BNB, HT, and FTT Experience a Surge Ahead of Coinbase Listing
Since Coinbase announced its listing, its valuation has gone from 70 billion U.S. dollars to its current value of 91.5 billion U.S. dollars. The direct listing of the exchange had made investors re-examine the future potential of digital currency exchanges and cryptocurrencies. In the past few weeks, the three major platform-derived currencies BNB, HT, and FTT have risen several times.
Since Coinbase announced its listing, its valuation has gone from $70 billion to its current value of $91.5 billion.
The direct listing of the exchange makes investors re-examine the potential of virtual currency exchanges and platform currencies. In the past few weeks, three major crypto platforms Binance, Huobi, and FTX have seen their native tokens BNB, HT, and FTT increase.
The following are the recent gains of the three cryptocurrencies:
|
|
January |
February |
March |
Total since the beginning of 2021 |
|
BNB |
18.60% |
374% |
43.80% |
1545.87% |
|
FTT |
92% |
134% |
54% |
825% |
|
HT |
57.90% |
92% |
22.50% |
415.95% |
As of April 12, BNB had the best overall performance since 2021. It has risen by 1545.87% since 2021. FTT followed by an increase of 825%. In comparison, HT has not increased by as much, surging by 415.95%.
Coinbase will be listed directly on the Nasdaq on April 14 under the trading code COIN. What impact will the upcoming listing have on these platform coins?
A reasonable valuation is always conducted based on the financial statements provided by the cryptocurrency exchanges. However, the four major exchanges currently do not provide publicly available financial data, so there are certain difficulties in valuation.
Therefore, we choose the burned token amount for every platform as a criterion for valuation. From the perspective of supply and demand, burning a token leads to deflation, which also reflects the profitability of the platform, and often has a certain effect on the digital asset's price.
Choose Coinbase's profit benchmark "platform cryptocurrency burned amount" to get a rough estimate of the four major platform exchanges.
According to information submitted by Coinbase to the U.S. Securities and Exchange Commission (SEC), Coinbase's annual revenue in 2020 exceeded $1.2 billion.
Token burn amount of major exchanges
Binance has completed the 14 BNB quarterly burn, totaling 3,619,888 BNB burned. The BNB burned this time is worth $165,791,000.For the year 2020, approximately worth $346 BNB million has burned.
According to Binance CEO Changpeng Zhao, Binance's net profit is expected to reach $800 million to $1 billion in 2020.
In February 2021, Huobi Global burned 5.385 million HT (about $69.709 million USDT), which is 19.85% higher than that in January. In 2020, a total of approximately $200 million of HT was destroyed
FTT burned 10,771,361 FTT with total value $587,254,575. According to reports, approximately $2 million of FTT will be destroyed in 2020.
Since Binance’s current trading volume ranks first among all exchanges, if Coinbase’s 1.2 billion net profit makes it a valuation of $100 billion, then Binance’s valuation should even exceed $100 billion(assuming $100 billion).
If the same standard is applied to other exchanges, then the net profit of the three major exchanges in 2020 should be：
| Binance | FTX | HT | |
| Burnt value | $346 million | $42 million | $200 million |
| Estimated profit | $1 billion | $0.121 billion | $0.578 billion |
| Estimated market value | $100 billion | $12.1 billion | $57.8 billion |
| Platform cryptocurrency price | $602 | $54.02 | $22.05 |
| Platform cryptocurrency market value | $93 billion | $5.096 billion | $4.109 billion |
| Market value gap | 93% | 41% | 7.10% |
Based on Coinmarketcap on April 12Image source: Shutterstock
