Lets talk about Binance (BNB)
So in our crypto world of promises, one company and cryptocurrency is actually doing what they said they would do – making good money by any standard. Binance started about 6 months ago and has grown to the 4th largest exchange with around 600 million dollars going through their exchange every 24 hours.
99 million tokens are in circulation currently, valuating Binance at around 220 million. Lets put that into perspective: at 0,05% fees when you use BNB coins to trade Binance is pulling in 3 million dollars a day. This company is the picks and shovels store in the old gold rush analogy. Over a year of operation Binance will have income over 1 billion… what does that tell you about valuation?
Not just that, but Binance is using 20% of their profits to burn BNB coins until 100 million are burned. Lets assume that over this quarter Binance realises profits of about 90 million (a conservative estimate in my view). The burn on this quarter alone would be about 9 million BNB coins – or 9% of all coins in circulation.
So far it is a mystery to me as to why the BNB coin isn’t performing better. The closer we get to the announcement of the next burn, the higher the price will go…