Why did Coin An destroy 370 million yuan of BNB in the first quarter, repeatedly reaching new highs?

Summary: Can the IEO of Coin An still serve as a driving force for the sustained rise in BNB prices?Text |Qin Xiaofeng Operations |Edited by Gai Yao|Mandy Wang MengdieProduction|Daily Planet (ID: o daily)On April 18th Beijing time, Coin An released the latest BNB destruction announcement and the eleventh BNB destruction.According to the announcement, in the first quarter of 2020, a total of 3373988BNB worth $52466000 was destroyed by Coin An

Summary: Can the IEO of Coin An still serve as a driving force for the sustained rise in BNB prices?

Text |Qin Xiaofeng Operations |Edited by Gai Yao|Mandy Wang Mengdie

Production|Daily Planet (ID: o daily)

On April 18th Beijing time, Coin An released the latest BNB destruction announcement and the eleventh BNB destruction.

According to the announcement, in the first quarter of 2020, a total of 3373988BNB worth $52466000 was destroyed by Coin An. The number of destroyed items increased by 52% compared to the previous quarter and 306% year-on-year.

The continuous growth of BNB destruction is the result of the continuous prosperity and expansion of the coin security ecosystem. Especially since last year, Coin An has made frequent efforts to acquire new businesses and lay out new tracks. In the long run, the ultimate direction can empower BNB.

In addition to its extensive ecological layout, IEO (initial trading and issuance) can still be the driving force behind the continuous rise in BNB prices.

In the current lack of hotspots in the encryption market, Coin Security has not stopped the pace of IEO. From the data, investors' enthusiasm for participation has not subsided. After the first IEO project WRX was launched in the beginning of the year, the highest yield was close to 1200%.

Although IEO is no longer as crazy as it was at its peak last year, as a regular business, the demand is clearly still there.

Data Analysis: Historical Maximum BNB Destruction Volume

Since the beginning of this year, the encryption market has encountered multiple crises. In the eyes of many people, the business of the exchange may not be as glorious as before.

But the destruction announcement of Coin An was somewhat unexpected. This is the largest destruction in Coin An's history, with both the quantity and total value destroyed.

(BNB Destruction Trend Chart)

According to statistics from the Daily Planet Daily, BNB began destruction in the third quarter of 2017 and reached its peak (point A) in the fourth quarter. It showed a decreasing trend in 2018 and continued to rise significantly quarterly since 2019, reaching a new peak (point B) in the first quarter of 2020.

But there is a significant difference in the causes of point A and point B.

A point is the performance of Coin's stepping on market trends. In the fourth quarter of 2017, Bitcoin climbed to a historical high (close to $20000), and the overall crypto market flourished, with a high enthusiasm for spot trading. At the same time, new projects are constantly emerging, and platforms that launch frontline projects tend to choose the most in-depth coin security.

Coin An also received market dividends, with BNB's destruction value increasing by 2600% compared to the third quarter of 2017.

When the bear market approached in 2018 and the enthusiasm for spot trading sharply decreased, the main focus was on the currency security of spot trading, and the business naturally encountered bottlenecks. The destruction of BNB showed a decreasing trend in 2018.

In 2019, in addition to a slight market recovery, the business layout of Coin An has gradually enriched, and BNB's scenarios have also continued to expand. From leading the trend of IEO to opening contract business, BNB's value has skyrocketed, and Coin An's revenue has also continued to rise. Since the fourth quarter of 2018, the value of BNB destruction has continued to rise, with a cumulative increase of up to 454% to date.

If the peak of BNB destruction at point A is the result of market prosperity achievements, the new peak at point B in 2020 is the return of rapid development of new business, selecting the right focus, and seizing the market by Coin An.

In the first quarter of 2020, the pandemic and crude oil price war hit the cryptocurrency market. Although the highest price of Bitcoin briefly rose by $10500, it suffered a sharp decline, reaching a bottom of $3800. Although it bottomed out and rebounded, the market panic sentiment has not completely eased.

Unlike in 2018, today's Coin An has gained more business support. Coin An has already erected multiple pillars for its Empire State Building, the most important of which is called the contract.

In the first quarter of this year, the crypto market experienced a short-term boom, and the main trading force was also concentrated in contracts and leverage, hence it is also known as the "leverage bull".

Smelling the market atmosphere, Coin An has started to focus on deepening contract trading and continuously launching new contracts at a rate of one per week. Currently, there are 24 types of perpetual contracts, including popular currencies such as Link.

According to Coinsecko data, the 24-hour trading volume of Coin On Futures is close to $2.5 billion, ranking first in the derivatives exchange. As an exchange that later laid out contracts, the speed of Coin An can reflect its strength.

The highest daily trading volume of the Coin An contract has exceeded 8.9 billion US dollars, and both the overall trading volume and BTC perpetual contract trading volume have fully surpassed BitMex, becoming the largest perpetual contract exchange in the entire market, "said Coin An.

Coin An seized the market opportunity and created the largest destruction in Coin An's history: 3373988BNB (valued at $52466000), with a 52% increase in destruction quantity compared to the previous quarter and a 306% increase compared to the same period last year.

Advancing business layout, fully empowering BNB

In addition to contract transactions, Coin An has also successively launched many new businesses, continuously expanding the value of the BNB ecosystem and empowering BNB.

These new businesses can be basically divided into two categories.

Firstly, deepen and expand vertical business, mainly C2C and options.

In the fourth quarter of last year, Coin On had already launched the C2C platform and finally had its own cash channel. This year, Coin Security further deepened this field. In January, the C2C business under Coin An announced the launch of a global merchant recruitment plan; In February, users can use Coin Security C2C to deposit money from the computer end to the APP end.

The channel for legal coins to be deposited into gold has been opened, which not only retains existing users for Coin An, but also brings new traffic to Coin An globally.

In addition, on April 13th, Coin On also launched a new business, spot option trading, with option exercise periods ranging from 10 minutes to 1 day.

What is the market outlook for option trading? If we use the traditional market as a reference, the trading volume of options in the traditional market is more than 10 times that of underlying assets. From this point of view, there is still a lot of room for growth in the trading volume of cryptocurrency options, "Liu Xiaotong, the head of the Deribit China region of the cryptocurrency options exchange, told the Daily Planet Daily

The Daily Planet also wrote an article analyzing that options will become another new track in the exchange industry in 2020, and it seems that the prediction has come true. Bakkt, CME (Chicago Mercantile Exchange), LedgerX, and OKEx have successively launched option trading, and Hot Coin is also interested in entering the market.

In the current era of intense homogenization competition, the earlier you enter the market, undoubtedly you will have an advantage. Coin An's launch of option trading at this time is also a part of the question.

At first, we will focus on the BTC option product, concentrating all resources for development and operation. After the BTC option product successfully enters the market, we will launch more option products, "said Aaron Gong, Vice President of Coin An Contracts.

Secondly, develop horizontal businesses, represented by "Coin Cloud", mining pools, and the acquisition of CMC.

In February of this year, Coin On launched the "Open Platform" plan, with a highlight being "Coin On Cloud".

Simply put, Coin Cloud provides technical support to help users quickly open their own exchanges and provide services such as OTC legal currency trading, spot trading, and futures trading. The first Binance Cloud project, Binance KR, was also launched in April this year.

Moreover, the top management of Coin Security have high expectations for Coin Security Cloud. I hope that within five years, BinanceCloud Exchange will surpass Binance.com and contribute the majority of trading volume, "said Zhao Changpeng (CZ), founder of Coin An.

On April 1st of this year, Zhao Changpeng (CZ) announced that the Coin An Mining Pool was about to be launched. The exchange mining pool, also predicted by the Daily Planet Daily, is the main battlefield of another exchange, with both Fire Coin and OKEx already deployed.

From the current preparation situation, the probability of the Coin An mining pool is mainly based on POS. Of course, the Coin An mining pool is not limited to mining, and Coin An hopes to use this to promote Coin An Finance, providing miners with one-stop services such as coin storage and wealth management, coin trading, OTC trading, and mortgage lending. With the advancement of the Coin An mining pool, BNB is highly likely to have strong synergy with the mining pool, such as holding BNB air drops.

Furthermore, Coin An also acquired CoinMarketCap (CMC), the world's largest encrypted data website, in April. This acquisition can not only expand the globalization process of Coin An, but also reach more new incremental users.

We usually reinvest nearly a quarter of the annual earnings, "said Zhao Changpeng (CZ)." What Coin An is currently seeking is not only limited to trading, but also expanding its business portfolio

In fact, whether it is horizontal or vertical business, the ultimate goal is to expand the revenue source of Coin An, empower BNB, and change the situation where platform currency is deeply bound to exchange trading business.

It should be said that all businesses of Coin An, whether they are BinanceUS, contracts, or our investment returns, will actually generate profits that will be incorporated into the overall ecological planning of Coin An and used to destroy BNB, "Coin An co founder He Yi told Daily Planet.

Compared to the destruction of some platform coins, relying solely on transaction fees, the destruction power of Coin An is undoubtedly the most abundant. The profits and value of BNB destroyed this time come from the joint creation of Coin An spot trading, contract trading, leveraged trading platform, and other BNB related departments, products, and partners

Continuous IEO, BNB's on-demand scenario

The direction of continuous efforts on Coin Security is to make BNB the fundamental token of the entire Coin Security ecosystem, rather than just the platform currency of the exchange. The Coin An ecosystem has just started, so BNB is a value investment that can be seen as promising in the long term.

In the short term, IEO remains an important driver and guarantee of BNB prices.

In 2019, Coin An launched IEO and the first project BTT10 times opened. Stimulated by the huge wealth effect, investors have been flocking to Coin Safe IEO, and BNB has also surged by over 550%.

Since then, the data of Coin An IEO has always been eye-catching. According to Cryptobank data, the highest historical return rate of all Coin An IEO projects ranks second, and the current return rate (99.7%) ranks first.

(IEO yield situation of various exchanges, from Cryptobank data)

However, in the past, small and medium-sized exchanges competed to imitate and join the competition, which also caused IEO to be "played down" by some platforms. The phenomenon of project quality being uneven and prices diving soon occurred from time to time.

Currently, there are only a few trading platforms that are still working on IEO and have good projects to publish, with Coin An being one of them. This year, half of the hotspots have been consumed, and the encryption market lacks new growth momentum. Coin security's IEO has once again attracted attention.

The first phase of the IEO project in the new year of Coin An is WRX in India, with a maximum yield of nearly 1200%. Even now, it still maintains a yield of 700%. That's why investors are paying more attention to the new phase of the project Cartesi.

Stimulated by the IEO, BNB also led the way in January, growing by 33.1%. When the second phase of the IEO project was recently announced, BNB also rose by over 10% on the same day.

If Coin An can continue to choose high-quality projects for IEO, it is not impossible for BNB to return to historical highs this year.

In an interview with Odaily Planet Daily at the beginning of the year, Zhao Changpeng also gave a positive answer: "IEO is actually a necessity, and I think Coin An should not stop IEO. When there are few projects, we will slow down

summary

The largest BNB destruction in history marked a perfect end to the first quarter of Coin An, but this is not the end. The future of BNB carries the expectations of too many investors, and the ship of Coin An must never stop sailing.

Everyone thinks that the ICO of Coin An is fundraising, but in fact, what you raise is debt, and your debt may be a lifetime debt. "He Yi said," Even though BNB has risen more than a hundred times now, your responsibility is actually heavy