The advances in FinTech are largely driven by increasing preferences for forming peer-to-peer connections. These connections are transforming how people interact, work, consume, and produce.

Blockchain-based utility tokens offer unique opportunities for the customers of digital company ecosystems, deriving their value from their collective usage on blockchain platforms.

Let’s analyze the dynamics of three utility “exchange tokens” (BNB, OKB, HB), and the utility token FLy, recently launched by proprietary HFT company VRM.

“Exchange coins” has shown a fantastic rise this year.

Cryptocurrencies are becoming a regular source of income, and more and more customers are coming into this area. As a result, this year the core native utility assets of centralized crypto exchanges or “exchange coins” BNB, OKB, HB, witnessed an unparalleled rally and set several records.

 

BNB/USD. Source: Trading View

Binance Coin (BNB), an exchange-based token created and issued by the cryptocurrency exchange BINANCE, increased almost +1600% or 16X times for the year to date: from $38 in January to a max price of $638 in April. It’s more than 13 times BTC’s growth this year (BTC/USD has grown 118% since the beginning of the year, with the latest peak at $65,000 price zone).

The Binance Exchange is the largest cryptocurrency exchange in the world (average trading volume is about $37 bln). BNB was the first token issued by the crypto exchange, and today it holds a leading position by its market cap when compared to similar assets.

BNB was launched through an initial coin offering in 2017, 11 days before the Binance cryptocurrency exchange went online. The fact that BNB was issued by the world’s top crypto exchange for daily trading volumes benefits its ranking.

The amount of client assets on the Binance balance sheet has been consistently growing since its foundation. You can see on the chart below how the balance of Binance is consistently growing, even when the market was falling in 2018–2019.

Bitcoin Balance on Exchanges — Binance

Source: Glassnode

 

On average 30–50% of the daily total of BTC transferred to all exchanges’ wallets is transferring to Binance wallets (look at the charts below).

All Exchanges Inflow (BTC)

Source: CryptoQuant

 

Note: Total BTC inflow to all exchanges on April, 28 was 38,5К.

 

Binance Inflow (BTC)

Source: CryptoQuant

 

Note: Total BTC inflow to Binance exchange on April, 8: 14,7К (38% of the total amount).

Binance Coin has seen massive growth in interest throughout the years and, in my opinion, this tendency will increase. Several rounds of BNB token burn events have also appreciated the BNB price and pushed it up to one of the top-3 cryptocurrencies by market capitalization.

BNB/USD Chart analysis

 

Source: Trading View

 

Key support/resistant levels for BNB/USD price:
Support 1: $540
Support 2: $520
Support 2: $466
Resistance 1: $598
Resistance 2: $625

The BNB/USD price is moving inside the triangle formation since the latest token’s burn on April 14, 2021. Technical analysis indicates that a formation like this is a bullish signal and if the price breaches the resistance level of $600, the next target will be at $720 per coin (about +30% of potential growth).

Let’s have a look at another coin — OKEX Coin (OKB), a utility token issued by the OK Blockchain Foundation. OKB/USD price has grown more than 162% for the year to date — from $9.4 per coin to almost $25 on April 12.

OKB/USD Chart analysis

Source: Trading View

 

During the last week, OKB/USD traded inside the range of $15.08–18.36 per coin. Today the price has smashed the $18 resistance level. As a long term up-trend is still relevant, after breaching the resistance level, the next target will be the previous high of $24 per coin (+20% of potential growth since the price at the moment of writing).

Key support/resistant levels for OKB/USD price:
Support 1: $18.35
Support 2: $15.05
Resistance 1: $20.30
Resistance 2: $23.90
Resistance 3: $32.50

The next token in our research is the Huobi Token (HT), the native token of the crypto services ecosystem Huobi Global. The price of HB did the same thing as the other exchange coins. Since Jan 1 2021, its value has more than quintupled, with the price reaching a maximum of almost $27 per coin in March.

HT/USD Chart analysis

 

Source: Trading View

 

The price of the HT coin was moving inside the triangle formation last week, the dynamic correlated strongly with BNB and OKB. This night the price has breached the resistance level of $21.64 and reached the first target at $24.30 per coin (+18% of growth).

Key support/resistant levels for HT/USD price:
Support 1: $18.86
Support 2: $17.23
Support 3: $16.03
Resistance 1: $24.30
Resistance 2: $27.50

The price of this utility token has a positive correlation with the BTC price. A bottom signature for the BTC pervades, the price is growing supported by long-term investors. Over-leveraged speculation has been flushed from the system, and the buyers have stepped in.

Looking Ahead
How to find the new token star? The key feature of a promising asset

In a surging altcoin market, some assets will always perform better than others. Ascertaining which ones will show good performance is where fundamental analysis comes into play. Projects with a strong chance of gaining user adoption and lasting in the long-term offer give the best chances of healthy returns.

As the utility token industry matured, new, innovative tokens with exciting value propositions have been created.

One of the prospective utility tokens launched recently is the Franklin (FLy) token, the ecosystem token of the VRM company, launched in the middle of April. The token was designed to provide customers with an opportunity of getting discounts and additional benefits from the VRM eco-system.

VRM is a proprietary HFT company founded in August 2018. The company focuses on trading AI-based quantitative HF strategies on the crypto market and provides MM solutions to digital asset exchanges. The VRM ecosystem includes VRM Research, VRM Capital Management, VRM Mining etc.

The FLy token currently is available for trading on Gate.io, BTSE, Uniswap and BitMart. VRM plans to continue the listing plan for FLy to enter a new exchange every week. Thus, FLy will be traded on 20+ venues by the end of the year.

One of VRM’s major business projects is Black Ocean, a liquidity-providing platform. Black Ocean aims to build a bridge between the traditional world of finance and crypto.

The idea of Black Ocean’s decentralized pool is to provide whales and institutional players from the DeFi sector of the crypto world the ability to manage big trades without any counterparty risks and market impact.

Black Ocean aims to cover custody, lending and legal currency channels for institutional and corporate users, and provides a series of services such as dark pools and liquidity pools. The platform is in the last phase of testing and will be launched in May.

The role of the FLy token is to provide token holders with opportunities for obtaining trading rebates, covering network expenses and gaining additional benefits for liquidity provision and funding.

FLY Price Live Data

Source: Gate.io

 

FLy token price is steady above the support level of $0.1625. The live Franklin price today is $0.197438 (rose more than X8 since the IEO). Token total supply is 1,700,000,000 FLy. With VRM’s burning plan (1,170,600 tokens have been burnt), the amount of FLy will eventually decrease, which will indirectly stimulate the growth of its value in the long term.

As the new VRM business products will launch soon and FLy will be listed in new crypto exchanges, it offers an interesting prospect for investors and customers.

All investment strategies and investments involve the risk of loss. 
Nothing contained in this article should be construed as investment 
advice. Any reference to an investment's past or potential 
performance is not, and should not be construed as a recommendation 
or as a guarantee of any specific outcome or profit.