Authors: Haley H. (Investment Director, YZi Labs), Ella Z. (Principal, YZi Labs)

Compiled by: Jia Huan, ChainCatcher

Execution Summary

BNB (Build N Build) is the native token of BNB Chain, a public blockchain that is becoming a key infrastructure for the future global Web3 world. Compared to ETH (as DeFi infrastructure) or BTC (as a store of value), BNB is positioned to become an efficient transaction engine for the global Web3 economy.

It is a top-tier token with a deflationary mechanism and design. With a fully circulating supply and decentralized on-chain ownership (approximately 67% held by the public; approximately 27% to be burned; CZ holding <1%, data source see main text), BNB is expected to significantly reduce unlocking and centralization risks, thereby enhancing institutional trust.

According to data from Dune and Nansen, the BNB Chain ecosystem ranks first in DEX trading volume, active users, and active stablecoin wallet addresses, covering multiple areas including DeFi, AI, Memes, RWA, and consumer applications. BNB allows users to broadly access an on-chain ecosystem spanning various sectors through a single token.

Crucially, BNB is considered the only token that can potentially offer users comprehensive exposure to Web3 asset issuance and distribution (historically, native holding yields are around 15-20%). It essentially covers all tiers of key Web3 assets and sectors: from exchange-listed blue-chip stocks to mid-cap narrative assets, and emerging long-tail tokens on the BNB Chain. BNB allows users to directly participate in the growth and value of the entire crypto stack, seamlessly connecting CeFi and DeFi.

Among Layer-1 tokens supporting Digital Asset Trusts (DAT), BNB has demonstrated very strong and cyclically proven performance, with its annualized price increase reaching approximately 113% at one point, surpassing ETH, BTC, and SOL (data source in the main text). For institutional portfolios, BNB is expected to offer structural decoupling and asymmetric upside potential. It can enhance diversification and improve risk-adjusted value returns in multi-asset strategies.

The limited investment market for BNB in ​​the US is beginning to change: BNB's digital asset trust/ETF channels and listing channels on major exchanges including Robinhood and Coinbase have been launched. A diversified range of BNB-denominated financial products, such as BNB digital asset trusts, ETFs, and dividend funds, will further help BNB unlock liquidity in traditional finance (TradFi) and expand its financial functionality. Furthermore, the recent amnesty granted to CZ sends a strong and positive signal to the market, providing a unique window of opportunity for BNB to expand its popularity and adoption in North America and globally.

Table of contents

1. BNB Overview
2. BNB Token Economic Model
3. Growth Story
4. One of the strongest structural performances in history
5. Strategic Highlights
6. Conclusion: BNB is positioned as a high-efficiency transaction engine for the global Web3 economy.

1. BNB Overview

1.1 Introduction to BNB

BNB is the native token of BNB Chain and is the core utility and governance token of the chain. Originally launched in 2017, BNB has evolved into a highly utility, deflationary token widely used in various Web3 applications—from paying gas fees on the BNB Smart Chain to validator staking and participating in on-chain governance.

Beyond BNB Chain itself, BNB is also being adopted by other platforms as a utility token. For example, on the Binance exchange, BNB holders can enjoy trading fee discounts and participate in token issuance projects such as Launchpool and Megadrop. This combination of off-chain and on-chain use cases reflects BNB's growing role as a multi-scenario Web3 token spanning both decentralized and centralized ecosystems.

BNB's token design incorporates a dual burn mechanism: a programmatic automatic burn (based on on-chain activity and price) and a real-time BEP-95 burn (burning a portion of gas fees). These mechanisms aim to continuously and systematically reduce the supply of BNB, helping to align supply with network usage. Every transaction on the BNB Chain contributes to network sustainability by proportionally adjusting the supply based on actual economic activity, aiming to maintain a balance between usage, capacity, and token demand.

This design aims to ensure that as BNB Chain usage grows, the token supply adjusts accordingly (until a fixed cap of 100 million BNB). Currently, approximately 139 million BNB tokens are in circulation, and to date, over 62 million BNB have been removed through burning as the supply contracts towards its cap. This transparent and predictable deflationary model strengthens confidence in BNB's long-term role in the ecosystem.

1.2 The Practicality of BNB

BNB as the native token of Layer-1

BNB is the native digital asset of the BNB Chain, powering the chain on multiple levels. It is used as gas fees for transactions and as collateral for validator staking to ensure network security. Holders can delegate BNB to validators and receive protocol rewards in return for helping to secure the chain. BNB also supports on-chain governance, allowing stakers to vote on protocol upgrades and important ecosystem proposals.

It runs natively on BNB Chain, a high-performance, EVM-compatible blockchain that is currently expanding into a complete three-chain architecture:

• BNB Smart Chain (L1) – The main execution layer
• opBNB (L2) – Optimized for ultra-fast transactions in dApps
• BNB Greenfield – Decentralized storage powering new Web3 native applications

 Image 1: BNB's rich ecosystem and its outstanding performance as an industry leader.

BNB is deeply integrated into the BNB Chain DeFi ecosystem, actively used as collateral, liquidity, and governance stake in protocols such as Aster (a perpetual contract DEX), Venus (lending), PancakeSwap (a DEX), and Lista DAO (liquidity staking/BNBFi). According to DeFiLlama, as of October 29, 2025, the total value locked (TVL) supported by the BNB Chain DeFi ecosystem was approximately $16.2 billion. According to bnbchain.org, approximately 26 million BNB tokens are staked on-chain, representing about 19% of the total supply. These use cases highlight BNB's dual nature: it serves as both the network's fuel infrastructure and a valuable asset within dApps and the growing modular Web3 technology stack.

Overall, DEXs on the BNB Chain are leading the decentralized trading space—PancakeSwap in particular—further highlighting BNB's dominant position in on-chain liquidity and its ecosystem development.

 Image 2: According to Blockworks Research data, BNB Chain has the largest spot market share among all DEXs. 

 Image 3: Aster's on-chain perpetual contracts significantly outperform Hyperliquid, driving a breakthrough for BNB Chain.

BNB as a utility token: a platform token with a loyalty program.

BNB's utility extends to serving as a loyalty token within the broader ecosystem. Simply holding BNB grants eligibility for special programs and benefits. For example, BNB holders are eligible to participate in new token offerings through Launchpool, receive airdrops through programs like Megadrop and HODLer, and enjoy other community rewards such as Binance Alpha. These community membership benefits encourage participants to hold the token long-term and engage with the platform.

Holders will receive exclusive access to new token issuances, various token giveaways, substantial trading discounts, and other benefits, which distinguishes BNB from typical single-use or even dual-use tokens.

 Image 4: BNB Usability Overview

1.3 Industry Landscape

Layer-1 layout

BNB's broad integration—from DEXs like PancakeSwap to RWA tokenization projects—demonstrates its deeply ingrained role as infrastructure, powering on-chain finance and off-chain business collaboration. This breadth of ecosystem makes BNB one of the most operationally relevant tokens on the market—crucial for any Digital Asset Trust (DAT) aiming to participate in the broader Web3 economy.

BNB Chain is considered one of the most powerful Layer-1 blockchains in 2025, leading in user engagement and network activity. Its growth reflects a strong combination of retail adoption, developer momentum, and ecosystem depth. Compared to peers such as Ethereum, Solana, Base, AVAX, SUI, and Aptos, we believe BNB Chain demonstrates a relative advantage in scalability and user stickiness, showcasing its strategic value within the broader Web3 ecosystem.

BNB Chain Key Highlights (October 2025):

• Ranked first in daily active addresses (peaked at 3.4 million on October 13th)
• It ranks first in daily DEX trading volume (approximately $19 billion per day, accounting for about 61.25% of the market share).
• The fastest growing number of active addresses among all L1 servers (approximately 300% growth by 2025)
• The largest number of active independent stablecoin wallet addresses (approximately 20 million)

(Data source: BscScan, Dune, DefiLlama, Blockworks Research, Visa, Nansen)

 Image 5: BNB Chain DEX trading volume hits a new high, now leading other chains, with peak weekly trading volume exceeding $156 billion.

CEX pattern

Cryptocurrency exchanges represent a strategic high ground in the Web3 ecosystem, serving as the primary gateway for new users entering the digital asset ecosystem. Binance's CEX reportedly accounts for approximately 55% of this entry traffic, becoming the first point of contact for most global cryptocurrency participants. At the heart of this traffic is BNB, which has historically translated user engagement into an asset engine—converting raw entry traffic into sustained liquidity, network effects, and platform value capture through offering trading fee discounts, early launchpad access, and ecosystem rewards.

This design is strategically significant. At the exchange level, inbound traffic represents demand flowing into the Web3 ecosystem. Linking network usage to native tokens with clear utility and governance functions allows network throughput and token utility to scale together, combining adoption incentives with market participation.

 Image 6: Binance holds approximately 50% of the CEX spot market share and is poised to become a major Web3 portal.

2. BNB Token Economic Model

BNB is programmatically self-balancing. It operates within a programmatically set cap of 100 million tokens and is managed by two complementary mechanisms—Auto-Burn and BEP-95—which reduce the circulating supply quarterly and in real-time based on activity and value flow.

These two mechanisms together permanently burned over 64 million BNB, representing more than 31.8% of the historical supply. Based on the BNB price of approximately $1,115 on October 26, 2025, this means that approximately $72 billion worth of BNB has been burned. The model is designed for mechanical deflation, acting as a supply adjustment system that directly links token issuance to on-chain activity. As usage increases, the protocol automatically reduces the available supply—a feedback loop that stabilizes value and prevents excessive token flow.

This structure transforms activity into equilibrium: the more it is used, the more its monetary base self-corrects. When usage and prices rise, more BNB are burned, and the supply contracts; when activity declines, the burning rate decreases, and the supply tends to stabilize. This design principle makes BNB's supply model a stable mechanism aimed at achieving long-term equilibrium.

 Image 7: BNB's value balancing mechanism has removed more than 30% of the total supply to date—a cumulative destruction of approximately $73.56 billion worth of BNB.

BNB ownership has evolved into a broad ecosystem of holdings and uses. BNB holdings are widely dispersed throughout the network:

Public (non-affiliated parties)

• Approximately 66–67% — Unaffiliated public holders (on exchanges + self-custodied)

Related parties (foundations/exchanges/key individuals)

• Approximately 27% — BNB Foundation's burn reserve (for programmatic burning; not for sale).
• Approximately 4–5% — Binance.com Treasury (used for operational liquidity and custody)
• <1% — CZ's personal shareholding

 Image 8: BNB Distribution - Decentralized and Transparent (Approximately 67% Public; Approximately 27% Destroyed; CZ <1%)

Approximately two-thirds of the supply is held by unaffiliated public holders (on exchanges and in self-custody), while CZ's personal holdings are less than 1%. Binance.com's treasury holds approximately 4-5% of the total circulating BNB. About 27% of the circulating BNB is held by the BNB Foundation and earmarked for programmatic burning (not for sale) – a transparent on-chain mechanism that reinforces BNB's deflationary design over time. Furthermore, the largest wallets identified are burn/operation/custody wallets, not controlling positions, indicating low insider concentration and a more transparent, decentralized, and fair distribution.

3. Growth Story

3.1 BNB Chain Roadmap and Productization

BNB Chain is moving towards "a truly global decentralized finance system," a anticipated high-throughput, multi-chain platform designed for institutional-grade trading, comprehensive digital asset issuance, and real-world asset consolidation. The current roadmap's goals include:

• >20,000 transactions per second (TPS)
• Block final confirmation time <150 milliseconds
• A native zero-knowledge privacy module to support secure settlement and compliant confidentiality, such as transactions driven by zero-knowledge proofs.

A promising example is Binance's launch of Binance Alpha in mid-2025, a liquidity incentive and builder program that triggered a dramatic increase in on-chain DEX activity. BNB Chain's DEX trading volume briefly exceeded 70% of total on-chain spot trading volume, demonstrating the depth of potential user and developer engagement within the ecosystem.

 Image 9: Binance Alpha caused a surge in trading volume on the BNB Chain DEX.

Looking ahead, we have updated our goals for the next generation of BNB Chain (2026 and beyond) to achieve our next milestone: providing a CEX-like experience and serving millions of users in the development of a “global decentralized finance system.” Here are the key features coming soon:

• Near-instant confirmation: Designed to achieve confirmation times of less than 150 milliseconds for transactions, exchanges, and interactions.
• Nasdaq-level throughput: Designed to achieve over 20,000 TPS for complex on-chain operations.
• Scalable Virtual Machines: Designed to support massively parallel execution beyond the limitations of today's EVMs
• Native Privacy: Designed to effectively facilitate fund transfers and contract calls while providing compliant and user-friendly confidentiality protection.
• Web2-level simplicity with Web3-level control: designed to provide multi-signature, key rotation, and seamless authentication.

These key features will collectively form a modular transaction technology stack built specifically for the issuance, discovery, and settlement of digital assets. We believe that BNB Chain has the potential to become the preferred infrastructure for on-chain financial markets, with BNB being a key component of that infrastructure.

3.2 Stablecoins, Payments, and Real-World Adoption

BNB enables users to interact with a wide range of Web3 assets on the BNB Chain. It is evolving into a fully integrated trading and collateralized asset, supporting interaction with DeFi, payments, and tokenized applications on the BNB Chain. The BNB Chain consistently ranks among the top globally in terms of stablecoin trading volume and active users.

The recent integration has strengthened BNB Chain's presence in the following areas:

• Tokenized government bonds and interest-bearing assets (e.g., partnerships with Ondo Finance and Franklin Templeton)
• Establish a stablecoin liquidity hub through the deployment and cross-chain bridging of Circle (USDC).
• RWA pilot projects linked to exchanges include Kraken xStocks and tokenized fund infrastructure.

These initiatives position BNB as a fully integrated utility token spanning DeFi, payments, and even tokenized real-world applications. This broad range of use cases demonstrates that BNB's role is expanding from a niche area of ​​cryptocurrency into mainstream financial and practical scenarios.

BNB Chain boasts thousands of projects spanning decentralized finance, gaming, social tokens, and NFTs. As these metrics grow, so does the importance of BNB—it's the unit of value flowing throughout the economy. Users who want to participate in new project launches or use the latest DeFi applications on BNB Chain typically need BNB.

BNB is at the heart of CeFi and DeFi development. This unique positioning has brought it sustained demand and a broad user base. With the continued adoption of Web3 globally, BNB's multifaceted utility and deflationary design are likely to support its long-term value in a way that correlates with ecosystem growth rather than speculative cycles.

 Image 10: BNB Chain (BSC) leads and has the fastest growth in the number of active stablecoin wallets over the past 5 years.

3.3 Unlocking the US Market: Structural Catalysts Driven by CZ's Amnesty, BNB Digital Asset Trust/ETF Channels, and Listing Channels on Major Exchanges such as Robinhood/Coinbase

BNB's limited exposure to the US market to date is beginning to change. The launch of the BNB Digital Asset Trust (DAT), the BNB ETF, and listings on major exchanges including Robinhood and Coinbase are providing US participants with indirect access to BNB using fiat currency. Increased regulatory clarity in key jurisdictions is expected to accelerate institutional adoption.

The granting of a “full and unconditional” pardon to CZ provides a possible path to easing the “suitable person” restrictions imposed on CZ in previous U.S. government cases. This presents an unprecedented opportunity for the U.S. and its stakeholders to embrace and benefit from BNB Chain and its renewed growth; simultaneously, it is an opportunity for BNB Chain and BNB to accelerate developer adoption and recommit to enterprise-level integration in the U.S., encompassing payments, hosting, and Web3 infrastructure—all serving a historically under-weighted region and creating BNB Chain’s next growth engine.

3.4 Diversified BNB Products: Providing broader access for investors to participate in the BNB growth story.

A modular stack of BNB-related products includes regional BNB Digital Asset Trusts (DAT), BNB ETFs (where permitted), and BNB Income Funds. These are transforming on-chain liquidity into regulated distribution channels. Each form of BNB-related product has a unique mission:

• BNB Digital Asset Trusts (DATs) – including BNB Network Company (NASDAQ:BNC) and more BNB DATs that may be launched on the roadmap – are designed for investors seeking potentially amplified returns;
• BNB ETF - currently undergoing regulatory approval process - will be available through a broad broker/Registered Investment Advisor (RIA) channel, providing intraday secondary market liquidity and mirroring the price performance of the BNB token;
• BNB Income Funds – such as the Hash Global BNB Income Fund – are designed for institutions that cannot directly hold tokens but can invest in income-generating BNB-related funds.

Through effective KYC/AML, independent management/auditing, and standardized information disclosure, these products are expected to reduce operational friction and expand the reach of institutional and overseas user bases. From BNB digital asset trusts and BNB ETFs to BNB income funds, these diversified BNB financial products offer a range of choices across the spectrum of liquidity and returns for different types of investors.

4. One of the strongest structural performances in history.

4.1 BNB: Proven Superior Performance

Across multiple market cycles, BNB has consistently demonstrated structural superiority compared to its Layer-1 blockchain counterparts and benchmark digital assets. Its long-term value growth reflects a combination of functional utility, programmatic supply discipline, and large-scale ecosystem integration.

Unlike its peers whose performance is typically closely correlated with the broader market beta, BNB exhibits a structurally decoupled behavior. Even during bear markets (2018, 2022), BNB maintained relative strength and quickly recovered to new highs—demonstrating resilience, circulating supply compression, and demand stickiness—qualities that allocators focused on treasury management should value.

We believe that BNB's consistent pricing—rising ahead of narrative shifts and more effectively absorbing volatility—makes it an ideal base layer asset for long-term structured products, especially those that can generate fees or potential returns.

 Figure 11: BNB outperformed other assets across multiple market cycles.

4.2 BNB as a strategic asset

BNB is not only tailored for crypto-native users, but its design is also easy for newcomers with no crypto experience to understand and use. Introducing BNB can significantly improve risk-adjusted returns; for example, in simulated models, adding 2%–5% of BNB to a standard stock-bond-commodity portfolio increases the Sharpe ratio from 0.95 to as high as 1.25. This demonstrates the effectiveness of BNB as an alternative asset allocation—enhancing diversification and capturing Web3 engagement and potential returns. Current market conditions may present asset management firms with a structural opportunity to integrate BNB as an alternative asset.

 Figure 12: Comparison of Traditional Portfolio and BNB Integrated Portfolio

BNB has demonstrated a rare ability to decouple from broader crypto market trends, remaining strong even during BTC pullbacks and market-wide corrections. This structural independence is driven by BNB's dual engines: on-chain economic utility and centralized platform integration. Unlike assets that fluctuate purely with macro liquidity cycles, BNB's price tends to reflect real-world use, ecosystem growth, and value creation—which we believe makes it a fundamentally differentiated asset with lower correlation to speculative crypto betas.

4.3 BNB as an Equilibrium Crypto Asset in the Asset Trilemma

In the crypto world, everything begins and ends with the nature of assets. Compared to traditional assets, crypto assets are programmable, composable, and integrated with infrastructure, which makes their evaluation multidimensional and uniquely linked to three core asset dimensions: economic throughput, security, and liquidity—forming what we call the Asset Trilemma, a native extension of the macroeconomic "policy trilemma" into the crypto space.

BNB operates within the crypto asset trilemma—we view these three forces as shaping how a network grows and sustains itself.

• Economic throughput: The network effectively guides real user activity through transactions, settlements, and application deployments;
• Security: It robustly protects these activities through consensus, verification, and transparency;
• Liquidity: How smoothly participants can enter, exit, and trade with minimal friction.

In our experience, most systems sacrifice one dimension for another—more secure networks typically sacrifice economical throughput. BNB's architecture, through Proof-of-Stake Authority (PoSA) consensus and deep multi-site access, aims to maintain a near-balanced balance among these three dimensions.

BNB's built-in utility transforms it from a passively held asset into a gateway for active participation. Historically, BNB's platform engagement programs have provided meaningful incentives, significantly outperforming many mainstream crypto assets in terms of user engagement and retention.

BNB inherently comes with certain privileges and opportunities:

• Participate in exclusive programs: BNB holders can participate in ecosystem initiatives, applications, and governance. Launchpool events, airdrops, and governance voting are examples of benefits associated with BNB ownership.
• Integrated User Rewards: Many initiatives on the BNB Chain are designed to reward BNB holders and users. These incentives mean that there are real benefits to holding BNB long-term, even without considering price appreciation.
• A single token enables diversified participation: Holding BNB offers a wide range of forms of participation. Users can simply hold BNB and use it in multiple areas such as lending, trading, and gaming.

This dynamic strengthens the ecosystem: as more people hold BNB to gain these advantages, it drives greater decentralization and activity on the BNB Chain.

 Image 13: The Crypto Asset Trilemma

5. Strategic Highlights

5.1 The BNB ecosystem as a full-stack, high-efficiency Web3 asset issuance and trading platform

BNB's integration across centralized and decentralized platforms makes it a core participatory token in the Web3 era. Its combination of infrastructure, accessibility, and incentives makes it a compelling and practical token for long-term participation.

BNB's strategic highlights:

• Ecosystem Incentives: BNB enables users to participate in a variety of ecosystem programs that have historically provided additional incentives and rewards for holders.
• Core Participation Token: BNB serves as the core participation token in the Web3 era, connecting users with a wide range of blockchain applications and communities.
• A sustainable value model: The combination of BNB's utility and deflation can create a sustainable value model. Increased usage drives demand for more destruction and participation in programs, thereby increasing its utility value.
• Supportive ecosystem: The BNB ecosystem has supportive venture capital ecosystem players, such as YZi Labs, which are uniquely strategically positioned to bring in investment projects from the initial proof-of-concept stage, through financing and initial distribution, and provide support thereafter.

 Images 14 & 15: BNB uniquely provides end-to-end exposure to the entire lifecycle of Web3 asset issuance, discovery, and participation within the BNB ecosystem.

The BNB ecosystem, through its supportive venture capital partners such as YZi Labs, provides a robust, efficient, and comprehensive platform for asset issuance. These partners are strategically positioned to introduce investment projects from the initial proof-of-concept stage, guide them through financing and initial distribution, and subsequently facilitate their global trading and decentralized ecosystem growth through the BNB Chain. By ensuring the establishment of top-performing trading pairs (via CEXs), BNB is becoming one of the most powerful and perhaps most efficient full-cycle asset issuance hubs in the Web3 space.

In short, the BNB ecosystem integrates:

• YZi Labs and other venture capital players: Incubation begins here
• BNB Chain: Core Deployment Layer, Growth, and On-Chain Usability
• Exchanges: Liquidity, Launchpool, and Trading

A complete system has been built, providing full-stack Web3 exposure—asset issuance, discovery, and participation—all powered by the BNB ecosystem.

5.2 BNB's Returns and Access: Exceptional native return generation, potentially generating 15-20% annualized value.

Mechanisms like Launchpool have consistently driven large-scale BNB locking and generated attractive returns for users, delivering an average annualized value gain of 15–25% during historical peak periods. This dynamic not only programmatically reduces token circulation but also enhances user retention and ecosystem engagement, making BNB a powerful engine for both potential value and long-term platform synergy.

 Images 16 & 17: With 15–20% annual value enhancement and deep ecosystem integration, BNB transforms traditional asset holding into a more efficient way of participation.

This multifaceted integration makes BNB a unique and compelling asset for long-term Web3 exposure. Our research indicates that BNB has consistently led in economic value among major Layer-1 assets. Historically, BNB has offered competitive 15-20% annualized value gains, a significant advantage compared to other assets (e.g., SOL approximately 6.5%/ETH approximately 4.5%, according to third-party data, and we believe both are more dependent on external staking protocols), highlighting BNB's strong asset issuance and value-generating capabilities.

Unlike Bitcoin (which we see as behaving like digital gold) and Ethereum (which we see as behaving like foundational infrastructure), we believe BNB is best described as a “technology platform” for the Web3 era. We believe it combines an unparalleled ecosystem gateway through the massive traffic of Binance CEX, robust infrastructure provided by BNB Chain, and a fully operational token system offering practical features such as Launchpool and Alpha.

6. Conclusion: BNB is positioned as a high-efficiency transaction engine for the global Web3 economy.

BNB combines eligibility, utility, and programmatic price stabilization. It provides holders with broad access to the Web3 ecosystem and practical utility in numerous applications, while its built-in burn mechanism ensures long-term supply remains aligned with network activity.

BNB is more than just a platform token—it's a Web3 infrastructure token, it:

• It combines on-chain growth, built-in incentives, top-tier ecosystem access, and long-term supply compression.
• It provides users with exposure to the full spectrum of Web3 asset issuance and distribution.
• It covers key Web3 assets and sectors across all levels: from exchange-listed blue-chip stocks to mid-cap narrative assets and emerging long-tail tokens on the BNB Chain.

While ETH is pegged to DeFi infrastructure and BTC acts as a store of value, BNB is positioned to be an efficient trading engine driving the global Web3 economy and to provide an allocation tool for investors entering the Web3 world.

About YZi Labs

YZi Labs manages over $10 billion in assets globally. Our investment philosophy prioritizes impact—we believe meaningful results will naturally follow. We invest in companies at all stages, prioritizing those with solid fundamentals in Web3, artificial intelligence, and biotechnology.

YZi Labs' portfolio comprises over 300 projects from more than 25 countries across six continents. More than 65 of these portfolio companies have already participated in our incubation program. For more information, follow YZi Labs on X.

Disclaimer

This article is for informational purposes only and does not constitute investment, legal, or tax advice. It is not an endorsement, analysis, or recommendation of any digital asset, financial instrument, asset, service, entity, issuer, or any person, entity, or matter. It is not an offer to sell or to purchase any digital asset, security, or other asset. The information in this article is believed to be accurate as of the date of publication but is subject to change without notice. Recipients should conduct their own due diligence and consult with professional advisors before making any purchase or investment decisions. Past performance is not indicative of future results. Use of this information is at your own risk.

Forward-Looking Statements

This document contains forward-looking statements, including projections, estimates, and expectations regarding the future performance, adoption, and market conditions of BNB and related technologies. These statements are based on current assumptions and beliefs but involve risks and uncertainties that could cause actual results to differ materially from those of the intended outcome. Words such as “anticipate,” “expect,” “intend,” “plan,” “believe,” and similar expressions are identifiers of forward-looking statements. Any references to “growth,” “network effects,” or “ecosystem expansion” reflect the potential scalability and adoption of decentralized technologies, not financial returns or profit-sharing mechanisms. These statements are not guarantees of future performance. We undertake no obligation to update these statements after the date of this presentation.

Main risk factors

The risks and uncertainties described below are not intended to be an exhaustive list of all possible risks. Additional risks, including those currently unknown or considered insignificant, may also have significant adverse effects.

Risk of Loss: Investing in or purchasing digital assets or projects related to distributed ledger technology (including DeFi projects) involves significant risks, including the risk of total loss. This document does not take into account the investment objectives, financial situation, or specific needs of any particular individual, and we urge each individual to consult their legal and financial advisors before making any purchase or investment decision.

Regulatory Uncertainty: Digital assets and related projects are subject to rapidly evolving and uncertain regulatory frameworks globally. Future regulatory developments may impose restrictions or obligations that could significantly impact operations, liquidity, and value. Relevant regulatory agencies may determine that the digital asset constitutes a security, derivative, or other regulated product, thereby triggering licensing, registration, and compliance obligations.

Legal Risks: Failure to comply with applicable laws may result in investigations, fines, cease and desist orders, or other enforcement actions that could adversely affect operations. Furthermore, individuals may bring civil suits against the company due to any of these risk factors or other adverse circumstances.

Cybersecurity and Technology Risks: Digital assets may be permanently lost due to cyberattacks, private key breaches, phishing attacks, malware, or custody failures. Coding or design flaws in protocols or smart contracts may be exploited, leading to unintended actions, financial losses, or governance failures. Digital assets may be vulnerable to 51% attacks, Sybil attacks, or other consensus-level threats.

Operational and business risks: High transaction volumes or network outages may lead to settlement delays, increased gas/transaction fees, or impaired functionality. Failures of cloud providers, node operators, custodians, or integrated DeFi protocols may adversely affect operations. Network improvements may not be successful, may introduce bugs, or may cause ecosystem fragmentation (e.g., hard forks).

Market volatility and liquidity risks: Digital asset prices can experience extreme and unpredictable volatility, potentially leading to significant losses. There may not be sufficient buyers or market makers to support an active trading market, limiting exit opportunities. Exchanges and custodians may experience bankruptcy, fraud, cyber breaches, or operational failures, impacting our access to or ownership of assets. Valuation may rely on unregulated markets, leading to price manipulation, unreliable price discovery, or sudden loss of value.

Governance and Token Economics Model Risks: Token-based voting can be easily manipulated or centralized, allowing a small group to wield excessive control. Token issuance plans may dilute value or change due to network governance or unforeseen circumstances. Administrative authority may be abused, exploited, or lost, affecting token functionality or fund security.