Quantum entanglement between Coinbase listing VS Binance BNB and its impact on the encrypted digital currency market

      

Recently, American real estate giant Caruso accepts Bitcoin as rent, and has invested 1% of the company’s treasury assets in Bitcoin. More and more large companies accept Bitcoin payment, store Bitcoin, and profit from Bitcoin. What does it mean? It means that Bitcoin is being recognized at an accelerated rate, and large companies are being forced to accept Bitcoin.

Today's point of view

Long-term rating: Overweight

Short Cycle Rating:

Bitcoin accumulation

Accumulation of small-cap cryptocurrencies 

Today's point of view

Yesterday, Bitcoin announced that it failed to break through the $60,000 mark, and it pulled back 3.59% to a minimum of $55,450. Affected, the overall market has a large correction, the altcoin index fell by 8.4%, and the decentralized finance index fell by 8.36%.

We remind investors not to worry too much, Bitcoin is still in an upward trend. We can see in the picture that Bitcoin had a downward trend breakthrough on March 29, and has been trying to stand above $60,000 since the breakthrough. After failing to challenge the $60,000 mark, the price returned to the intersection of the support line below the ascending channel and the broken down support line, and gained support at the current point.

We believe that Bitcoin has a high probability of protecting this point, forming a breakthrough confirmation, and hitting a new high in the near future.

It can be seen that the decline of the decentralized finance index yesterday gave the best confirmation buying point after the breakthrough, and then the index stood above the wedge and rebounded, which is a better opportunity for layout.

In the recent market, we have deployed 1INCH, YFI, SNX and other cryptocurrencies that are expected to outperform Ethereum in the future, and have reaped good returns. Congratulations to all investors who seized the callback opportunity to make macro adjustments.

In April, blockchain companies will shock traditional investors for the first time. COINBASE will be officially listed on the NASDAQ exchange on April 14, with a valuation of approximately US$68 billion.

From the above figure, we can see that the expected revenue of COINBASE in 2021 is 7.2 billion US dollars, exceeding the mainstream stock and futures exchanges in the United States including CBOE, CME Nasdaq and ICE Group. Compared with Bitcoin ETFs such as Bitcoin Mining Machine Company or MICROSTRATEGY, COINBASE will be the first time for investors to evaluate a blockchain company with the logic of traditional finance.

As one of several major exchanges, the annual income of COINBASE is expected to beat most traditional stock exchanges. This will be an important milestone for the blockchain to surprise Wall Street investors and attract more attention.

Compared with the COINBASE model that does not issue platform tokens but allows its own equity to be traded on traditional equity exchanges, Binance’s model of issuing platform tokens without seeking listing is another important idea of ​​the exchange.

In contrast, the attitude of Huobi and OKEX to issue coins on the one hand and seek listing on the other hand does not seem to have won the favor of the market.

Binance Coin was affected by the news that Coinbase was listed on NASDAQ. The market value of its BNB yesterday reached about 63 billion US dollars. It can be seen that investors in the currency circle have already taken the listing valuation of COINBASE as the basis for the valuation of BNB.

We remind investors to pay attention to the future trend of the market value of BNB and COINBASE. The valuation of COINBASE and the valuation of Binance may form the first quantum entanglement effect between the traditional financial model and the blockchain model in the history of the industry—that is, when COINBASE When the price rises, BNB will also rise; when the price of BNB falls, COINBASE will also be affected.

This is an important sandbox experiment for investors and regulators, and it will also be an important battlefield for the collision and integration of traditional finance and blockchain finance.