Thread by @100bviking

Is #BNB going to ZERO? Very important facts you should know 🧵

I see a lot of coordinated BNB FUD lately. What are the facts?

This 🧵 looks at:

- BNB vs FTT. Are they similar?
- BNB being an “exchange token”.
- The BNB Smart Chain.
- The BNB in #Binance reserves.

Read on 👇

The #BNB FUD looks coordinated for a couple reasons:

They are being pushed by the same accounts pushing the #Binance FUD which I already debunked here:

https://twitter.com/100bviking/status/1604138086551756804

They are all comparing BNB to FTT. That’s either ignorant or intentional fearmongering, or both.

The basic narrative being driven by BNB fudders is that “Binance is insolvent” (all indications show that this isn’t true and Binance is a very strong exchange) and that BNB will crash just like FTT since it is just the Binance exchange token.

Except BNB is NOT like FTT...

Is BNB like FTT?

FTT is the token of the FTX exchange. That’s it.

BNB, on the other hand, is *both* the native token of the BNB Smart Chain AND the token of the Binance exchange.

BNB is NOT in any way like FTT.

Now, I want you to pay very careful attention going forward...

BNB Smart Chain:

BNB Smart Chain, also BSC, is the world’s most used blockchain. It also has the second highest TVL.

To put things in perspective:

BSC has more daily active users than Ethereum, Polygon, Solana, Arbitrum, & Fantom (the five next most used chains) COMBINED!

It gets more interesting:

BSC is the most used blockchain by top NFT games.

9 of the top 25 NFT games are on #BNB chain, making it the most preferred blockchain for crypto games.

Gaming will have the most impact in ensuring mainstream crypto adoption, so this is a big deal.

As a builder on BNB chain (BSC), I have first hand experience of how critical BSC is to mainstream crypto adoption.

I’m a core team member at #Floki. Floki currently has 420,000 holders. 356,000+ of these are on BSC. That’s 5x more holders on BSC despite launching first on ETH.

At the peak of the bull market, FLOKI had tens of thousands of transactions/holders DAILY and saw peak volume of $60 million+ on BNB Chain in ONE day.

All of these transactions require the native token of the BNB chain: $BNB.

We also recently launched our crypto locker protocol, FlokiFi Locker, on 12 blockchains including #BNB chain and guess what? BNB Chain is the most used chain… by far!

The above is my personal experience as a builder on the BNB chain, but data shows there's much more…

Some BNB chain data:

- PancakeSwap (BNB chain’s top DEX) has a TVL of $3.1 billion on the chain.
- Venus (lending protocol) has a TVL of $1.1billion on the chain.
- BiSwap (DEX) has a TVL of $250 million on the BNB chain.
- ApeSwap (DEX) has a TVL of $52 million on the chain.

There are thousands of additional projects building on #BNB chain so the above is by no means an exhaustive list, but the main point stands:

BNB chain is the world’s most used blockchain and the second largest chain by TVL, and you can’t use it without the $BNB token.

BNB and the Binance exchange:

We’ve seen from facts and data already presented that the $BNB token is fundamentally strong due to the strength of the #BNB chain.

How about BNB and the Binance exchange?

So far we know that #Binance has:

- 120 million users (the most of any crypto exchange!).
- 75% of CEX market share.
- $56 billion+ in reserves.
- Survived stress tests including over $10 billion in withdrawals last week.

These are signs of a very strong exchange!

According to respected crypto trader and analyst @Tree_of_Alpha, #Binance has processed Futures volume of ~$15 trillion this year alone – which could have netted them an estimated $3 billion in fees just from Futures trading.

https://twitter.com/Tree_of_Alpha/status/1604041343856046081

Binance has other solid revenue sources such as Spot and Margin trading as well as other offerings. They generated an estimated $20 billion in revenue in 2021 according to Bloomberg.

Again, this looks like a VERY strong exchange… and it uses the $BNB token as its main token.

So what role does BNB play on the Binance exchange?

BNB allows Binance users to access better fees on spot, margin, and futures pairs, exclusive token sales on Binance Launchpad, access to loans through Binance Loan, and more.

As you can see:

BNB essentially derives its value from a *hybrid* of being the token of the world's most used blockchain as well as the world’s biggest crypto exchange. Its fundamentals are strong!

That said, there are a few more critical FUD points that we need to address:

- The BNB in the Binance reserves.
- BNB liquidity.
- Leverage.

So let's look at these three things and what they mean for $BNB...

Let’s start with BNB in the Binance reserves:

I’ve seen certain accounts make a big deal of the percentage of BNB in Binance reserves.

For example, @GRDecter makes a big deal about “~9%” of the assets in Binance reserves being BNB.

I don’t know what the source for that 9% @GRDecter cited is, and I tend to rely heavily on on-chain data and research (rather than opinions), so I’ll reference real time data from Nansen that currently puts the BNB in Binance’s reserves at ~10%:

portfolio.nansen.ai/dashboard/bina…

Is 10% of the Binance reserves being BNB too much?

Some facts:

- BNB is the THIRD BIGGEST cryptocurrency in the world after BTC and ETH.
- BNB is Binance’s main token and the token of their chain. Naturally more users would store their BNB on Binance over other exchanges.

Furthermore, Coinbase, Kraken, and many top exchanges do not currently list the BNB token, making Binance the only choice for most people to store/trade BNB.

Top exchange OKX only recently listed BNB.

10% of BNB in Binance reserves doesn't seem too much in light of these facts!

More importantly:

Binance reserves should be a 1:1 representation of user funds on Binance.

The real question is: are these reserves truly representative of user deposits? I’m not sufficiently qualified to give an opinion on that, but what do the experts/data say?

Firstly, data from leading on-chain analytics provider CryptoQuant has established that Binance’s liabilities are well collateralized by their assets:

https://twitter.com/cryptoquant_com/status/1603537064049250304

Secondly, Binance released a Proof of Reserves that allowed users to check the status of their assets on the Binance exchange and the number adds up based on basic tests done by the Global Blockchain Leader at EY (a Big 4 accounting firm):

https://twitter.com/pbrody/status/1603100216395079681

In a nutshell:

- The leading on-chain data analytics platform has attested to the accuracy of the Binance reserves.
- The Global Blockchain Leader at a Big 4 accounting firm says the numbers look good.
Binance has survived stress tests of $10 billion+ in withdrawals.

Until I see strong evidence to the contrary, I have no reason to doubt the accuracy of the Binance reserves or the accuracy of the representation of the BNB in their reserves.

I’d also like to briefly highlight a two key facts...

1. Liquidity

$BNB is a very liquid cryptocurrency. It is currently the third most liquid cryptocurrency after BTC and ETH (minus stablecoins).

In other words, there is strong and real demand for BNB. By contrast, $FTT was highly illiquid and that hastened its demise.

It was a clearly known fact that FTX had a lot of loans. A lot of these loans were taken with FTT used as a collateral. This factor, coupled with the lack of strong organic demand for FTT and revelations about FTX’s misconducts, hastened its downfall.

Image credit: @HsakaTrades

There is no sign of BNB being leveraged like FTT, and @CZ_Binance has publicly stated that they have no loans.

For an exchange as big as Binance (currently the most FUDDED in crypto), if BNB has lots of leverage like FTT had I would assume it would have been exposed by now.

In Conclusion

$BNB is the main token of the world’s most used blockchain and the world’s strongest exchange. It is also the third biggest crypto after $BTC and $ETH.

BNB has strong fundamentals and isn’t in any way similar to FTT. I certainly don’t think it is going to zero.

NOTE: This is NOT financial, legal, or investment advice. This is a thread based on research, data, and on-chain evidence that ANYONE can find.

The purpose of this thread is simple: dispel the BNB FUD and misinformation with facts and on-chain evidence anyone can find!

I will be posting more in-depth, research-backed threads on various crypto related subjects in the future.

Make sure to follow me so you do not miss these threads: @100bviking

Please also share the first tweet in this thread to get the word out:

https://twitter.com/100bviking/status/1606424115899924481