Chainlink Coin, Arbitrum, and Binance Continue to Stay Long-Term

K33’s VP of Research argues that altcoins Chainlink (LINK), Arbitrum (ARB), and Binance Coin (BNB) were excluded from K33’s Vinter Quality Index because they offer the potential to capture uncertain value.

According to Anders Helseth, the May-July Vinter Quality Index excluded LINK, ARB, and BNB tokens due to questionable tokens after FTX.

The Venter Quality Index criticizes the value proposition of alternative currencies

The K33 quality filter selects coins in the top 10 cryptocurrencies by market capitalization to include in their quality index. BNB, ARB, and LINK are set aside before the quality filter.

Binance’s BNB did not make the grade because its price is based on the central exchange’s promise to buy back and burn the token. The report argues that the recent collapse of FTX means that the token needs to be backed by more than just a centralized entity word.

Binance burns BNB quarterly through an automatic burn mechanism which recently saw 2.2 million BNB withdrawn from circulation.

The research firm said Arbitrum’s use of ETH for transaction fees and ARB’s lack of a clear governance tool confuse the value capture proposition. The token was created to withdraw trading company Arbitrum subsidiary Offchain Labs from central governance by forming a DAO from ARB holders.

K33 also excluded LINK, the native token of Chainlink’s oracle network. Chainlink data providers lock up LINK tokens to incentivize their production of trusted information for blockchain applications.

The company argues that easily replicating oracle data reduces the value of LINK. There is also little connection between data providers and consumers fees, which makes providing data free.

Bitcoin and Ethereum rank high in the dynamic ecosystem

Among coins used for payments, K33’s Vinter Quality Index argues that Bitcoin (BTC) has the best network effects, faces the least regulatory risk, and poses the least concentration risk.

Payment Coins Ownership Concentration | source: K33 research

The world’s oldest cryptocurrency also boasts the most vibrant developer ecosystem of all payment currencies.

On the other hand, despite the efforts of the so-called killers, there is little evidence to suggest that Ethereum (ETH) will lose its crown as the number one smart contract blockchain. It still boasts the highest developer and ecosystem activity, followed by Polygon and Solana.

K33 also found that the longevity of Ethereum has ensured diversified ETH ownership, with the asset experiencing the best levels of inflation. On the other hand, Solana focused property and has the second best level of inflation.

Overall, the relative youth of smart contract tokens means that vesting schedules are still focused on ownership.

Cosmos (ATOM) scores highest among blockchain protocols. K33 says the expansion of ATOM’s planned facilities into the Cosmos ecosystem increases their chance of generating value for their owners.

Conversely, the once tumultuous Polkadot (DOT) ecosystem has calmed down with multimillion-dollar parachin slots now bringing in peanuts. DOT holders have little reason to expect much value creation, according to K33.

Blockchain Tokens Weekly Developer Activity |  Source: K33 Research
Blockchain Tokens Weekly Developer Activity | source: K33 research

The Vinter Quality Index of K33 ranks Uniswap’s top UNI token among DeFi tokens for its usefulness in setting Uniswap trading fees. Governance voices control the issuance of UNI, casting inflation expectations in a positive light.

For the latest Bitcoin (BTC) analysis from BeInCrypto, click here.


Adhering to the Trust Project’s guidelines, BeInCrypto is committed to providing unbiased and transparent reporting. This news article aims to provide accurate and timely information. However, readers are advised to independently check the facts and consult with a professional before making any decisions based on this content.

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