Venture Investor: Binance is Systemically Important To Crypto
Binance Chain Is Paramount To BNB
It isn’t a secret that Binance has been ‘popping off’ recently. Over recent weeks and months, the popular cryptocurrency exchange has embarked on a number of notable ventures, allowing its in-house crypto asset, BNB, to surge higher.
Yet, some have begun to question the long-term viability of the cryptocurrency, especially as the Malta-registered Binance will continue to diminish the reward structure for holders of BNB on its flagship exchange. Kyle Samani, the managing partner of blockchain investment group Multicoin Capital, however, says that the upstart is well on its way to ensuring that there is long-term demand (meaning value) for BNB. He broke down his thoughts in a recent Twitter thread.
Today I'm excited to share Multicoin Capital's analysis and valuation on Binance coin $BNB ! It's available in English, Chinese, Korean, and Japanese
He remarked that the long run vision of Binance is to see “all value” in its expansive (and rapidly growing) ecosystem “accrue to BNB directly.” Binance’s in-house blockchain and decentralized exchange, named Chain and DEX respectively, is purported to be “the first step in that direction.”
Samani remarked that while platforms based on 0x technology have failed, due to fees regarding canceling orders and the lack of “deterministic order execution,” Chain solves all this. Chain’s crypto exchange will offer “lower” fees than Binance’s flagship exchange, even while its UX, trading speed, and other facets somewhat match its centralized counterpart. In other words, “Binance is aiming to disrupt itself before someone else does.” Thus, Samani concluded:
The long term vision is for all value to accrue to BNB and the amount of effort Binance is putting into Binance chain, the opportunity for BNB becomes clear. BNB has an absolutely massive opportunity ahead of it.
The investor added that from his firm’s perspective, Binance remains the most “systemically important organization in crypto, bar none,” drawing attention to the company’s vast array of facets, positive reputation, and notable profits (even a so-called “nuclear winter”). Samani added that with the crypto-focused startup also looking to launch a fiat on-ramp, security token exchanges through Maltese regulators, among other arms, “the opportunity [that has been] set is massive.”
While it may sound like the Multicoin representative’s comments could be somewhat speculative, Changpeng Zhao of Binance lauded the thread. Retweeting the thread, the crypto insider even called it “almost scary,” drawing attention to how accurate the fund’s comments and noticings were.
Samani’s Crypto Expectations For 2019
The Multicoin managing partner’s recent thread on BNB comes weeks after he sat down with Business Insider, a world-renowned business news outlet, to discuss his crypto expectations for 2019. Per previous reports from Ethereum World News, Samani told reporters that well-funded, high-potential blockchains will pose a threat to Ethereum’s supremacy. The Multicoin executive noted that Cosmos and the a16z-backed Dfinity, two projects that found their roots in 2017, could make a move on Ethereum as the go-to platform for smart contract development and deployment in 2019. Samani added that he expects for the percentage of total blockchain developers working on the long-standing platform to shrink, especially as 2019 elapses.