Author: Jonney Liu

It’s the hottest exchange in town, and you’ve likely never heard of it. It currently has the highest transaction volume in the world, and it’s not even listed on CoinMarketCap.com.

The Rise of FCoin

FCoin, the China based exchange set up by the former CTO of Huobi, Zhang Jian began trading in early May. It has seen a meteoric surge in volume over the last two weeks. None of this is captured yet by major data outlets, since most of them such as Coinmarketcap.com have yet to add their data feed to their sites. And it truly is meteoric. You can see for yourself from a snapshot of last 24 hour $volume traded from their website below.

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In a previous CoinFi research analysis written by our very own Chief Data Scientist Alex Svanevik, we compared various exchange tokens using TVEV ratio, discovering that there is a simple model we could use to assess whether or not an exchange token is priced fairly in relation to other exchange tokens. In this post, we will attempt to value the Binance exchange token (BNB coin) from a cash flow perspective. The reasons for CoinFi’s fascination with exchange tokens are:

• The utility/token economics are generally well defined, making them easy to understand and value.
• Exchange tokens as a whole (especially Binance) have been widely used, circulated, and battle tested. Several of them have even had a series of buybacks.
• Despite the recent sell-off in crypto, exchange tokens have held up quite well, as shown in the graph below.

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