|Utility type||Trading fee discount|
Blockchain Board of Derivatives (BBOD) is a semi-decentralized cryptocurrency futures trading platform that provides a real-time, ultra-fast matching engine in conjunction with decentralised, secure blockchain based settlement.
BBOD accepts deposits in the stable coin TrueUSD (TUSD) and offers futures trading on 16 cryptocurrencies against TUSD, enabling one to make profits from both rising and falling cryptocurrency prices.
BBOD’s hybrid architecture offers the user experience of a centralised trading platform whilst providing the security and privacy of a decentralised exchange.
The exchange boasts a matching engine that can perform 1.25mln messages/sec and is known for its high capacity and low latency.
Behind the platform is a professional team of 35+ employees residing in Cambridge, Barcelona, Seoul, São Paulo, Manilla, Ho Chi Minh City and Mumbai.
BBOD is primarily an altcoin margin trading focused exchange, differentiating itself from Bitmex, Deribit, Huobi DM, and Okex. The platform aims to average $100m trading volume per day by the end of 2019.
BBOD looks forward to launching the beta version in Q2/2019.
BBD is an ERC-20 token issued on the Ethereum blockchain.
The BBD contract address is: 0xb79fc5505ea4f3b920ee7e3349de064226692717
Total Supply: 117,382,569 BBD
Max. Supply: 275,803,582 BBD
Please note that, Max. Supply is higher than Total Supply because BBOD performed a ‘token migration’ in 2018. BBD token-holders migrated the tokens from the old contract address to the current contact address. As a result, BBD token-holders received additional BBD tokens. The split ratio was 100-for-1.
The old contract address: 0x5ca71ea65acb6293e71e62c41b720698b0aa611c
*Definition of Total and Max. Supply: https://coinmarketcap.com/faq/
BBD is the native utility token that functions within the BBOD ecosystem and has several core use cases, including:
A user who has a sufficient amount of BBD tokens will receive a ‘BBD discount’ of up to 10% for taker fees based on their current BBD balance. (Table 1)
Table 1. BBD holdings discount
A user who has a sufficient amount of BBD tokens will receive a ‘Volume discount’ of up to 8% for taker fees based on their traded volume generated during the last 30 days. (Table 2)
Table 2. Volume discount
A user may combine both discounts receiving up to an 18% discount for taker fees in total. E.g. A user is able to receive 8% + 4% = 12% discount if he/she has a current BBD balance of 2,501 BBD and has generated traded volume of 9,000,001 TUSD during the last 30 days.
BBOD plans to organise weekly ‘BBOD Lottery’ events with attractive rewards. The initial requirements to enter the lottery will be possessing a sufficient BBD token balance and trading volume. The higher BBD holdings and the more trading volume, the more lottery tickets the participant shall receive. BBOD aims to give away a substantial amount of BBD received from trading fees.
BBD token-holders distribution is highly concentrated. The top 5 holders collectively own 70.34% of the total supply.
Table 3. Top 5 BBD holders
BBOD is classified as a semi-decentralised cryptocurrency futures trading platform. Currently, there are a few other futures trading platforms on the market, however, all of them are fully centralised.
BBOD is the only leveraged trading platform that offers non-custodial accounts for traders.
We have identified four other projects that portray significant similarities to BBOD with regards to their trading products offering.
Table 4. Main competitors
|Number of data feeds for index calculations||4||5||9||4||N/A|
|Number of underlying assets||4||8||16||8||+100|
|Collateral for margin trading||Multiples||Multiples||TUSD||BTC||Multiples|
The world’s first margin trading platform that introduces non-custodial accounts. The platform does not hold either the clients’ digital assets or their private keys.
HIGH LEVERAGED ALT TRADING
There is no other place to trade such a large variety of smaller altcoins with up to 50x leverage. This allows one to utilise capital more efficiently.
All balances of the clients’ smart contract accounts are visible on the blockchain (e.g. via Etherscan.io website). In comparison, traders’ deposits at centralised exchanges are located in one or several large wallets controlled by the owners of the exchange.
PROOF OF SOLVENCY
Due to the full transparency of our clients’ funds, BBOD proves solvency (assets = liabilities) every day, once the daily settlement on the blockchain has been performed. It is not clear if our competitors have sufficient funds to satisfy all of their clients’ withdrawal requests.
ADVANCED INDICES DESIGN
Our robust, efficient and intelligently responsive algorithm combines data feeds from 9 spot exchanges. The component spot prices are dynamically weighted according to the current market conditions.
FAIR LIQUIDATION RULES
Any remaining funds from liquidation stay in a clients’ account. Some competitors take all the remaining equity after liquidation.
BBOD is very conservative in terms of announcing future project developments. However, BBOD aims to add three key features to the platform moving forward:
The most popular approaches to assessing the value of a token are the Discounted Cash Flow model (DCF) and Relative (multiple) Valuation model. Due to the lack of historical data related to the traded volume on BBOD, DCF is not an applicable model to assess the value of BBD tokens.
Thus, the Relative Valuation Approach using a dataset of comparable exchanges was adopted to derive a Market Value/Volume multiples (MV/Vol) for all selected exchanges to estimate a possible price range of the BBD token.
The MV/Vol ratio measures the dollar value of the traded volume relative to the total token market value (Market Value). This is a simple way to compare how the market prices one unit of traded volume across exchanges.
We sampled a set of 12 exchanges. The main factor was the Market Value of their tokens. We excluded some exchanges which may not report genuine trading volume.
First, we calculate the Average Daily Volume (Avg. Daily Volume) for each exchange as:
Avg. Daily Volume = 30-day Volume / 30
The MV/Vol ratio for each exchange is computed as follows:
MV/Vol = Market Value / Avg. Daily Volume
In order to compute the ratios, we selected comparable exchange tokens and collected the required data from https://coinmarketcap.com as of 10/02/2018.
Table 5. Overview of comparable exchange tokens
|Coin||Symbol||Price||Total Supply||Mkt Cap||Type|
After calculating the MV/Vol for each of the selected exchanges, we assigned weights to each exchange.
Weight = Market Value / Sum of Market Value for each exchange
Finally, we computed the Weighted Average Market Value/Volume multiple (WA MV/Vol). (Table 6)
WA MV/Vol = Sum of (Weight * MV/Vol) for each exchange
The valuation is highly sensitive to the weighting methodology. Due to the fact, that trading volume on many exchanges is often higher than in reality. Thus, we decided to assign the weights based on the Market Value of the tokens. We believe that the MV/Vol ratios of the tokens with the highest Market Value are more stable and more efficiently valued by market participants.
Interestingly, the decentralised exchanges offer higher multiples which may be a sign of a premium for proof-of-solvency and real volume calculation.
Table 6. MV/Vol Valuation
|Coin||Mkt Cap||30-day Volume||Avg. Daily Volume||MV/Vol||Weight|
Weighted Average Market Value/Avg.Volume multiple = 7.19
BBOD is planning to be launched in the coming weeks, thus we cannot assign an actual volume to the calculated multiple. The only way to assess the price of the BBD token is to present the hypothetical range of volume we can expect based on the average volume from similar exchanges.
We calculated the Avg. Daily Traded Volume of all relevant margin trading platforms. (Table 7)
Table 7. Main competitors and their Avg. Daily Notional Traded Volume
|Name||Avg. Daily Volume|
Predicted BBD Price = (WA MV/Vol * Avg. Daily Volume) / Total Supply
Table 8. Estimated BBD token valuation based on Avg. Daily Volume
|Avg. Daily Volume||Projected BBD Price||Total Supply||Market Value|
Thus, our estimation of 12-month EFV* for the BBOD tokens is in the range of $1.23 – $12.26 per BBD token depending on the traded volume. (Table 8)
*Estimated Fair Value
Please note, that the above valuation is based on the Total Supply of the BBD token. If Max. Supply is taken into consideration, our estimation of 12-month EFV for BBOD tokens should be multiplied by 0.426 (the ratio of Total Supply/Max. Supply) However, we cannot be certain that the remaining tokens are migrated (users might have lost their private keys or simply do not want to migrate their token in the near future).
We believe that due to the unique features of the platform, such as high-speed leveraged altcoin trading, stablecoin deposits and non-custodial client accounts, BBOD will start to capture a substantial share in the market segment of leveraged trading platforms
Overall, for the reasons listed below, BBOD Research affirms its view that:
Overall, based on our observations, the performance of leveraged trading platforms has been extraordinarily strong during the current bear market. The unprecedented drops in cryptocurrency prices that happened last year have created a unique environment for the potential of a dynamic bounce back. The favorable economic situation (the volatile crypto market) should create a strong demand for BBOD derivatives products in consequence stimulate demand for BBD tokens. New future product like other asset classes and vanilla options offering will, in our view, support the upcoming year’s valuation of the token.
We initiate a strong bullish stance towards the BBD tokens, Overweight, 12-month EFV in the range of $1.23 – $12.26 per BBD token depending on the traded volume.
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Disclaimer : BBOD Research is an independent cryptocurrency research-house. The company has not received any remuneration (cryptocurrency or otherwise) in preparing this analysis. This report has been prepared solely for informative purposes and should not be the basis for making investment decisions or be construed as a recommendation to engage in investment transactions or be taken to suggest an investment strategy in respect of any financial instruments or the issuers thereof. This report has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research under the Market Abuse Regulation (EU) No 596/2014. Reports issued by Trade the Future Holding (“BBOD Research”) or its affiliates are not related to the provision of advisory services regarding investment, tax, legal, financial, accounting, consulting or any other related services and are not recommendations to buy, sell, or hold an asset. The information contained in this report is based on sources considered to be reliable, but not guaranteed, to be accurate or complete. Any opinions or estimates expressed herein reflect a judgment made as of this date and are subject to change without notice. BBOD Research will not be liable whatsoever for any direct or consequential loss arising from the use of this publication/communication or its contents. Trade the Future Holding and its affiliates hold positions in digital assets and may now or in the future hold a position in the subject of this research.
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