#BNB hit a historical ATH as expected...
When the entire market is collectively FUDing "value coins",
At the same time, "value coins" with real good empowerment can completely ignore the adverse effects of the sector and pull the market against the trend
This shows that the problem of "value coins" is not that the FDV is too high,
but whether the relevant tokens are truly empowered with "value"
The FDV of the seven major technology giants in the United States is hundreds of trillions,
and they can still continue to hit new highs
Let's apply the valuation logic of the stock market to make a horizontal comparison
Let's take a look at what#BNBdid right to become the leader of "value coins" and what is worth learning from?
First of all, the main factors that determine the market value of a listed company are:
●EPS (earnings per share): profit/dividend
●PE (price-earnings ratio): liquidity premium
Blue-chip stocks in emerging industries are basically given by the market
A relatively high PE (price-earnings ratio)
Look at the financial report after a while
If EPS (earnings per share) also achieves high growth
That is to say, a beautiful "Davis double-click" is completed
1. From the perspective of EPS (earnings per share)
Substitute most of the current "value coin" projects
Their business model does not generate operating income
So let alone profit/dividend
At present, the entire industry can generate actual income
The sectors that complete the closed loop of the business model
Only trading platforms (CEX, DEX) and various Public chain/side chain
Therefore, this is also the main direction that the top funds are competing for layout
2. From the perspective of PE (price-earnings ratio)
In the absence of EPS (earnings per share), most "value coin" projects can only give a high FDV (valuation) through PE (price-earnings ratio) when the market liquidity is relatively good
Once liquidity weakens or the new issuance is too fierce, its actual market performance is even worse than some meme coins
Because its "value connotation" is more complicated than the "cultural narrative" of meme, it involves the relevant technical ecology, and if it is impossible to explain how its "value" generates actual income and truly empowers the relevant token holders, the market will naturally not be able to pay for it
Let's take a look at how #BNB# does it?
●First of all, Binance's LaunchPad/Pool, as the most popular IEO at present, can be regarded as a kind of EPS (earnings per share)
Participate in the mining of some new projects by staking BNB
Thus, they can obtain the "dividend" income from their empowerment
● In addition, let's compare it with the seven major technology giants in the United States. When the market liquidity is poor or the stock price performance is sluggish, the company will come forward to carry out related operations of "buying back stocks"
BNB has been destroyed since its issuance in 2017. A certain proportion of the platform's net profit will be used to "buy back" BNB
This is unmatched by most "value coin" projects without revenue, because these project parties can only sell tokens in the market after unlocking
● Finally, the BNB chain, also known as the Binance Smart Chain, further expands the application scenarios of BNB to the public chain/side chain track
The BEP-95 mechanism burns a part of BNB as a method of gas fee on the BNB chain, further strengthening the closed loop of "buying back" BNB and destroying deflation
It can be compared to the "foreign investment" of listed companies
Thus, BNB spans the two major tracks of trading platforms (CEX, DEX) + public chain/side chain that have been verified in the industry at present
A set of combined punches is considered to have fully empowered BNB
So the current market performance is actually the result that should be there
#Binance