Previously, we’ve analyzed crypto exchange tokens using the TVEV ratio - token value / exchange volume . The TVEV ratio compares the price of an exchange token to the traded volume on the underlying exchange. Conceptually, it’s not too far away from the P/E ratio which is often used when valuing equities. After our last post, many of you reached out and asked us to analyze a wider array of exchange tokens, beyond just Binance Coin, Huobi Token, and KuCoin Shares. So, in this post we’ll have a broader look at centralized exchange tokens. If you’re waiting for our analysis on decentralized tokens (such as 0x, Bancor, and Kyber), do not despair - we’ll share that one soon as well.
We’ll soon be launching the CoinFi News feature, where you can be the first to know the news that moves the crypto market. While we’re still busy putting everything in place for the launch, we thought we’d give you some insights from the data that underlies our News feed. In this post, we’ll look at:
- Which coins are mentioned the most in the CoinFi News feed?
- What are some coins that have been experiencing an increase in mentions lately?
- How does number of news mentions correlate with trading metrics, in particular transaction volume?
In many ways, exchange tokens are among the most straightforward token models out there. The Binance Coin (BNB) gives you a 50% discount on your Binance transaction fees. To compare this with something a bit more tangible, many cities have a pretty similar system for public transportation. Buy a card with 10 metro rides up front and you’ll get a 10% discount. The most obvious difference between your metro card and BNB tokens in your wallet is that BNBs have a capped total supply.
One of the beautiful things about Ethereum is that every single transaction happening on its blockchain is open to the world. From a data perspective, this means that there is an abundance of interesting analyses we can perform, and insightful metrics we can calculate from these transactions. In particular, one area that has not yet received much attention yet is token retention - that is, what % of wallets hold onto their tokens over some time. Given the popularity of “HODL”, it’s quite surprising that we haven’t seen many hard metrics on token retention yet (although Dhruve Bansal did perform an excellent piece of analysis on Bitcoin’s “HODL Waves”). After all, the transactional data of ERC20 tokens are readily available for us to study. Dealing with Ethereum data is not exactly plug-and-play, but at CoinFi we ingest these transactions as a part of our data warehouse, allowing for easy access and analysis. But before digging into the data, let’s look at how we define retention.
Like most of the ICO space, the CoinFi team follows the work of Ian Balina - a massive influencer with hundreds of thousands of followers across Telegram, Youtube, Twitter and Facebook. His endorsement is widely believed to have a huge impact on the success of an ICO. Most people in the ICO space would agree that at this point, a positive mention by Balina gives a lot of exposure for an ICO. But what is the impact of an Ian Balina mention? Read on to learn how we quantified the Ian Balina effect.