Binance Chain Adds Ontology-backed Token ONT-33D; To Be Listed on Decentralized Exchange
Binance has issued ONT-33D token that is pegged by ONT coin on a 1:1 ratio. The coin has been developed on the Ontology Blockchain different from the token which is hosted on the exchange’s DEX Blockchain.
— Binance (@binance) April 20, 2020
Reports have surfaced that Binance is now issuing their own token. They are offering the ONT token on their Blockchain. Dubbed ONT-33D according to a spokesperson of the crypto exchange, it has been built on their Blockchain being subject to oversight from the BEP2 protocols.
ONT 33D backed 1:1 by ONT Coin
The tokens are backed by ONT coins at a ratio of 1:1. This was in a bid to ensure that the token price is equivalent to the ONT traded on open crypto as further highlighted by the spokesperson. The ONT coins based on Ontology’s very Blockchain would put them out of sync with the exchange’s decentralized Blockchain known as DEX as the coin and the token are operating on entirely different Blockchains.
“It will allow ONT holders to have decentralized exchange service”
Similarly, in 2017 Binance had unveiled BTCB token on their native Blockchain that was 100% pegged by Bitcoin. Traded against BTC, users would be able to BTCB for the currency it was backed by. The ideology was behind the move was that it would grant Binance DEX users access to tokens that have Blockchains other than Binance’s.
Notably Ontology has been ranked top 30 by analytics firm Coin Market Cap acquired by Binance in a $400 million deal. As per the writing it is currently enjoying a market cap of $271 million and trading volume of about $93 million USD. Although the total ONT supply has been estimated to be around 1 billion they are just over 650 million in circulation.
Binance through their spokesperson have reiterated that more is still to come as they intend to increase their capabilities soon. They have cited thay may add a staking feature and once its integration with their DEX Blockchain is complete the users will have a say in the governance as well as full control over their assets.