Binance CEO CZ Shares How BNB Coin Will Work on Decentralized Exchange
Changpeng Zhao, Chief Executive Officer of one of the most important exchanges in the market, Binance, announced that the BNB cryptocurrency would be used as the native gas for the new upcoming decentralized exchange (DEX).
Back on September 28, Changpeng Zhao wrote a tweet in which he talks about Binance, the decentralized exchange they are building and BNB.
Just had a productive meeting for #Binance #DEX (decentralized exchange), where $BNB will be native gas, and the exchange don't control user funds. Aiming for a public beta end of the year/early next year. Yes, we work on Saturdays, non stop!
— CZ Binance (@cz_binance) September 29, 2018
It is important to mention that Binance has been accused of illegally operating in New York without having a proper license. New York AG Barbara Underwood released a report in which she explains that situation about Binance and other two virtual currency exchanges, Gate.io and Kraken.
At the same time, Changpeng Zhao talked about the regulatory environment in the United States. He mentioned that the exchange is not only focused on the United States like Coinbase or Gemini but instead, it wants to expand all over the world.
He mentioned that the market outside the United States is a bigger market with more possibilities for the company. However, the regulatory environment depends on every single country, meaning that there will be some nations that will create a suitable framework.
The crypto exchange Binance is now headquartered in the European island of Malta. The country has taken very positive measures to attract cryptocurrency companies and blockchain-related businesses. The Polish BitBay exchange, for example, decided to leave Poland and settle its operations on the island.
Several countries are trying to better understand virtual currencies and blockchain technology before trying to regulate them. This might take a while, but the effects will also be positive in the long-term.
At the moment of writing, Binance is the largest exchange by trading volume, handling $987 million dollars in the last 24 hours. In general, the exchange moves more than $1 billion dollars.
The most important trading pairs at the exchange are BTC/USDT, XRP/USDT and ETH/USDT. These three pairs account for almost 40% of the total trading volume in the platform.
Binance’s decentralized exchange is one of the main goals of the company. Decentralized exchanges allow users to exchange cryptocurrencies in a seamless way without having to depend on the company to protect their funds. At the moment, most of the exchanges on the market operate in a centralized manner. Users have to deposit funds in these platforms, which can be vulnerable to attacks and hacks. Decentralized exchanges are much safer since users can transact directly from their wallets.
In A Recent Interview, Zhao Explained About DEX:
“I believe that decentralized exchanges are the future. I don’t know when that future will come – I think that we are at an early stage for that, so I don’t know if it will be a year, two years, three years or five years, but we have to be ready for it. We (Binance) are now actively investing our efforts, our time into this [space]. We have a dedicated team working on this.”
The exchange could be launched at the beginning of the next year or at the end of 2018. This is what Mr Zhao published on Twitter on September 29. He said that they want to launch a public beta by the ‘end of the year/early next year,’ and that they work on Saturdays as well.
At the moment, decentralized exchanges haven’t been so successful. In general, they lack the usability and user-friendliness than centralized exchanges have. It will be a key point to see how Binance will deal with the design of the exchange and the interface.
Each Binance Coin can now be boguth for almost $10 dollars. It is the 16th most valuable cryptocurrency and has a market capitalization of $1.17 billion dollars. After being included to the decentralized exchange and with regular reductions of its supply, the currency could evnetually reach new price levels in the future.