A new report states that the steady steady expansion of cryptocurrency giant Binance is a calculated effort to position itself as the most important player in the emerging market. The author borrows the term "Blitzscaling" to describe the business plan.
Although it is possible that his most recent efforts are not yet yielding large-scale results, the authors state that Binance's expansion into almost every corner of cryptography will eventually lead to the exchange of the cornerstone of an entirely new financial system. For this reason, those who write the report say that the Binance coin (BNB) is very rare.
Could Binance Become a “Neo-Bank of the Future”
A new report published by Multcoin Capital argues that Binance, one of the largest and most easily diversified cryptocurrency exchanges on the planet, is positioning itself to be the center of an entirely new financial system. Tusshar Jain's report, as well as the author of an article, says that although the company's aggressive expansion is not yet yielding massive results, the company is being configured to describe itself as “neo-bank of the future”.
Jain borrows a term from Reed Hoffman, the founder of LinkedIn. In an article before the rise of retail giant Amazon, Hoffman uses a term he coined in previous works, "Blitzscaling":
"When a market is at stake, the risk is not inefficiency: risk is too safe to play. If you win, efficiency is not so important; if you lose, efficiency is completely irrelevant. Over the years, many have criticized Amazon for its risky strategy of consuming capital without consistently earning profits. "
Of course, the two examples are somewhat different. Binance's $ 15 million ICO in 2017 gave him ample room for maneuvers in his early days. However, instead of only enjoying the rewards for creating a highly popular cryptocurrency exchange, the company has continued to expand, offering new products despite the 2018 market downturn and current price uncertainty.
The report mentions 12 new and important Binance products or initiatives launched in rapid succession as examples of its proper expansion. These include futures, margins, loans and options, as well as innovations. Such as the possibility of using the balance held in the exchange for guarantee requirements and participation in the platform.
Jain Comments:
"Binance is growing rapidly not only in the crypto bag market but in the entire global Neobank market."
For this reason, multcoin capital researchers believe that the Binance (BNB) currency has not been undervalued. The report mentions recent improvements in the BNB alleged value proposition. These include holders' airdrops, BNB is the original token of the Binance chain and the Binance team burns its currency holdings. The researchers write:
"Given the current state of the exchange token landscape, Binance's market-leading position, willingness to copy competing products and to provide more value to token holders in its history of accommodating the BNB token economy. We believe That BNB is very low at current prices.
Typically, given the generally increasing valuation of Binance. The CEO of the exchange, Changpeng Zhao, tweeted about his content for his approval.
Valuable data or pump and dump?
Unfortunately, the report smells of an effort to increase interest in Binance Coin. As the authors themselves admit, Multcoin Capital owns BNB as part of their own portfolio. While the analysis of Binance's business strategy from one of the other successful companies is interesting. The open links with BNB's performance by an interested party do not make them more attractive readings.
Apparently, some of those interested in the cryptocurrency market felt this way about Binance's recent report:
