Unravel BitCoke Token, the Best Platform Token for Value Investors?
BitCoke is a crypto exchange registered in Cayman Islands. It launched in 2019 and has operation offices at Hong Kong, and Australia and several other sites. The platform, though not a household name, has some unique and interesting features, including its original Quanto swap, and professional charts and functionalities. At the time of writing, BitCoke ranks 7th in CoinMarketCap derivative market place in terms of volume.
At the beginning of 2022, BitCoke decided to launch its native token COKE to connect with its users and nuture the exchange ecosystem. Like most exchanges that has already launched their platform token, BitCoke has gradually adopted empowerment cases & usage for COKE as a way of enrolling and retaining users.
In this article, I’m dissecting the COKE tokenomics and use case to give my followers a comprehensive and objective assessment on COKE fundamentals. Also, I’ll explain why COKE is an unpolished gem in the field of platform token, worth consideration from value investors.
At release, the maximum supply of COKE tokens will be 1 billion, with an initial circulation of around 23 million. The initial COKE airdrop took place on November 10th and November 15th 2021, with tokens airdropped to users. Coke coins are split across the various spheres of BitCoke ecosystem, and the distribution is listed below:
CokeDex — 49%
CokeDao — 21%
The Team — 20%
Public IEO — 2%
Private Offering — 8%
The COKE token is issued as an ERC-20 token, with the purpose to incentivize trading and reward market-makers for its future project, i.e. CokeDex and CokeDao, establishing a community and organically boosting the price of the native token in the long term.
The 1 billion total supply looks elevated for a medium-size exchange on the surface. The real circulating supply actually will remain at very low level for the first 5 years.
According to the official releasing schedule on the whitepaper, most tokens are allocated to either the team or the affiliated project & Dao treasury. The selling supply is from institutional investors who got tokens at private rounds. Starting June 2022, the 80 million private round tokens will begin unlocking at linear pace. However, that will not make a significant impact on the COKE price as the unlocking periods last 5 years with around 1.34 million monthly supply.
COKE whitepaper outlies a variety of utilities and application for COKE token and we are seeing BitCoke is working on these use cases. In March 2022, BitCoke launched its exclusive launchpad platform for new project funding. Users need to buy COKE so as to subscribe to new project tokens. The launchpad follows the successful example of Binance Launchpad, and create huge demands for platfrom token prior to new project IEO, as is the case with BNB.
One month after launchpad debut, BitCoke rolled out COKE fix-income products where holders are able to deposit the tokens and earn steady but risk-free interests. With up to 22% APY for 365d deposit, this quite enticing yield will surely lock a significant amount of COKE and reduce circulation in the market.
Furthermore, BitCoke team has reassure the community that they are fully committed to implementing all COKE adoption options listed in the whitepaper. In the coming months, COKE holders will get fee discounts, voting for new listing, as well as staking through CokeDao nodes.
Over the past few years, most centralized exchanges tokens, BNB, FTT, OKB, KCS notably, has gained price appreciation largely due to fees buyback. It’s a direct yet powerful method to provide buying power to the circulating tokens. BitCoke also put forward a very radical buyback scheme that every quarter the exchange will use 33% of trading fees to buy back and burn the COKE in the market. This measure will effectively support COKE price and reduce circulation.
Exchange Growth Outlook
As described above, BitCoke has introduced a number of measures to support the COKE price. However, in the long run the deciding factor for fate of an exchange token is its user growth and ecosystem development.
Being the first Quanto swap exchange in crypto space, its functions and features are tailored for professional traders and institutions. Due to its flexibility and saving cost, Quanto swap has garnered much popularity among professional traders and retailer investors as it enables BTC/ETH/USDT as margin to leverage all available perpetual contracts. BitCoke offers custom chart, drawing tool and user-friendly trading functionalities and interface.
On top of excellent products and features, COKE whitepaper recognized the importance of marketing and collaboration with community. Through COKE private offering, BitCoke claimed that it established relations with marketing agencies, media, social media KOL, for future expansion. With the help of these resources and connection, BitCoke is set to expand to new markets like Southeast Asia, Japan, South Korea, and become a dominant exchange in these areas.
At the moment of writing this analysis piece, COKE is at $0.9, representing 900M USD full-diluted market cap. While considering there are only 26M token circulating in the market, the actual market cap is only 25M USD.
Given that the exchange is enforcing a set of highly incentive adoption for COKE and expanding COKE usage. I would say the fairly valuation of COKE is at least 3B USD, 3 times the current market cap.
As the exchange growth accelerate, with continuous buyback from exchange fees, the circulation supply of COKE, by and large, would become deflationary soon and boost the price organically. I would say in a time horizon of 3–5 years; COKE price will probably soar to $10 level.
- COKE whitepaper: https://www.bitcoke.com/token
- BitCoke website: https://www.bitcoke.com/
- BitCoke Twitter: https://twitter.com/BitCokedotcom
- BitCoke TG Community: https://t.co/yCcToWDQl9