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Bitcoins - about to hit $5,000 per coin today!
gib:
--- Quote from: obsidian on October 09, 2025, 12:02:00 PM ---That analogy doesn’t really hold. BNB isn’t just a “stock” — it’s the native token of a full smart-contract blockchain (BSC), with ~$14B in stablecoins and major DEXs like Aster and PancakeSwap. It has real on-chain utility, unlike Nvidia shares.
https://www.cointribune.com/en/binance-boosts-aster-whales-quietly-accumulate/
https://www.coinspeaker.com/aster-price-prediction-binance-founder-announces-1-billion-ecosystem-fund/
https://defillama.com/stablecoins/chains
Binance is the largest exchange in the world. BNB holders get trading fee discounts, it can be staked, and tokens are regularly burned. With roughly 7 BNB for every 1 BTC in existence, it’s actually more scarce than the current BNB:BTC price ratio suggests.
--- End quote ---
I think you are again (deliberately?) confusing concepts.
In my view, BNB really is akin to a company which has issued shares as an unregistered security. Maybe, in crypto-speak, a better term would be a "utility token". Either way, the point here is that it makes money, through trading revenues derived from the exchanges it operates, is used to pay transaction fees and access services within the Binance ecosystem etc. With Coinbase, you have listed shares trading on the stock market. With Binance, you have their token. In both cases, value accumulated to the share based on performance of the underlying business. Which is when assessing the value of either, you need to look at traditional financial metrics - revenue, growth, debt, profit, profit margin, etc. Coinbase could pay out, (or retain) any profit. With BNB, they simply retain the profit which is then reflected in the value of the token. As for "burning", this is akin to a reverse stock split or a buy-back. So, BNB can burn tokens. And Coinbase can buy back stock. Mathematically its the same concept. Which is why I explained, just because BNB trades as a "token" it makes no sense to treat it as Bitcoin. Of course you can compare relative performance, but it's like comparing the performance of Gold to McDonalds. Does not mean either are good of bad investments per se, but they are definitely not both metals, nor are they both fast food restautrants.
obsidian:
--- Quote from: gib on October 10, 2025, 02:43:23 AM ---I think you are again (deliberately?) confusing concepts.
In my view, BNB really is akin to a company which has issued shares as an unregistered security. Maybe, in crypto-speak, a better term would be a "utility token". Either way, the point here is that it makes money, through trading revenues derived from the exchanges it operates, is used to pay transaction fees and access services within the Binance ecosystem etc. With Coinbase, you have listed shares trading on the stock market. With Binance, you have their token. In both cases, value accumulated to the share based on performance of the underlying business. Which is when assessing the value of either, you need to look at traditional financial metrics - revenue, growth, debt, profit, profit margin, etc. Coinbase could pay out, (or retain) any profit. With BNB, they simply retain the profit which is then reflected in the value of the token. As for "burning", this is akin to a reverse stock split or a buy-back. So, BNB can burn tokens. And Coinbase can buy back stock. Mathematically its the same concept. Which is why I explained, just because BNB trades as a "token" it makes no sense to treat it as Bitcoin. Of course you can compare relative performance, but it's like comparing the performance of Gold to McDonalds. Does not mean either are good of bad investments per se, but they are definitely not both metals, nor are they both fast food restautrants.
--- End quote ---
Sommi (dude is hilarious) talked about it. Here's the transcript:
Uh, so Binance -- BNB Flying
BNB has been flying, but not for the reasons that you think. So, this is the Binance B&B chart. Something that you should note, okay, why is BNB going up? Well, Binance have a moat. A moat. You know friends, the water around the bridge to kind of protect you against outsiders. Well, you see Binance, they collect fees. But when you're, for example, trading the link USDT pair, remember there are two sides. All right, there are two sides, link and USDT. So, Binance are collecting fees from both sides. So over time they collect link and USDT tether.
Binance's Token Vortex
So for every altcoin listed on Binance, they collect the supply of the token for themselves. All right, it's kind of like a little buy and burn vortex. What do they do with the tokens? Well, it's up to them. However, what they have most likely been doing recently is so they've accumulated this war chest and will most likely spend it in the bull market like what we see now. So right now there are a lot of onchain snapshots shared around crypto Twitter which suggests that Binance is actually dumping a lot of tokens and rotating them into Binance BNB token.
So they collect everyone's Ethereum. they can stake it. They collect fees in Bitcoin. So, Binance very strategic now that the bull market's coming. They probably want they want to, I guess, take on Soy Lana.
Black Hole
They could be even dumping soy. So, you can see what ends up happening is they become literally this black hole of the exchange collecting fees. Okay? And um this war chest, it's accumulated for years. Now, how much is in their war chest, I don't know, for every single coin, okay? Okay. But it's interesting to think the higher altcoins go on their exchange, the more activity there will be and the more of a black hole they get. So whatever unicorn happens on Binance, the exchanges are winning and they get to basically that becomes their asset and they can always dump you to support their own, right? So that that does create a powerful castle mode for BNB.
This is CZ with two of the Binance Astro girls. Binance hiring female ladies I guess to try to take on Soy Lana. So that's why I've been seeing this chart. It's great. It is great. BNB BTC ratio. It's nearest 2021 high.
gib:
All of this above you wrote about their business is correct.
By the way, I was once in a restaurant in Singapore with CZ a few tables away. He was in quite a focused conversation with the guy who became the new CEO. This was a few months before he went to jail. I wish I had gone to say hi now in some ways, but I didn't want to bother him at the time...
Also know guys who have been out on his boat. He seems like a nice guy by all accounts.
obsidian:
Damn, WTF happened. I went to bed, woke up and later checked the markets.
BTC crashed to $106k, ETH $3.6k, BNB $1k, SOL $171, XRP $1.76! WOW. Looks like they all recovered a little. This was a major flash crash.
Necrosis:
--- Quote from: obsidian on October 10, 2025, 03:35:12 PM ---Damn, WTF happened. I went to bed, woke up and later checked the markets.
BTC crashed to $106k, ETH $3.6k, BNB $1k, SOL $171, XRP $1.76! WOW. Looks like they all recovered a little. This was a major flash crash.
--- End quote ---
Trump is fucking with the market again to make some money.
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