Most exchange tokens are undervalued, claims a report by crypto analytics firm TokenInsight.
Exchange tokens are those minted by cryptocurrency exchanges. Often, those holding them are eligible for various benefits on the exchange, such as lower transaction fees.
Most famous is BNB, formerly known as Binance Coin, the eponymous coin of the giant crypto exchange. At $2.6 billion, BNB is the seventh-largest cryptocurrency by market cap, according to data from CoinMarketCap, the coin metrics site (that was recently acquired by Binance).
At its current value, $17.34, Binance is one of the only success stories for exchange tokens. Other exchange tokens, among them Huobi Token, LEO Token, KuCoin Shares, OKEx, are worth far less and have much smaller market caps.
But TokenInsight claims that most of these tokens are undervalued. Using a variety of metrics, the firm created a model that calculated the “fair price” of these exchange tokens.
Binance Coin should be worth around $21.28, said TokenInsight, since Binance has increased its hold on the derivatives industry and extended its reach into mainland China.
Huobi Token, currently worth $4.43, should be worth around $6.28, said TokenInsight, since it “enjoys unusual access to China’s central bank and government official[s].”
TokenInsight also predicted that OKEx’s token, OKB, worth $4.99 at the time of the study—they crunched the numbers a little over a week ago—should be worth between $5.39 and $5.95. It is currently worth $5.49.
“This has a huge relationship with the general recovery since the Black Thursday crash,” wrote Johnson Xu, chief analyst