MXC Exchange Partners with Heco, How Does the Value of MX Look Like in the Future?
Recently, MXC Exchange and Huobi ECO Chain (Heco) reached in-depth cooperation to expand the application scenarios of its exchange token MX. The scope of cooperation includes:
1. MX will be connected to Heco as a cross-chain asset and will open up scenarios such as loaning, liquidity mining and DEX trading.
2. Huobi Global and MXC Exchange exchange will add MX and Heco deposit and withdrawal entrances to optimize the user experience.
3. MXC Exchange will launch a Heco Asset Zone specifically to jointly create diversified ecological application scenarios.
At the same time, the tokens top exchange had a second pump. According to the data of CoinMarketCap on May 20, the highest price of BNB was $339.49, HT reached $26.73, and MX hit $1.12, among which the historical gain of MX reached 1017.18%. .
So is MX on the eve of skyrocketing?
1
We can take the valuation of Coinbase as an example for horizontal comparison.
Coindesk reported on February 17 that according to Coinbase’s private equity transactions in the secondary market, its valuation is $77 billion. Two people familiar with the auction said that “these stocks” are changing hands on the Nasdaq private market at a price of $303 per share. This means that the total value of the company is approximately $77 billion, which is higher than Intercontinental Exchange, the owner of the New York Stock Exchange.
Previously, well-known institutions Messari estimated a minimum valuation of $28 billion, Polychain Capital CEO Olaf Carlson-Wee claimed a valuation of more than $100 billion and other similar institutions gave valuations of $50 billion and $75 billion respectively.
Different institutions have carried out different valuations on Coinbase, with a difference of 357%. This gap comes from the different perceptions of these institutions on emerging markets.
Active Research Knowledge managed by Katherine Wood, whose five actively managed ETFs, including technological innovation, independent technology and robots, the new generation of the Internet, financial technology, and genetic reform, have achieved an average annualized return of 170% in the past year.
According to FTChinese.com, Buffett’s Berkshire Hathaway’s Class A shares grew 2.4% and Class B shares rose 1% last year. The return on the S&P 500 Index was 18%, while the Nasdaq The index growth rate is 43.6%, which is the second consecutive year that Buffett underperformed the S&P 500.
At the same time, the Tesla stock held by Ark Investment has doubled by 7 times in 2020. Before the pump, Dalio-led Bridgewater Fund just sold all their Tesla’s stock.
Although world celebrities such as Buffett and Dalio have changed their views on Bitcoin, they still lack imagination for these emerging markets.
In August 2018, Elon Musk wanted to privatize Tesla for $42 billion, while Katherine Wood believed that privatization was a mistake and Tesla’s stock price would reach $4,000 in five years.
Active Research Knowledge pointed out in the latest report “The Great Idea” that Bitcoin’s rise to a record high is the result of more trust in cryptocurrency and less hype. More and more companies are adopting Bitcoin as their treasury. If the trend of institutions and companies adopting cryptocurrency continues, every S&P 500 company invests 1% of its assets in Bitcoin, and its price will rise by $4 10,000. And the institutional asset allocation of 2.5% to 6.5% may affect the price of Bitcoin from $200,000 to $500,000.
Compared with Coinbase, the current daily trading volume is $4.596 billion. As the Biden government continues to promote the $1.9 trillion fiscal stimulus, more and more institutions and individuals have begun to allocate crypto assets, and the valuation of cryptocurrency trading platforms may go far beyond that.
2
Coinbase itself does not have an exchange token, but other mainstream exchanges such as Binance, Huobi, and MXC Exchange have their tokens, so the value of these tokens can reflect the market value of the platform itself.
However, it is worth noting that the exchange token has always been positioned as a utility token rather than a security asset. Their market valuation is not high. Especially MX, whose current market value is only $120 million. Compared with BNB with a market value of $45.266 billion and HT with a market value of $4.383 billion, it still has a long way to go.
Some people in the industry have posted that the current valuation of exchange tokens is generally around 10 times PE. Binance’s full-year profit in 2020 was around $800 million to $1 billion. According to the traditional valuation of 10 times PE, its market cap should be in the range of $8 billion to $10 billion. At present, the market value of BNB has reached 45 times the PE level.
According to the MXC Exchange, a total of about 7,189,900 MX was burnt in 2020. Estimated based on the median monthly MX price, the trading fee earned by the platform is about 9,423,400 US dollars.
The current market value of MX is only 12 times the PE level, and if calculated according to the annual average price of MX in 2020, the PE level is much lower than this estimated value, because the price increase of MX has reached 858.33% since the beginning of 2021.
Therefore, the market value of the MX is far underestimated. Compared with the exchange token of other mainstream trading platforms, it is still on the eve of the return of value. Why is that?
First of all, MX has deflation scenarios in the platform including spot, contract, ETF, leverage and buyback and burn. It has practical application scenarios in DeFi mining, SpaceM, M-Day, and vote to list.
Throughout 2020, MXC Exchange had the earliest layout in DeFi, Polkadot, NFTs, Layer2, etc. There were nearly 100 tokens and coins listed on MXC Exchange, and the high gains had attracted huge user traffic, the trading fees earned from this traffic have accelerated the process to burn MX.
Recently, the application scenarios of MX have begun to expand from within the platform to outside the platform. The number of transactions on the Heco reached 42.036 million, and the number of funds on the chain reached $2.819 billion. By cooperating with the Heco, MX can be used as a cross-chain asset to connect to the Heco, which will open up scenarios such as loaning, liquidity mining and DEX trading. At the same time, the Heco projects being listed on MXC Exchange will also bring value to MX.
It is understood that MXC Exchange may also cooperate with the public chains built by other top trading platforms to implement the implementation of MX entire network transaction application scenarios. On February 11, MXC Exchangelaunched the MX developer “MOASIS” program and established a $5 million eco fund to open up the use of MX in various public chains and applications. All asset developers who wish to expand the MX scene can sign up for it.
