05 Dec Binance Coin
Binance Coin (BNB): Next Google on the Rise
Published: 5 December 2018
Shhh…Can you hear the screams?
It’s people panic-selling crypto at bargain prices.
They are scared, frustrated, and hopeless.
Pure bloodbath has been sparked on the streets of crypto. The market sentiment is similar to what happened in December 2017, but this time it’s reversed.
A year ago, people were betting if Bitcoin would hit $50k or $100k in 2019. Now they are just talking about how low it might go.
Top secret discord groups turned into ghost towns. Telegram chats became quiet. Conference rooms became empty. Some are ready to ride this to zero.
A while ago, very few people sold their cryptocurrency. Today, only a few click the buy button.
The cryptocurrency market will soon find its midpoint and the people who buy during market despair will be rewarded just like the people who sold in times of euphoria.
As the purge continues, it helps to distinguish fakes and scams from real crypto companies aiming to dominate the industry.
Today we would like to present to you a very special project that has significantly outperformed other cryptocurrencies during this bear market.
Binance Coin (BNB)
BNB token is tied to the Binance Exchange, which is currently the largest cryptocurrency exchange in the world by volume.
Binance is the house.
And the house always wins.
Be it a bull or bear market, the exchange always profits from trading fees. At the moment, there is not a more lucrative business in this space than Binance.
Established in mid-2017 by Changpeng Zhao aka @CZ, Binance quickly dominated the space with its capacity to process a huge number of transactions per second – 1.4 million to be exact.
Together with its ease of use and affiliate program, Binance managed to gain a user-base of 3,000,000 by the end of 2017. Binance is moving fast; the current number is even more impressive as it just passed more than 10 million active users in about 180 countries.
In just 6 months since the launch of Binance, @CZ has become a billionaire. It is no wonder as the Binance user-base surpasses the population of Sweden.
This man is on a journey to completely dominate crypto trading and beyond. His plan is to secure more than one billion users by 2040.
A madman? Maybe.
He has the funds, resources, and connections like no other in this space to achieve these goals.
What you will find in this report is our analysis of how Binance can become the next Google of the crypto space and how you can profit from investing in Binance Coin (BNB) which currently trades at around $6.
The Binance Exchange is Just the Beginning
@CZ’s goal of acquiring 1/7 of the global population as users sounds like madness to many.
How can he expect over 1 billion people to trade on Binance?
We believe he doesn’t see as many people trading on Binance in the future as it is today either.
By 2040, our economy will be much different. The tokenised value will flow as easy as we send text messages today. Sending a shredded ownership of a hotel in Bangkok in form of a token in exchange for a piece of Da Vinci art will be child’s play.
That’s why @CZ launched a venture called Binance Labs Incubation Program in September 2018 with the aim to bootstrap crypto start-ups of all kinds.
Similar to what Alphabet Inc. (in other words: Google) has been doing over the last two decades – acquiring various companies for crazy amounts of money and absorbing their solutions to the mother company – Binance takes this model further by funding start-ups in-house.
Anyone in the world can send an application to Binance Labs and explain their new business idea related to cryptocurrencies. Binance offers funding in exchange for 10% of equity.
We’re pretty sure Venture Capital funds won’t like Binances’ new venture.
Now, talented people from all over the world can pitch their idea to Binance first. In the end, who will understand a crypto idea better than the successful Binance itself which was once a crypto idea as well?
People will start to perceive Binance as the mother who gathers her children, feeds them, provides shelter, and watches them grow. Once they mature, Binance will have a major influence on these companies.
More than 500 applications were sent to Binance in the first season of the Incubator program. From that number, Binance chose only eight teams they will support.
Five hundred is a crazy number considering the current state of the crypto market. It only proves that builders keep building behind the scenes regardless of the heavy bear market, but also shows what a strong reputation Binance has to receive so many start-up applications.
One of the bootstrapped startups developed a new WhatsApp? Great! Binance will have a first-mover advantage to implement its services to the aforementioned startup.
This means more users in the Binance ecosystem, and this makes the goal of achieving 1/7 of the world population possible.
@CZ is on the hunt for the next unicorn and launching Binance Labs Incubator was one of the best possible moves on the crypto chessboard that has a high probability of paying off in the future.
Binance Coin (BNB) currently has the ability to lower the trading fees on the Binance Exchange. We will touch more on that in a second, but the reason we mention it now is that the BNB token is part of the whole Binance ecosystem.
As Binance and its various ventures grow, our BNB investment will grow in value along with it.
And heck, Binance Labs is just the tip of the iceberg of what @CZ has up in his sleeve.
Let’s talk Charity – Bringing BNB to the Skies
Yeah, we know! The topic of charity brings up mixed feelings.
One group will think: “Yay, helping poor people! Count me in”.
While the others think: “No thanks. Not giving my money to some company I don’t know and I’m not sure what they will do with it later”.
@CZ surely belongs to the latter. In April 2014, way before launching Binance, he wrote a short overview of transparent charities in which he explained a charity model based on Bitcoin’s blockchain.
Years later, he is finally able to turn the model into reality.
In 2018, Blockchain Charity Foundation was launched by Binance aiming to lay the foundation for charities donation policy once and for all.
The fact that @CZ wrote this piece of text much before Binance became a reality shows how serious he is about changing the current state of corrupted charities.
How does that bring BNB to the skies?
Charity work always breaks the ice and is good PR for the company.
In July 2018, Japan suffered from massive flooding that killed more than 100 people.
@CZ’s reaction was immediate
Our hearts go out to the victims in West Japan. @binance will begin with a $1,000,000 USD equivalent donation in either BNB, BTC, or JPY. We also ask our crypto partners to join us and help our friends in need.
— CZ Binance (@cz_binance) July 8, 2018
Now look what happened next:
Binance received attention from people outside of the crypto-circle. The Japanese government got money from this new crypto company to give aid to their people. @CZ makes sure people are aware of his brand.
People who are not aware of crypto will keep Binance in mind as a good organisation.
That’s a long-term game. When crypto will stand on edge of the mass adoption, people will have a choice of all sorts of platforms to use, and Binance will have the advantage of being recognised over its competitors.
@CZ’s charity not only helps people in need but it also indirectly impacts the investors in a positive manner. Charity activities strengthen the Binance ecosystem and the Binance Coin (BNB) investment as a whole.
Aside from the good PR created by charity, it is the people who are brought on board Binance by such activities.
Have you seen pictures of Mark Zuckerberg shaking hands with world presidents? Well, that’s what happens when your platform has more users than China’s population.
@CZ is on his way to equal Mark’s level of success and popularity.
@CZ making business in Uganda
Binance Team and the President of Togo
@CZ and Prime Minister of Lichtenstein
While moving fast, @CZ not only provides good PR for Binance but spreads crypto awareness like a plague with a positive vibe.
All the top-tier people he meets on his travels will spread the word among their top-tier friends, co-workers, and associates. That’s another bold move which strengthens the Binance Empire.
Binance Coin (BNB) Holds Strong
The current bear market has no mercy. It drags down every single crypto project out there.
Well, maybe aside of Maker’s DAI which passed the heavy stress test and still holds its peg to one dollar after ETH fell from $1300 to $100.
The cryptocurrency that somehow managed to withstand the heavy bear of 2018 was Binance Coin.
Unlike other cryptocurrencies, Binance Coin has actually gained in value after the massive crash in late Jan/Feb to August of 2018. (look at the red arrow)
Why is that?
The answer is simple:
Binance is the house that makes money regardless of market conditions. The investors were hedging their money either in stable coins or one of the few profitable companies.
During that red-marked period, Binance netted over $300,000,000 in profits.
But what happened to BNB since August 2018 to date where its price dropped from $14 to $5? Has the company found itself in financial trouble or stopped making profits?
No. Of course not.
Binance Coin was simply dragged down by the market capitulation that has been occurring in the recent months.
This is similar to what happened to Amazon during the dot-com crash. Although it was making money, its share fell by 94% in a span of 2 years.
Is Binance Coin going to experience a similar price pullback?
Even if that happens, it’s not going to last long. At the moment of writing, BNB is down by 75% since its ATH. On the other hand, at $5 it’s still up by ~4200% since its ICO price of $0.10.
The good news is: as long as the crypto market exists, Binance will make money from the fees.
Keep in mind that the crypto market is global and unlike traditional markets, the trading sessions are 24/7/365. Which means everything happens much more rapidly as the traders and companies compete on a global scale.
Even if the BNB price suffers and goes below ~$5, smart money will pick it up in a hurry.
Emphasis on Security – SAFU
On 3rd July 2018, Binance suspended trading, deposits, and withdraws on its platform due to irregular trades on Syscoin.
The crypto community was pretty worried, imagining the next Mt. Gox.
FUD was real.
Bogdanoffs almost picked up their phones.
That day was a tough situation for Binance not only from the back-end side but it also raised the question of how to assure its users that their funds were safe in the worst case scenario?
Binance was back in less than 24 hours announcing Secure Asset Fund for Users (SAFU).
In short, from that day, Binance has been allocating 10% of all trading fees received into SAFU and storing it in a separate cold wallet as an in-house insurance for Binance users if (or when) something goes wrong.
SAFU was one of the best things that happened to Binance this year.
The community quickly picked up that term and spread it over the crypto space making it the second well-known crypto word next to HODL.
@CZ could not imagine a better marketing campaign. Besides the Twitter memes, this video created by YouTube user Bizonacci deserves the spotlight.
SAFU video went absolutely viral. Aside from more than 400k views, the ratio of likes to dislikes was overwhelming and rare to see on any YouTube videos.
Why is some YT video so important for our BNB investment?
Hear us out.
SAFU has become a positive slogan of Binance and the community spreads the good word by itself. Memes and funny videos are the way to grab younger generations’ attention and for Binance, it works like a charm.
These memes will flow around the internet, increasing Binance brand awareness and more people are going to choose Binance rather than some other exchange.
SAFU is not only a competitive advantage in terms of funds security, but it also stands on the frontline of Binance user acquisition.
@CZ is very aware of this and continues using #SAFU in his Twitter posts and comments.
And all this, dear reader, positively impacts the price of BNB Coin as more people want to join the Binance ecosystem.
Sometimes you have to be taken down to your knees, in order to stand stronger.
The King of the Binance Empire
It was 2014 when this man sold his house to buy Bitcoins while it was trading at $600 only to see its price fall to $200 months later.
In the next 2 years, he won’t see Bitcoin’s price go back up to $600. Yet, he did not lose his faith and continued working on the blockchain technology.
@CZ has placed a huge bet on crypto and while patiently working, it paid off.
He’s the action taker, honest thinker, and innovator we need in this space.
Investing in Binance Coin (BNB) gives everyone the opportunity to be a part of his journey and profit as his empire grows.
Unlike many Founders of crypto companies, he doesn’t hide behind his company’s brand.
@CZ is the brand and the face of Binance. He is the front line.
We could easily compare him to Elon Musk who announces almost everything himself regarding Tesla, SpaceX, or the Boring Company. The attention of Elon’s posts has made other marketing agencies jealous.
Basically, it’s like saying: “Hey, this is me, my face. I am responsible for everything that’s going on here. For every success and failure, that’s me”.
@CZ actively participates in the Twitter game. He knows that this is the new way to attract attention to his empire and build a reputation with millions of people who follow him.
It is very important to note the style of his Twitter posts. Let’s take a look at some of them:
@CZ knows his people well. In fact, he is still one of them. One of us.
The way he interacts with his audience is comparable to a casual chat in a bar with friends, strengthening the connection between them and the Binance brand like no other marketing campaign could do.
The true power lies within ordinary people and @CZ connects with them in a down-to-earth level. And he truly empowers the communities across the globe:
Meetup in India
There is much, much more of this but we don’t have enough space on this page to paste them all;)
Binance takes over Africa
Africa Blockchain Conference 2018
Look at these shining Binance logos!
Africa – the continent on our planet that lags behind all others. This will change – China itself has invested over $60 billion in this continent alone since 2015, not to mention other countries looking to have a piece of the cake.
On 6 June 2018, Binance launched the first fiat-to-crypto exchange in Uganda, Africa and it was also able to handle 1.4 million transactions per second.
In the first week alone, more than 40,000 people registered. That’s truly impressive.
@CZ wants to take part in the economic development of Africa – a continent with very poor accessibility to banking and financial services. It’s worth noting that Uganda has one of the world’s youngest populations that will have a positive impact on the adoption of Binance services.
We believe the word will spread very easily in Africa, as Binance is the first reputable company to open an exchange there. Binance Uganda is different than Binance as it offers fiat-to-crypto ramp.
Here is what is going to happen next:
Binance quickly tapped into the whole continent with a population of 1,200,000,000.
Soon, it will become a go-to exchange for all these people as it has the first-mover advantage.
Once Binance spreads across the world with different exchanges tailored to specific regions, at some point, people might think that Binance is the crypto, just like many people believe that Google is the internet, or like many non-crypto people thought that Bitcoin was the Blockchain (or the other way around, depending on who you ask).
Once Africa accelerates in a way China did in the last 20 years, Binance will be there, established, waiting for masses to join.
What happens to Binance Coin (BNB) once Africans fully realise the potential of cryptocurrencies?
What’s BNB actually useful for?
Any exchange derives its profits from various fees it collects, like exchange or withdrawal fees. However, to really get started, you need a user-base of a certain size that will actually trade, withdrawal, deposit, and ultimately do some more things on your platform.
To get all this working and attract first users, an exchange needs initial funds, of course. One might get it through old-school investors or, as was the case with Binance, do an ICO of their own coin – BNB.
Initially, BNB was used to help bootstrap the Binance launch. Hence, it is no surprise that its utilities are closely tied with the exchange platform itself.
First and foremost, it can be used for discounted fees at Binance, although not forever. The discount decreases every year – in 2017 it was 50%; since the 20th of July 2018, it’s 25%; next year it’ll be 12.5%; and in the final fourth year of discounts, it’s going to be 6.75%. That will also be the last discount for paying fees in BNB you will receive.
Nevertheless, there is also another very good reason for acquiring BNB and that is Binance’s repurchasing plan. At the beginning of Binance, there were 200 million BNB tokens minted.
To incentivise investors to hold BNB, Binance used 20% of their quarterly profits to buy back BNB from the market and burn them. They will proceed with doing so until there is only 100 million BNB’s left.
What does all this mean for you?
As the law of supply and demand dictates, the coins you hold will be worth more. If the total market value for BNB initially was 200 million dollars, that would mean every BNB is worth exactly one dollar. Let’s assume that the market value stays constant, that is, all the coins are worth 200 million USD.
If we now destroy half of all the BNB coins, their overall market doesn’t change – it’s still $200 million. What does change is the value of every coin – it has doubled, and now it is worth two dollars.
By destroying these tokens which represent value, we don’t obliterate said value, we only get rid of the representation, hence making all other representing units worth more. The same principle applies to old-school money. If you burn a one dollar bill, you lower the supply of the USD and make every other dollar worth a little bit more.
We are proud to see that Binance followed in our footsteps and started their own crypto research platform;) Jokes aside, this goes to show again that Binance is expanding in so many directions just like Google does.
If you haven’t seen it yet, here’s the Binance Research section. At the moment, there are four publications and it’s exciting to see Loom Network as one of them considering we wrote an in-depth review of Loom Network back in November this year – a day after our publication of Loom.
Binance Research provides a very data-driven analysis of different cryptocurrency projects and they are on fire with four reports published in November alone.
2018 was a wild year – filled with tears and hope.
Some perceive the current market state as the end, but for us, it is just the beginning.
Without hesitation, Binance Coin (BNB) is our safest bet in terms of crypto investing as the company profits regardless of market conditions.
With @CZ’s leadership and long-term vision, we expect Binance to dominate cryptocurrency space and become as recognised as Google is today.
Time to fill your bags, dear reader. There is a long journey ahead, but certainly, the train has not left the station yet.
Are you in?
P.S. The London Letter was created in December 2017. Let us know what you think about what we do. Contact us at firstname.lastname@example.org Have suggestions, tips? Hit us up too!
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