Binance’s market cap is at $64 billion, but the intrinsic value of its token is nothing, as it only offers discounts on trading fees and not access to the company’s equity. Only two wallets hold 97% of all Binance tokens, and if one of them decides to sell, the company may not have enough cash to buy them back. This situation highlights the need for regulation, as unchecked cryptocurrency speculation can lead to multiple blow-ups. Senators on committees are pushing for stricter regulation in the long term.
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Binance’s B Token Market Cap
Binance’s B token currently has a market cap of 64 billion dollars. However, the only reason to own this token on Binance is to receive a discount on trading fees. What is the intrinsic value of this token? The answer is nothing, as it doesn’t give you access to the equity of the company.
The Ownership of Binance Tokens
Looking at the wallets of Binance’s B token, only two wallets have 97% of all the tokens. It raises the question, who owns those wallets? And what if one of them decides to sell their tokens for cash? Does Binance have 34 billion USD of cash to buy those tokens back? Most likely not.
The Future of Regulations
These types of situations will keep occurring, and it’s causing Senators to question where the regulations are. They are now saying on these committees that they are done with it and want to put the heavy hand of Regulation down. Long term, this is probably a good thing.
