Bigger and Better Things
The currency – from one of the largest cryptocurrency exchanges in the world (Binance) – has moved to its own blockchain space, proving itself as a primary competitor to the second-largest cryptocurrency in the world by market cap. The blockchain is called Binance Chain and seeks to allow crypto startups to issue new currencies directly via the company’s platform.
Joe DiPasquale – CEO of cryptocurrency fund Bit Bull Capital – explains:
Binance Coin is rising in price due to the anticipated unity it will offer as the Binance ecosystem grows. Binance has a big edge in the space with a high-volume exchange and a big user base. They are doing the right things and that is reflected in their token’s price appreciation.
The ledger will also serve as the home of Binance’s future decentralized exchange. The system will allow customers to “trade more directly” than they would on centralized exchanges.
Kyle Samani – co-founder of the crypto hedge fund Multi-Coin Capital Management in Austin, Texas – believes this move will be very good for Binance and position it even higher in the crypto food chain. He states:
The launch of Binance Chain is one of the most important crypto events of the year. Binance Chain is competing with one of the primary use cases that helped catapult Ethereum into what it is today: issuing and trading tokens, and because Binance Chain is designed with that specific purpose in mind, it does a much better job (speed, transaction fees, etc.) than Ethereum can. I expect all of the regulated token offerings and [initial coin offerings] ICOs moving forward to take place on Binance Chain, as it simply provides a much better platform for these use cases.
One of the chain’s biggest pluses is the fact that companies will be able to raise funds through ICOs. Binance offers lots of exposure and liquidity to startups. Many of these startups have complained about their previous option, the Ethereum network, saying that it was often difficult to get their coins listed even after paying listing fees.
The move also stirs questions regarding the future of decentralized exchanges, known as Dexes. Many believe that this will spark higher usage of Dexes, which at press time, account for only a small portion of trading in the crypto space.
Final Words of Wisdom
Jeff Dorman, a partner and portfolio manager with Arca Funds (based in Los Angeles, California), claims:
Users and fanatics will now be able to directly participate in the economics of the platform without any barriers. The biggest question is, ‘Will the Binance Chain be able to offer the same speed and functionality as the Binance Exchange?’ We think so.