BNB should be a big winner this year

BNB is the exchange token of binance crypto exchange.

BNB is great token to leverage on people's interest in crypto currency. The coin has a special feature that makes it looks like an equity investment: each quarter, the company will spend 20% of its net profit to buy back BNB coins, until they have purchased 100MM BNB coins from the market.

The company has so far bought back BNB coins twice since they started the exchange business. The 1st time they spent 1.6MM USD, the second time they spent 40MM USD. Just to show you how quickly their profit is skyrocketing.

As of today, there are 197,192,383 BNB coins created (maximum), with a marketCap of 1336.273MM (bnb price at $13.72). The company spent 40MM this quarter to buy back BNB coins. Assuming they will have a reasonable growth, they should be able to do 80MM buyback each quarter from now on (1.6 to 40MM, almost 0 to 40MM, and assume 40MM is the sum of the average of last quarter's daily profit number, end of quarter rate should be close to 80mm).

MktCap 1336MM/80/4 = 4.175, so this business is selling for P/E ratio of 4.175, or after 4.175 years, the profit should be able to buy back all BNB coins.

So if you want toget exposure to crypto space, but worrying about Bitcoin, Ethereum prices being too high, BNB is a relatively safe bet. I conservatively estimate BNB could triple this year to at least $40.

For reference, coinbase, a crypto exchange in US, not as big as Binance and only offering just 4 coins (btc, eth, bch, ltc), is already making $2.74MM a day in 2017, and the number is still climbing.