SUMMARY

Coni (Ticker: CONI) is the native token created and utilized by Coinbene Limited, the holdings company behind the digital platform called Coinbene Exchange. Currently based out of the growing cryptocurrency compliant nation, Singapore, Coinbene launched official trading in November of 2017 only transacting in cryptocurrencies (no fiat-crypto). Much like notable “trans-free” mining exchange Fcoin, Coinbene decided the new method to be an appropriate approach to garner a larger market share and to distribute their token. Shortly after the release of Fcoin in June of 2018, CONI was announced to the public as a way to get refunded transaction fees while trading. Committed to becoming a global legally compliant currency exchange platform, the goal of Coinbene is to become the world’s most trusted digital asset trading platform. Typically a top 30 exchange by volume prior to the release of the CONI token, the platform surged to #1 in the rankings for a period of time following the launch [1] . Similar to Fcoin, there were worries surrounding possible wash trading due to a trans-free mining structure to begin distribution. They have maintained their success following CoinMarketCap’s seperation of reported to adjusted exchange volumes. Coinbene is ranked #11 by reported volume but jumps up to #8 in adjusted volume [1][2]. CONI, an ERC-20 token, is responsible for bringing notoriety to the exchange but also brings a plethora of utilities. Coinbene users were originally distributed 100% of the platforms daily earnings in trading fees based on holdings proportion, and later given a voting ability for trade listings, the ability to be used as listing/partnership fee, and the ability to receive a maximum discount of 70% on trading fees [3]. Coinbene has plans to convert CONI into its own full-currency public chain

Team

Coinbene was introduced to the public in September of 2017 with their official trading having started in November of the same year. The platform did not receive mass notoriety until the release of their CONI token nearly seven months later. Following the regulations set forth by China in 2017, Coinbene was founded and is still based in Adelphi, Singapore, allowing them to have more freedom with legal ramifications.

According to their whitepaper, Coinbene had an original founding team consisting of 13 members. It is worth noting that a majority of these founding members are no longer listed on linkedin or crunchbase, signifying a change in leadership since the time of launch. C-level executives such as Donny Koh and Raymond Koh have since been removed, with crunchbase now listing the main executive as John Wong [4]. Wong was not listed within the initial whitepaper but now serves as the company’s Chief Growth Officer. According to crunchbase, Wong has a background in Physics, Mathematics, and Economics while also having 7 years of experience as a Data Science Consultant and Software developer prior to entering the cryptocurrency sphere [5]. While Wong may be the only notable executive listed here, Linkedin notes that there are still around 33 employees still part of the Coinbene project. Of those 33, Jerry Liu and Sunny Gong remain from the founding team as VP of business operations and COO of the China area of operation, respectively [6]. Liu had prior experience as a General Partner at Supercore Capital with a degree from the University of Washington in Finance. As for Gong, she had experience as Manager of Operations at Baidu with an education from the Contemporary Chinese Studies Program [7]. Although the turnover from launch has been quite high for the team, there are still a number of quality individuals involved in Coinbene and the CONI initiative.

Sentiment analysis

Open Source: No

Github Repositories: 10 [8]

Github Commits: 10 [8]

Telegram: 6,486 members [9]

Twitter: 9,938 followers [10]

Facebook: 4,058 followers [11]

Weibo Chat: 36,168 followers [12]

Reddit: N/A

Steem: N/A

Blog Activity: High Activity (Weibo) [12]

Utility and Incentives

Coinbene uses the CONI token as a means to incentivize users to trade on their exchange by giving them the opportunity to be refunded their transaction fees. Initially the token was distributed to the public by giving users back their trading fees in the form of CONI. This resulted in a fee model known as trans-free mining, allowing users to earn a token (or mine it essentially) by making more trades on the exchange. Once all of the public CONI tokens were distributed, the holders were able to garner 100% dividends from the platform based on the amount held. This means that at least 30% of all profits are given to the public holders (public initial distribution was 30%). The total supply of CONI is locked at 1,000,000,000 and used in a system of smart contracts on the Ethereum Blockchain to properly distribute dividends daily [13]. CONI can also be used as a means to vote on future listings, as a trading discount, and to pay for listing/partnership fees. That being said, the Coinbene team has plans to migrate to its own public blockchain in order to more efficiently conduct its business.  

The CONI token currently resides quite low in the rankings by overall market cap, as the circulating supply has been increasingly difficult to track due to the unusual distribution model. Aside from this, other indications point toward an intriguing future for the CONI project and Coinbene platform. They currently rank amongst the top ten exchanges by volume [14]. As the exchange continues to grow, the prospects for a new CONI blockchain will follow. The new blockchain will serve as the backbone of operations as well as a base for continued technical development.

Tokenomics

Having released their token following their initial launch and public trading, the decision was made to bypass the traditional ICO structure. A small portion of tokens were distributed to the private investors that tool part with the remaining tokens being distributed to the team as well as airdropped to users trading on the exchange.

Coinbene distributed their tokens in a trans-free mining method. Distribution to the public was equal to 30% of the total 1,000,000,000 CONI supply by rewarding them with an amount equal to their fees incurred while trading [13]. This means that if user X had $100 in trading fees during the time of launch, then they were subsequently awarded $100 worth of CONI tokens. It is unclear what the initial rate was for each CONI token, but they are trading at $0.042 USD at the time of writing [15]. Uncertainty surrounds the question of which private investors received 10% of the total supply with the amount raised also unreported. The total CONI token distribution is as follows [3]:

Screen Shot 2019-03-23 at 9.34.35 AM.png

CONI is currently traded against USDT, BTC, and ETH on the Coinbene exchange and is not yet traded on any other notable platforms, which is standard for an exchange token. The total circulating supply is not fully clear but all of the airdrop supply was distributed (30%), a portion of the marketing fund (<10%), and part of the non-vested private investor fund. That puts the circulating supply somewhere over 300,000,000 and as high as 500,000,000 CONI. This June will mark the one year CONI anniversary triggering the vested release of 10% (40,000,000) of the founding Team’s supply. The following is a break down of the Team’s vested CONI [3]:

Etherscan notes just over 500 active holding address, but this due to a large quantity held in on-platform wallets of the exchange. The top wallet is the locked funds for the team. The following is a depiction of the top 5 CONI holders according to Etherscan [16]:

coinbene_1.png

CoinMarketCap is unable to determine an appropriate market cap for the coin because of the unofficial circulating amounts, resulting in an inaccurate market cap ranking relative to other cryptocurrencies. Even so, CONI still maintains over $80,000 USD in 24 hour volume trading solely on the Coinbene exchange [15]. Although there is speculation surrounding the token and its overall value in price and cap, the potential remains with its current value being far less than its all time high. In fact, CONI was once trading as high as $0.69 per token during their run as the leading overall exchange by volume. This puts their current price over 49 times lower than their highest value [17]. If they are able to remain amongst the top 10 exchanges and grab some of the cryptocurrency exchange token market share, CONI has the potential to rebound within the industry.

Market Opportunity

The exchange sector of the cryptocurrency industry is littered with viable competitors such as Coinbase, Binance, Huobi and many more. CONI initially made its mark by following the approach of Fcoin, and as such has fallen from the rankings just as Fcoin has. The initial distribution model and current circulating supply have lead investors to question the stability of the token resulting in a pull back in interest [18]. Although Coinbene has not used trans-free mining as a permanent method, their decision to use it for their launch has brought continued uncertainty and disinterest in their native token [17].

Their unorthodox launch has brought about a rigid path to success of their token but they were still able to garner private funding and create a top 10 cryptocurrency platform. Their continued success as a platform is unquestionable, which leads one to believe that the potential for CONI is still significant. It is likely that more users gained on the exchange will continue to grow the value of CONI. It will be interesting to see if they can gain these users having to compete against the giants of the industry [1].

Current Status and adoption analysis

The CONI/Coinbene roadmap is concise and focused on adoption more so than development [3]. The release of CONI marked a massive marketable asset being completed within their development allowing them to automate dividends, bring on additional users, and set additional developmental goals. As far as their roadmap goes, the exchange has hit their goals of launching, building mobile apps, acquiring an initial 100,000 users, and expanding to additional jurisdictions. As the platform continues to expand and attempt to cover additional areas, their roadmap calls for allowance of US trading later this year [13]. Aside from the actual exchange, the CONI token has a remaining roadmap goal of becoming its own public blockchain [3]. Although it is unknown what the exact date of launch will be for the migrated chain, Coinbene claims to be working toward such for the foreseeable future.

Few companies were able to garner attention as fast as Coinbene following the launch of CONI, but it quickly waned due to a few barriers. Although they became very marketable to the public, their distribution method has caused the majority of investors to shy away from the token. Not only this, but there have recently been more reports on possible wash trading and allowance of bots by the Coinbene exchange to greater inflate their rankings amongst competitors [18]. Aside from these barriers, a major concern for the value of the token revolves around its main utility. Dividend distribution to CONI holders means that there is greater incentive to hold and earn rather than to trade away the coin. This shows an even harder case for determining its rue trade value. That being said, there is clear value in the CONI token and the success of the platform and token will be reliant on clearing up uncertainty in the validity of their volume.

References

[1] https://coinmarketcap.com/rankings/exchanges/reported/

[2] https://coinmarketcap.com/rankings/exchanges/adjusted/

[3] https://www.coinbene.com/#/coni

[4] https://www.crunchbase.com/organization/coinbene#section-current-team

[5] https://www.crunchbase.com/person/john-wong-bbff#section-overview

[6] https://www.linkedin.com/in/jerry308/

[7] https://www.linkedin.com/in/sunny-gong-83620516b/

[8] https://github.com/Coinbene?tab=repositories

[9] https://t.me/coinbene

[10] https://twitter.com/coinbene

[11] https://www.facebook.com/CoinBeneOfficial/

[12] https://www.weibo.com/u/6448353599?topnav=1&wvr=6&topsug=1&is_hot=1

[13] https://www.coinbene.com/static/WhitePaper/Coni.pdf

[14] https://list.wiki/CoinBene

[15] https://coinmarketcap.com/currencies/coni/#markets

[16] https://etherscan.io/token/0x2c949199cff14aeaf1b33d64db01f48fb57f592f#balances

[17] https://coincentral.com/coinbene-exchange-review/

[18] https://www.reddit.com/r/CryptoCurrency/comments/8tt29q/binance_exchange_drops_to_third_place_coinbene/