Binance is about to have a new chapter of its story. The leading crypto exchange in the world has recently launched its own decentralized exchange (DEX), Binance Chain.
This new chain is basically the future of Binance. The old ERC20-based Binance Coin (BNB) tokens will finally be carried to the chain now.
Today, according to a blog post from the official Binance site, Changpeng “CZ” Zhao has made the first successful transaction using the chain. On April 23, all BNB tokens will be carried over to the new Binance Chain and the DEX will start to work soon afterward.
According to CZ, the new chain is “fast and sleek” and people will be able to enjoy the use of this “new chapter” of the company’s history soon. Until the tokens are passed to the new chain, though, no trading pairs will be available on the decentralized exchange.
Can BNB Tokens Finish Off ERC20 And Ethereum?
Binance will now swap all its ERC20 Ethereum-based tokens for BNB tokens, which use the BEP2 technology. In order to convert the tokens, a huge undertaking process will have to make. For the users, though, the process will be fairly simple.
According to the blog post, users will be able to withdraw their tokens to a ERC20-based address and to receive BNB tokens on their new addresses, migrating to the new chain.
All the rules of the new tokens will be similar to the ones that BNB tokens had before. Basically, you just need to swap them following the exact instructions provided by the company and then you will be able to use your new tokens.
The old tokens will be burned after they are traded by the new ones. By burning the ERC20 tokens when new BEP2 tokens are created, the supply will remain always constant.
Binance has explained that it will continue to support the old tokens for the “foreseeable future”, so there is no harm if you do not trade them yet, however, you may have to do it someday.
In related news, Binance is also trying to convince Ethereum-based companies to migrate to its own chain now in what is a clear move to take Ethereum’s place. Because of this, this can be seen as a move to get more control over the market.
BNB Price Surged After The Announcement
As expected, the price of Binance Coin tokens has surged after the announcement was made by the CEO of the company. BNB is up 220% in the last three months, which just shows how important the token has become this year.
Now, BNB is trading 11.5% up in the last 24 hours. Its price is breaking its all-time high now with the value of 0.00432 BTC. Can we see even more growth in the future? Probably, yes.