Back in June, I was researching NEO (Ant Shares at the time) reading every reddit post , watching every move as i had invested in those “ant shares”, I see a comment on a sub-reddit “Binance ICO” with a link, I click the link and find a Chinese website with nothing in English except a timer running down with a few hours leading to something, being the gambler that I am, I managed to use google translate and downloaded the White-paper, shortest I’ve seen yet, most convincing , the plan was clear , invest in an exchange! Finally, something solid, now i need to verify if this website is legit and the timer is ticking with no idea what the timer will lead to , is it the ICO date? or something else? I had no idea ..

Anyways I saw a video on youtube, researched the founder, then found Da Hongfei on the advisory board and found some links in Chinese which basically confirmed that.. I had just recently participated in a few successful ICOs, taken with those profits I decided, its a Chinese exchange who am i to judge. The timer kicked in, I registered for the ICO. Structure was different from normal ICOs but the whole ICO ran through their website, with no glitches or hiccups. It was a wonderful mechanism. Best Decision in my life, Exchange opened afterwards started trading with decent volumes, I bought more BNBs and I am still buying since then.. (BTW for another discussion, I suggest for Binance to implement that the same ICO structure on new ICOs running on launchpad, as the current one sucks, this horse race mechanism is just so bad, most of us cant get in-time.)

Personal take on BNB, Website development has been the most incredible I have ever seen a website being developed , How the hell did this team pull this off? They just completely obliterated any expectations i have with every feature they add, the website was barely a trading platform with a few functionalities, half of which were in Chinese, it transformed into the most multi-lingual, user friendly, exchange I have seen, and after all that they introduced everything anyone in crypto could’ve dreamed of, from competitions to ICOs. This my friends, and this alone, is just enough reason to trust that these guys actually, for once in crypto, know what they are doing!!!

Never have I seen something progress so fast and so good seamlessly.. One memory I have about it, when I started trading there, while the china FUD was coming out, i decided to pull some BTC out of Binance just for safety reasons, transfer wouldn’t go through for an hour “processing” . I decided to contact support and I find the usual chatbox , so not expecting a reply i just chatted and they actually replied to chat within seconds! A few minutes later my BTC was released!! Who and which exchange has a chatbox that actually works? NO ONE , only those guys!!! Again, this was just reason enough to add more BNB..

The actual calculation & meat behind all this

200 M BNBs issued, 100 M in circulation: (I will forget about the other 100M in my discussion as it is pointless to discuss their fate):

From a profit Standpoint Binance will buyback BNB’s with 20% of their netprofit which includes new listings and transaction fees. I’m gonna forget about listings although they have listed more than 100 coins this quarter, collecting tremendous fees but I will assume its Zero, cancelling that with the promotions they do on new coins.

I will focus on the trading volume revenue stream for Binance, and try to make a very conservative estimate on Valuation of BNB. This I compiled myself from CMC historicals:

Assumptions in the table 1:

1) Everyone is using BNB and gets the 50% discount so Binance revenue generated is at the minimal they would generate.

So based on the above, transaction volume has increased 61.5 x and so did revenues within 3 months, that is INSANE!!

I will extrapolate, I will use many conservative assumptions but, from this calculation I will arrive at a minimum value for Binance, which i think is just not fair yet, indicative of how under appreciated BNB is.

Assunptions for table 2 below:

1) Binance First quarter trading at the highest number 65 Million , 10 Million in profits is not an assumption it is real as the buyback was around 2 Million USD buying back 980,000 coins so this means that other revenue sources generated more money for them. (The numbers are clearly wrong in this one but i just needed to show that most revenues in first quarter came from other stuff)

2) 2nd quarter Average is 1 Billion which is very conservative , and i will 5x the costs of the first quarter (which is also very very conservative)

3) 3rd quarter 2 Billion which is also very conservative , and I will increase costs by another 2.5 folds (which is unreasonable but I want to explain how profitable they are )

This only explains the insanity of the situation that Binance is in, they are the best exchange by miles, the BuyBack at 7 Million is very conservative and at a rate of 10 Dollars/ coin they would buy up 1.5% of the available coins just this quarter. Now , I originally come from a finance background and a real valuation is difficult without actual financials yet, BUT, with a conservative estimation as above you would be able to create a minimum viable valuation financially and believe me, no exaggeration whatsoever (infact we are just pulling the lowest numbers available and lowering them):

65 Million USD net profits for the next 3 months and assuming 0% growth in anything just maintaining the minimum of the minimum I will multiply that figure by 4 to get the full year profits starting 2018:

65 M * 4 = 260 Million USD in net profits for 2018!!!!

260 Million in traditional businesses with 30–40% growth would get a profit multiple (P/E) between 30–50x , heck Im gonna use 20x on 0% growth = thats 5.2 Billion USD

Even if we divide that number by 2 we would get 2.6 Billion Valuation which is still 2.6 x compared to market cap for BNB when its 10 Dollars.

My Fair value range for BNB is 35 Dollars at a minimum, My personal Fair value would easily be 65 USD, and not gonna say my highest fair value so no one would think I’m pumping in anyway. I just think this a phenomena you will never see in your lifetime again, the most undervalued company I have seen in my life. I will give another hint here, this is only and solely based on one revenue stream which is trading, other revenue streams are obviously big because in the 1st quarter Binance barely generated any trading revenue and yet they were able to come up with a 10 Million USD net profit !!!

Last update, as this occured recently, (Keep in mind my valuation assumes zero Growth , one revenue stream, does not include the increase below)

Binance has trading volume increased to 5.88 Billion USD in 24 Hour dwarfing the 61.5x I used, to 90x increase in volume traded within 3 months!!! Binance CEO, CZ, came out at an interview and said: “CZ reckons the current number of users, standing at 3.4million and climbing by 100,000 a day, could easily scale to 50million or 100 million” This is the most utilized coin in blockchain, it has always been my theory that something good would come out of ETH, all transactions happen on Binance, so the ETH network is not affected in traffic, but if this coin were to transact outside of Binance, it would have more transactions /sec than ETH network can handle. Thats why I call it the King of Crypto. Not only is the team looking on utilizing on Binance, the coin is getting out of the Binance environment, they just had a partnership with Gifto, people can gift BNBs on their platform , check it out here.

Good luck all, happy trading, I will HODL BNB and keep buying as this is the most solid coin I’ve seen since i began trading, also please feel free to comment on my calculations as I usually get this stuff right , i have done this exercise on everything i ever traded, and it only shows in every way I calculate it, that this is a gold mine.

The future is bright for BNB. With so little profit at the beginning they managed to become the number 1 exchange, now with all this profit those guys will bring BNB to the masses in one way or another, just wait for them. Its so undervalued right now without any growth and at bare minimum revenues, and highest cost imaginable.

Thank you CZ, thank you team BNB you continue to impress..

*PS sorry for not having fancy graphs, but all they do is asthetic takes us away from core subject : BNB , the king of crypto

For those of you who liked my views I hope you hit me up with some BNB’s @ this address : 0x942c0d5898512495d3Def5bACe753bBE61c8217E