryptocom

@coinbase recently evaluates eventual support & addition for Band Protocol to be listed there

11/ I guess there will be more listings on top tier exchanges like Coinbase (they are already on Custody and it's often just a matter of legal clearance I guess)

More work with enterprises (Sequoia will be good connector)

More adoption with #defi and other smart contracts

Staking on @BandProtocol is live in a permissionless network of 55 Validators, incl. industry-leading Validators such as @stakefish @forbole @CosmostationVD @FigmentNetworks @westaking_io @stakewithus @infstones @ChorusOne @B__Harvest @Node_Ateam @CastlenodeHQ @HashQuark & more!

12/ not saying all of this will happen but if it does, 20-25% of link is probably an under-valuation and maybe more closer to 40-50% like Huobi to Binance - this implies $35 and guess what.... LINK is also growing

13/ If you think this world is not a monopoly, then it's a pretty good investment thesis

None of this will happen overnight

but $10-15 seems pretty easy and do-able if they can execute on only some of the above

Just my 2 cents...
#DYOR

14/ If link continues to dominate and grow crazily over the next few years, then $Band at just 5% of link is still pretty good and goes into the higher 8 right range.

So much vaporware in top 100, I think BAND deserves to be in the top 50 spots

#Crypto is not a zero-sum game!