"CFA Cryptocurrency Gold Model" has taken 125 days from planning to production, and has been updated for 2 issues. It combines my personal insights on Web3.0 with the insights of many experienced traders. The content will be presented in multiple issues. The content is relatively dry/deep, so remember to collect it.
In the last issue, we talked about the first model "Web3.0 Golden Triangle Model". Today, we will show you how to apply the model to currency analysis. We will originally introduce the model to BNB to make a professional investment research report.
😼Warm reminder: This content is dry and long
First, we put BNB into our model. The model is designed to enable us to make reasonable analysis of the target more efficiently and logically.
In the last issue, we taught you the 1-3-4 arguments used in teaching, which means one goal with three supporting points and four arguments for each supporting point.
In this issue, since we are bringing up currency analysis, we are also analyzing BNB. In order to obtain more data, we used 5 support points, namely project background, technical strength, ecological value, team and community, and market potential.
In actual use, you can locate the support points according to the type of project or your goal. The more effective support points there are, the more rigorous the results will be.
In order to let everyone have a more intuitive understanding of the role of the model in analyzing projects, we will break down this project into 5 supporting points for everyone to explain.
Support point 1: Project background
① Powerful launching platform
Binance is the world's top cryptocurrency trading platform, and BNB, as Binance's ecological currency, has always maintained a strong market influence. At present, Binance's share of the global cryptocurrency trading market is as high as 30%, the number of registered users has exceeded 250 million, and the daily trading volume is stable at more than 100 billion US dollars. Among them, transactions involving BNB account for 15%. This powerful platform strength is like a solid fortress, providing a solid backing for the development of BNB.
In the third quarter of 2024, Binance's market share further increased, up 2.5% from the previous quarter. According to data from professional market analysis agencies, Binance is in the leading position in the industry in key indicators such as trading depth and liquidity. This not only reflects Binance's dominant position in the market, but also provides strong support for the value of BNB.
② Early successful layout
After BNB was launched in 2017, it quickly attracted a large number of users with strategies such as transaction fee discounts. Today, you can enjoy a discount of up to 60% when paying transaction fees with BNB. This strategy successfully attracted more than 5 million users in the early stage, laying a solid foundation for subsequent development. Currently, more than 2 million transactions per month use BNB to pay transaction fees.
Since its launch, users have saved more than $500 million by paying BNB fees. This makes BNB highly attractive to users from a cost-effectiveness perspective. At the same time, based on the analysis of user behavior, users who use BNB to pay fees have a relatively high transaction frequency and transaction amount, further enhancing the liquidity and value of BNB.
③ Continuous market demand
As the cryptocurrency market continues to develop, investors' demand for diversified assets is growing. BNB perfectly meets market demand with its multiple application scenarios. In the past year, the number of investors interested in BNB has increased by 40% to 8 million. Data from market research institutions show that 45% of investors surveyed said they would consider including BNB in their investment portfolios.
In the past six months, the search popularity related to BNB has increased by 30%. Through the analysis of search engine data, it can be found that the search volume of BNB has shown a continuous upward trend worldwide. This shows that more and more people are beginning to pay attention to BNB, and its market popularity and influence are constantly expanding.
④ Industry Trends
BNB has always kept up with the development trend of the cryptocurrency industry and has made early arrangements in popular fields such as DeFi and NFT. At present, BNB's application in these two fields continues to expand, becoming one of the leaders of industry trends. In the DeFi field, the number of projects related to BNB exceeds 2,000, with a total locked value of US$30 billion. Binance's NFT market transaction volume ranks among the top three in the world, with a monthly transaction volume of more than US$250 million, and 70% of transactions paid with BNB.
In the past three months, the application of BNB in the emerging field of crypto art has increased by 40%. Professional art market analysis agencies pointed out that the application of BNB in the field of crypto art not only provides artists and collectors with a new way of trading, but also expands new space for the value of BNB. At the same time, with the continuous development of the crypto art market, the application prospects of BNB will be broader.
This is the first support point of the model, the project background of BNB. We use BNB's ecological platform, early layout, market demand and industry trends to prove that the project does have a good background.
Support point 2: Technical strength
① Application of blockchain technology
BNB is issued based on Binance Chain and Binance Smart Chain, and the transaction processing speed is extremely fast. Binance Chain can process 20,000 transactions per second, with a handling fee as low as 0.00003 BNB. Binance Smart Chain supports smart contracts and provides developers with a wealth of development tools and interfaces. At present, more than 10,000 projects based on Binance Smart Chain have been launched, covering popular fields such as DeFi, games, and NFT. Last month, the total number of transactions on Binance Chain and Binance Smart Chain exceeded 50 million times.
The transaction confirmation time of Binance Chain is within 3 seconds on average. According to the data of blockchain technology performance evaluation agency, Binance Chain is at the industry leading level in terms of transaction processing speed and confirmation time. This makes BNB have the advantages of efficiency and speed in the transaction process, providing users with a good trading experience.
② Innovative smart contract technology
Binance Smart Chain's smart contract technology continues to innovate and supports a variety of complex business logics. For example, it supports innovative financial tools such as flash loans, providing developers with more possibilities. In the past year, the number of smart contract calls based on Binance Smart Chain exceeded 2 billion times, an average of 5.5 million times per day. The average execution time of smart contracts is less than 3 seconds, ensuring the efficiency of transactions.
Among the new smart contract-based projects launched last month, 30% used innovative contract functions. Professional technical analysis agencies pointed out that Binance Smart Chain's innovative smart contract technology has attracted a large number of developers' attention and participation, injecting new vitality into the ecological development of BNB. At the same time, with the continuous advancement of technology, the application scenarios of smart contracts will be more extensive, and the value of BNB will be further enhanced.
③ Safe and reliable technical support
Binance uses multiple security measures, such as cold wallet storage, multi-signature, SSL encryption and other technologies to ensure the safety of user assets. In the past year, Binance has successfully resisted 80 hacker attacks. Binance invests more than $200 million in security technology each year and has a team of more than 500 security experts to monitor Binance Chain and Binance Smart Chain 24/7. At the same time, Binance also cooperates with many internationally renowned security organizations to conduct vulnerability scanning and security audits.
Since its establishment, Binance's security system has never had a major security incident, and the user asset loss rate is less than 0.01%. According to data from security risk assessment agencies, Binance's investment and measures in security technology have made it extremely secure and reliable in the industry. This provides users with a safe trading environment and also provides a solid guarantee for the value of BNB.
④ Continuous investment in technology research and development
Binance invests heavily in technology research and development, investing more than $150 million per year to ensure that BNB can adapt to the ever-changing market and technological development. Last year, Binance launched a number of technological innovations, such as improved consensus mechanisms and cross-chain technology, which greatly improved the performance and usability of BNB. Binance's technical R&D team has more than 1,000 people, 80% of whom have a master's degree or above.
In the past six months, Binance's technical R&D team has submitted more than 500 technical improvement suggestions. Professional technical evaluation agencies believe that Binance's technical R&D team has strong innovation capabilities and professional level, and can continuously launch new technologies and functions to provide continuous impetus for the development of BNB.
The second supporting point is technical strength. We use the existing technical content of the project to illustrate the technical support of the project. This must be supported by real data, which makes our analysis more accurate.
Support point three: ecological value
① Promotion of DeFi ecology
DeFi projects on Binance Smart Chain are developing rapidly, and BNB plays an important role in them. BNB can be used as collateral to participate in activities such as lending and liquidity mining, providing users with abundant investment and income opportunities. At present, the total locked value of DeFi projects on Binance Smart Chain is US$25 billion, and US$5 billion is used as collateral in BNB. In the past three months, the TVL of DeFi projects related to BNB has increased by 30%.
Last month, BNB's yield in the DeFi field reached an average of 15%. According to data from DeFi market analysis agencies, BNB's yield in the DeFi field is at a relatively high level in the industry. This has attracted a large number of investors to participate in DeFi projects, further enhancing the value and liquidity of BNB.
② Expansion of the NFT market
BNB also performs well in the NFT market. Users can use BNB to purchase and trade NFTs and participate in the development of the NFT market. Binance NFT market transaction volume ranks among the top three in the world, with a monthly transaction volume of more than 250 million US dollars, and 70% of transactions paid with BNB. The number of NFT works exceeds 1 million, covering multiple fields such as art, music, and games.
In the past two months, the prices of popular NFT works on Binance NFT market have increased by an average of 25%. Professional NFT market analysis agencies pointed out that the application of BNB in the NFT market provides users with more investment options and trading methods. With the continuous development of the NFT market, the value of BNB will also be further enhanced.
③ Blockchain Game Market
BNB also has a certain influence in the blockchain game market. Many blockchain game projects use BNB as in-game currency to provide players with more gaming experience and profit opportunities. Currently, there are more than 50 blockchain game projects cooperating with BNB. Players can use BNB to buy game props and participate in game competitions. The number of transactions using BNB in the blockchain game market exceeds 1 million times per month.
In the third quarter of 2024, 20% of the newly launched blockchain game projects chose to cooperate with BNB. According to data from blockchain game market research institutions, the application of BNB in the blockchain game market has brought more opportunities and benefits to players and developers. With the continuous development of the blockchain game market, BNB's application scenarios will become more extensive.
④ Cross-chain ecological connection
BNB actively promotes cross-chain technology and has achieved cross-chain connection with 30 mainstream blockchain networks. This allows BNB to circulate in a wider ecosystem, greatly enhancing its value and influence. Last month, BNB's cross-chain transactions exceeded 200,000 times, and the amount of cross-chain transactions reached US$500 million.
In the past six months, the amount of BNB's cross-chain transactions has increased by 40%. Professional cross-chain technology analysis agencies believe that BNB's cross-chain technology provides users with more asset allocation options and trading opportunities. With the continuous development of cross-chain technology, the value and liquidity of BNB will be further enhanced.
We collect data through comprehensive ecological analysis of the project and finally prove whether the project has investment value.
Support point 4: Team and community
④ Team strength
Binance's team is very professional, consisting of blockchain technology experts, financial analysts, marketing personnel, etc. 90% of the technical team have a master's degree or above, and the financial team members have an average of 15 years of experience in the financial industry. The Binance team has more than 4,000 people distributed around the world. The technical R&D team accounts for 40%, the marketing team accounts for 30%, the financial team accounts for 20%, and other teams account for 10%.
In 2023, the Binance team won more than 10 industry awards. Professional industry evaluation agencies pointed out that the Binance team has performed well in technological innovation, user services, and marketing promotion, and has been widely recognized by the industry. This provides strong talent support and professional guarantee for the development of BNB.
② Continuous innovation capability
The Binance team continues to innovate and launch new products and services to enhance the competitiveness of BNB. Last year, a number of innovative initiatives were launched, such as new trading products and services. More than 80 new features and services are launched each year. Last month, an innovative financial product based on BNB was launched, which received widespread attention from the market. It attracted more than 100,000 users in one week.
In the past six months, the user growth rate of Binance's innovative products has reached 50%. According to data from user behavior analysis agencies, Binance's innovative products have attracted a large number of users' attention and participation, injecting new vitality into the ecological development of BNB.
③ Community Growth
BNB has a very large and active community. The official social media accounts have over 15 million followers, and the community forum has 8 million active users. The number of community members grew by 50% last year to 12 million. Community members come from all over the world, including investors, developers, enthusiasts, etc.
Last quarter, the average activity of new community members was 10% higher than that of old members. Professional community analysis agencies believe that BNB's community is growing rapidly and community members are highly active, providing a strong user base and community support for the development of BNB.
④ Active community
Community members actively participate in the construction and development of the Binance ecosystem, organize events, make suggestions, etc. Last month, the number of participants in community activities exceeded 2 million, and the number of X platforms and squares exceeded 1 million. Based on community suggestions, Binance has also launched a variety of new features, which have been widely praised by users.
In the past two months, the number of valid suggestions put forward by community members has exceeded 5,000. According to data from community interaction analysis agencies, BNB community members actively participate in community building and development, and provide valuable suggestions and feedback for Binance's products and services. This helps Binance continuously improve and perfect its products and enhance user experience.
We can judge the team's capabilities by analyzing the team components and the team's innovation capabilities. We can dig deeper into the team through x platform, etc., and determine whether the project is in healthy development by analyzing the community activity and community growth rate.
Support point 5: Market potential
① Market share
At present, BNB's market value ranks among the top five in the global cryptocurrency market, and its market share continues to expand. Last year, its market share increased by 20% to 8%. Market forecasting agencies believe that BNB's market share is expected to grow to more than 15% in the next three years. BNB's market performance has attracted the attention of many investors, and its price trend has become an important indicator of the market.
Last month, BNB's market share increased by another 1%. Professional market analysis agencies pointed out that BNB's market share has a clear growth trend. With the continuous development of the Binance ecosystem and the increasing market recognition of BNB, BNB's market share is expected to continue to expand.
② Technology upgrade and network expansion
Binance continues to upgrade its technology and expand its network to improve the performance and availability of BNB. It has introduced a new consensus mechanism and expansion plan, which has increased transaction processing speed by 30% and reduced handling fees by 20%. After the network expansion, the throughput of Binance Chain and Binance Smart Chain has increased by 50%, which can meet the needs of more users.
In the next six months, Binance plans to increase transaction processing speed by another 20%. According to data from the Technology Development Planning Agency, Binance's technology upgrade and network expansion plans will provide stronger technical support and performance guarantees for the development of BNB.
③ Capital reserves
Binance has sufficient capital reserves, currently over $10 billion, to cope with various market risks and challenges. Last year, the capital reserves increased by 30% to $13 billion. The increase in capital reserves provides a guarantee for Binance's business expansion and technology research and development, and also lays the foundation for the stable development of BNB.
Binance’s capital reserves are sufficient to support large-scale technology research and development and market expansion in the next two years. Professional financial analysis agencies believe that Binance’s capital reserves are sufficient, providing solid financial support for the long-term development of BNB.
④ User growth
As the Binance ecosystem develops, the number of BNB users continues to increase. Currently, there are more than 30 million users, and the number of users increased by 60% last year to 48 million. Market forecasters predict that the number of BNB users is expected to grow to more than 100 million in the next three years.
In the third quarter of 2024, the growth rate of new users of BNB reached 15%. According to data from user growth trend analysis agencies, BNB's user growth rate is relatively fast. With the continuous expansion of the Binance ecosystem and the strengthening of market promotion, the number of BNB users is expected to continue to grow rapidly.
Finally, we analyze the future potential of the project through market share, technology upgrades, reserve funds and other aspects. Of course, if we apply the template analysis to the Tugou project, the support points selected will be different. We can use different supports for analysis according to the type of project and use them flexibly.
🙌Everyone must be tired after reading this. This is a case study that brings our previous "Web3.0 Golden Triangle Model" into the currency analysis, allowing us to make investment research reports faster and more logically, or provide ourselves with accurate analysis.
😡Remember: the data must be true. As a blogger, investment researcher, or researcher, every investment report needs to face the facts. You cannot charge fees and make random statements. This is the quality of a professional researcher.
Bosses in front of the screen, hurry up and ask your secretary to pick up a pen and paper to record it. Who doesn’t want a perfect industry report before investing?😻
The road of Web3.0 researchers is lonely. I was just reading the Tao Te Ching recently and I felt like writing a paragraph.
The Tao that can be told is not the eternal Tao.
A name can be named, but it is not an ordinary name.
Namelessness is the beginning of heaven and earth. Name is the mother of all things.
Therefore, I want to see its wonders.
Long has, want to see its edge
These two come from the same source but have different names.
Mysterious and mysterious, the door to all wonders
The "CFA Coin Circle Gold Model" is still being created...
A super large-scale Web3.0 popular science teaching creation, please stay tuned and see you next time!
