Bankera Valuation — Speculations on Future Returns from the BNK Token

Published in

Zehnder Advisory

5 min readJan 13, 2018

Disclaimer: This article is for educational purposes only and does not provide financial or investment advice. The reader is aware that there are special risks involved in dealing with blockchain and cryptocurrency assets.
Additional Disclaimer: This valuation is based on assumptions made by the author and does not represent any promise for future returns.

Introduction to the Valuation

Bankera is building a Bank the „BANKING FOR THE BLOCKCHAIN ERA“. They are currently holding their ICO — already the largest ever by number of participants surpassing 50'000 contributors as of January 11. I get asked what the value of the BNK token might be in the future. The more important question in my view is what the revenue payed to the token holders is. The token value itself will be heavily influenced by the returns from the “Net Transaction Revenue”-share (NTRS) payed out to the token holders. The NTRS paid out to investors (a kind of dividend) provides an intrinsic value besides the token value itself.

Bankera sparked interest on a wide basis. From individual investors to large and reputable media outlets. I try to answer the question about future NTRS in the article below.

If you are new to the Bankera project, and you want to get a summary on the project first, read my article here.

Summary of NTRS and Bankera

The total of the „net transaction revenue“-share (NTRS) consists of 20% of all fees from transactions generated within the Bankera ecosystem (including Spectrocoin) consisting of traditional banking as well as crypto specific services.

Traditional banking activities of Bankera involve:

Payments, IBAN accounts, debit cards, payment processing.
Goal to become a regulated European bank.
Web service with 24/7 support and 20+ languages.
Investment products offered by Bankera.
Loans and deposits.

Extras for the crypto economy are:

Storage, exchange and p2p sending of cryptocurrencies.
A crypto exchange featuring the first ever platform for NEM mosaics to be exchanged.

Assumptions made for the speculations:

The base for calculating pre-ICO rewards was based on the statistics on the Bankera blog.
The base for calculating post ICO rewards were calculated from the above stipulations.
The market values for the tokens/mosaics themselves were ignored. These prices most probably will be linked to the rewards delivered by them. In case of over- or underperformance they move accordingly.
The revenue was calculated based on the numbers and graphs from the whitepaper.
BNK tokens are sold and not distributed pro rata.
The ETH price used for the calculations is €1,048.85.
All calculations are based on a balance of 100'000 BNK.

Future NTRS Speculations

I calculated averages based on the numbers released in the Bankera Blog.

Data from the Bankera Blog used for the following calculations

First I checked the data by comparing my NTRS received and the pre-ICO NTRS according to the data provided by Bankera. I found the data valid.

The next table shows the same calculation for the 7.5b BNK sold in the ICO.

From now on I had to make speculative assumptions to calculate further growth. I based my assumptions on the data in the Bankera whitepaper. The following graph shows Bankeras own projected future total revenue.

From there I now speculate upon future NTRS for 10bn and 25bn BNK total issued.

Speculation on returns for 10bn issued

Speculation on returns for 25bn BNK issued

Summary

To summarize the above I want to pick out two cases as an example.

If you own 100’000 BNK token, the returns projected by Bankera (for 2020) will return you as much as €10,400.00 yearly in case of 10bn BNK sold or €4,160.00 in case all 25bn BNK get distributed.

If you own 20’000 BNK token, the returns projected by Bankera (for 2020) will return you as much as €2,080.00 yearly in case of 10bn BNK sold or €832.00 in case all 25bn BNK get distributed.

It is important to notice, that the amount for the NTRS was calculated based on the average of all NTRS payed out so far. This will change (positive or negative) in the future. Also it is impossible to predict how many tokens will be sold and how many will be distributed pro rata.

The important lesson is: if you trust Bankeras business case and model, and realize this is a long term investment, you can probably benefit from very good returns in the future.