4 Notes on Why Bitcoin is Tokenized on Binance Chain

2019-6-18 00:00

There has never been a shortage of curious developments which put an interesting sin on cryptocurrency projects. Binance, the world’s leading trading platform, is issuing new tokens on its native blockchain. Said tokens will be pegged to leading cryptocurrencies and are all proposed for trading on the Binance DEX platform.

The Bitcoin-pegged BTCB Token

On paper, it would not necessarily make too much sense for anyone to create a new token pegged to popular cryptocurrencies. A new token linked to Bitcoin would not necessarily gain any real traction, although there seems to be a method to this madness. Binance will peg BTCB to Bitcoin through a 100% reserve. That reserve currently sits at 9,001 BTC, albeit those numbers will fluctuate over time.

This new token will also serve as another “stress test” for Binance Chain. It will seemingly become a lot more commonly used compared to the GBP-backed stablecoin which is still in the testing phase at this time. As such, it will be interesting to see if the native chain can effectively make a meaningful impact in the world of cryptocurrency.

The BTCB/BTC Trading Pair

What is perhaps even more interesting is how Binance will effectively create a trading pair between BTCB and the real Bitcoin. Anyone will be able to convert to and from pegged tokens to the native coin and vice versa.  The expected price spread between both assets will be 0.1%, which is somewhat to be expected. The company will also ensure the buy orders and reserve funds will be bigger than the total supply of the BTCB token in question.

Why is This Token Created?

It is a bit odd to see such a token pegged to Bitcoin when one can easily trade with BTC on Binance. The company sees merit in this venture, primarily as a way to bring the pegged token to Binance DEX traders. As such, there is an expected trading volume and liquidity increase, which will bring more attention to the platform as a whole.

Some users will eagerly point out this will lead to some degree of centralization. That is true up to a certain extent, albeit the convenience provided by this pegged token should not be overlooked. It will be very interesting to see how the overall community responds to this new token and whether or not there will be sufficient trading volume for it.

Will Other Coins Follow?

That question is somewhat difficult to answer right now. Binance’s team is seemingly eager to create more tokens pegged to an existing value on their own blockchain. Whether it is a stablecoin or a Bitcoin-pegged asset, both options are clearly on the table right now. As such, it is not unlikely further coins, tokens, and assets will be tokenized on Binance Chain moving forward.

What other coins one would come to expect, is a different matter altogether. It seems plausible to assume the most popular top value coins could receive a Binance Chain-based alternative in the near future. A version of Ethereum or Litecoin on Binance Chain would not be out of the question. For now, all one can do is speculate in this regard, as nothing has been officially confirmed just yet.

Disclaimer: This is not trading or investment advice. The above article is for entertainment and education purposes only. Please do your own research before purchasing or investing into any cryptocurrency or digital currency.

Image(s): Shutterstock.com

The post 4 Notes on Why Bitcoin is Tokenized on Binance Chain appeared first on NullTX.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

Binance Coin (BNB) на Currencies.ru

$ 0 (+0.00%)
Объем 24H $0
Изменеия 24h: 0.00 %, 7d: 0.00 %
Cегодня L: $0 - H: $562.5
Капитализация $0 Rank 99999
Цена в час новости $ 33.81 (-100%)

binance leading platform tokens notes trading tokenized

Источник: nulltx.com

binance leading → Результатов: 126


Binance De-Risks Amidst Regulatory Pressure, Plans for US Crypto Exchange

Binance, one of the world’s leading cryptocurrency exchanges by trading volume, has been making wave after wave across the crypto industry in recent weeks. The Malta-based trading platform known for its exotic altcoin offering has saw its native crypto token soar, launched a DEX, debuted their Binance Launchpad platform for the much hyped IEO tokens,.

2019-6-14 01:06


MoonTrader ICO

MoonTrader team has developed and is supporting the trading terminal (MoonBot - moon-bot. com) which was introduced in October 3, 2017. Currently, the performance of MoonBot surpasses that of most existing trading systems as a result of its advanced functionality and the high security features designed to protect your trading activities.

2019-6-13 21:03


Cryptocurrency: Stop-limit in crypto may result in a far larger loss than you anticipated, says Ari Paul

Bitcoin Satoshi Vision [BSV], the eighth largest cryptocurrency by market cap, recently went through a massive surge in the market, with its value witnessing a double-digit rise. The reason for this rise was speculated be a ‘fake news’ associated with Craig Wright, the self-proclaimed Satoshi Nakamoto, and Binance, a leading cryptocurrency exchange.

2019-5-31 15:27


Binance margin trading will reportedly not be open for USA, North Korea, Iran, Cuba and Crimea accounts

Binance, one of the leading cryptocurrency exchanges, would reportedly not be providing its margin trading services to customers in the United States of America, according to a Reddit post. A user, Lifofifo who had previously pointed out that the exchange’s API had enabled the margin trading flag for nine cryptocurrency trading pairs posted an updated.

2019-5-29 00:00


Bitcoin [BTC], Ethereum [ETH], XRP remain far from their all-time highs as Binance Coin [BNB] breaks records

The cryptocurrency market’s climb back from the crypto-winter of 2018 has been the highlight of 2019, with Bitcoin [BTC], the world’s largest cryptocurrency, leading the charge. Recent analysis however, showed that most cryptocurrencies were still a long way away from their all-time highs achieved during the fag end of 2017, and the beginning of 2018.

2019-5-28 13:30


Is a Binance Stablecoin On the Horizon? CEO Teases Investors Should Be “Careful What You Wish For”

Binance is the leading cryptocurrency exchange in the entire world, so their decisions come with a lot of weight in the community. With simply delisting the Bitcoin SV token as a result of comments made by Craig Wright, multiple investors and exchanges boycotted the token as well. Considering the success of the company so far, […]

2019-5-1 23:04


Binance’s CZ Reaches Out to Elon Musk for a “SpaceXcoin”

The CEO of leading cryptocurrency exchange giant Binance has once again revealed his interests in pulling Elon Musk into the cryptocurrency space. CZ, as he is fondly called is not one to shy away from any opportunity that could lead to a collaboration with Billionaire entrepreneur and engineer Elon Musk, and the CEO has made this […] The post Binance’s CZ Reaches Out to Elon Musk for a “SpaceXcoin” appeared first on ZyCrypto.

2019-5-2 18:23


Binance’s CZ Reaches Out to Elon Musk for a “SpaceXcoin”, Goes Further to Reveal what Crypto can do for Space Exploration

The CEO of leading cryptocurrency exchange giant Binance has once again revealed his interests in pulling Elon Musk into the cryptocurrency space. CZ, as he is fondly called is not one to shy away from any opportunity that could lead to a collaboration with Billionaire entrepreneur and engineer Elon Musk, and the CEO has made this […] The post Binance’s CZ Reaches Out to Elon Musk for a “SpaceXcoin”, Goes Further to Reveal what Crypto can do for Space Exploration appeared first on ZyCrypto.

2019-5-1 18:23


Фото:

Irony: Coinbase Pushes Binance Launchpad Project MATIC To New Heights

Scalability is one of the biggest issues in cryptocurrency, and several leading blockchains are throttled at a handful of transactions per second. High-throughput networks like EOS, which can process 4,000 payments every second, have been able to capitalize – to the tune of a few billion dollars – on the sector’s unmet demand for fast […] The post Irony: Coinbase Pushes Binance Launchpad Project MATIC To New Heights appeared first on Crypto Briefing.

2019-5-1 22:12


Google Trends Shows Bitcoin SV (BSV) May have Enjoyed Massive Positive Publicity from the April Delisting

April has been a rather challenging month for Bitcoin SV (BSV) as leading crypto exchange Binance delisted the cryptocurrency from its platform followed by a few others who did same. This was mainly motivated by a desire to get back at Craig Wright for “bullying” some members of the crypto community who questioned his Satoshi […] The post Google Trends Shows Bitcoin SV (BSV) May have Enjoyed Massive Positive Publicity from the April Delisting appeared first on ZyCrypto.

2019-4-27 00:37


Is The “Ethereum Killer” On The Loose?

Binance has launched its own blockchain, raising speculation that yet another another Ethereum killer could be on the loose. Ethereum’s imminent death has already been reported many times, but does the leading smart contract platform really have anything to fear? Ethereum Has Seen Off Challengers Before Barely a month goes by where someone doesn’t announce […] The post Is The “Ethereum Killer” On The Loose? appeared first on Crypto Briefing.

2019-4-25 00:42


дальше еще 77 новостей →

Партнеры Currencies.ru

Аналог Notcoin - Blum - Играй и зарабатывай Монеты



Реклама на Currencies.ru

Самое свежее на Currencies.ru

Binance Announced Bitcoin-Pegged Token (BTCB) on Binance Chain

Coinspeaker Binance Announced Bitcoin-Pegged Token (BTCB) on Binance ChainBinance will launch tokens on Binance Chain that will be pegged to leading cryptocurrencies, starting with a Bitcoin-pegged token (BTCB) that will be traded on Binance and proposed for trading on Binance DEX.