Former Coinbase employee and founder of 1confirmation, Nick Tomaino, believes Binance Coin (BNB) is the best altcoin to short right now.

Binance’s competitive edge comes from its minimal know-your-customer (KYC) requirements and trading limits, along with aggressively adding new coins consistently. This is what has allowed the world’s largest cryptocurrency exchange to have a 40 percent market share in just two years.

Does this mean that Binance Coin is a good long-term investment? According to Nick Tomaino, not really.

The Case Against Binance Coin

In a recent tweet storm, Tomaino lays out his case why Binance Coin’s long-term prospects are not looking too good. He bases his case on the fundamental assertion that Binance has not really pushed the space forward in any meaningful way — with the UI/UX being “worse than many decentralized exchanges.”

Binance Coin (BNB), being a product of a centralized company, should give true cryptocurrency proponents some pause. The bullish case for BNB relies on either believing to Binance will continue to grow or successfully transition to a decentralized exchange model that will be widely used. (Keep in mind that expanded growth will require fiat onramps and institutional investors on its exchange.)

Tomaino admits that if Binance is able to pull off the creation of a DEX, he may be proven wrong. However, he still asserts that investing in a coin with over $1B market capitalization for a product which doesn’t exist seems like a high-risk bet.

He also points out that BNB, unlike other cryptocurrencies, does not have a legitimate community. It doesn’t stand for much, other than making money. It is a community of believers, Tomaino says, that gives cryptocurrencies value in the long-run. It is on these grounds that those BNB holders will just move on to the next money-making opportunity, in due time.

Other prominent analysts, however, have different opinions.

Do you think Binance Coin (BNB) is still a good long-term investment? Do you think Binance will be successful in creating its DEX? Let us know your thoughts below!