Kevin O’Leary, former paid ambassador of FTX, claims BNB, the native token of Binance ecosystem and FTT of FTX are worthless. In an interview on Yahoo Finance, Kevin explained that BNB was not worth the value attached to it. He said, “the only reason to own BNB is to get a discount on trading fees”, the media personality said.
He further added that the intrinsic value of BNB is zero as holders don’t own any part of the company’s equity by holding BNB. “It doesn’t give you access to the equity of the company,” he noted and when it comes to the top holders of BNB, Kevin alleged that 97% of BNB is owned by two wallets.
The crypto investor expressed his fears stating that no one knows who owns the wallet and no one can tell if Binance can pay cash to one of the owners of the wallets in an event of trying to liquidate the wallet.
Kevin said that the use of guardrails and the heavy hand of regulation such as the recent ban on staking by the US is needed to preserve the industry and investors’ money. Otherwise, he added that several more projects will keep being exposed and collapse over and over again.
The BNB ecosystem
BNB (Build and Build) was launched in July 2017 by Binance as its native token but on the Ethereum blockchain. In 2019 and 2020, Binance Chain and Binance Smart Chain were launched respectively, leading to the migration of BNB from Ethereum to Binance Smart Chain in 2020.
By the end of 2022, Binance Chain and Binance Smart Chain had become BNB Chain with thousands of crypto projects built on it ranging from DeFi to GameFi, SocialFi projects and more. In 2022, BNB Chain surpassed Ethereum as the chain with the most unique addresses – 260 million.
BNB has sustained a market capitalization that is above $32 billion in the last twelve months. Due to the number of projects building on BNB Chain, top global firms such as Google Cloud, AWS, and Opera Crypto. BNB has maintained an average TVL of about $9 billion over the last year. TVL is the total value locked in a chain per time. It is one of the indices used to detect the health of a blockchain.
BNB is the native token of the BNB Chain ecosystem that allows users on Binance exchange access to discounted trading fees. Users can also pay for goods and services using BNB on Binance pay and other connected platforms. BNB can also be staked by holders to receive interest on their assets.
Considering the use case of BNB across the Binance ecosystem, one is left to wonder if Kevin O’Leary’s position on BNB is objective considering his previous comments on Binance since the collapse of FTX. What do you think?
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