Binance DEX Ready to Hit the Testing Phase while Betting on the 2nd Round of ICOs
The decentralized exchange of the biggest cryptocurrency exchange Binance is soon going to hit the public testing phase.
Binance CEO, Changpeng Zhao took to Twitter to share the announcement of Binance Chain’s public testing on February 20.
Recently, Zhao had shared that the decentralized exchange would be not so decentralized in the beginning and Binance would have much influence on it. He had also shared that they would be charging a hefty amount that is $100k as a listing fee for new coins.
Though it will be adjusted over time, it is a deliberate move on the company's part in order to tackle the scam projects. According to the latest Diar research,
“The $100K listing fee, however, might be a drop in the bucket after seeing BitTorrent raise in excess of $7Mn in a bear market and selling out in minutes on Binance who hosted the Initial Coin Offerings (ICO) just weeks ago.”
Betting on Initial Coin Offerings Second Coming
The Diar research further states, with its upcoming DEX that has an “inbuilt initial coin offering mechanism” it would raise the demand for its native coin Binance Coin (BNB).
“With less than 1% of Binance volume trading into pairs with the exchange's coin, BNB, the popular trading venue has announced the imminent release of their Decentralized platform that would by design amp up demand for their native coin. And with an inbuilt Initial Coin Offering mechanism raising capital in the exchange’s native currency, Binance could be aiming to see liquidity shift over to their Decentralized Exchange should traders wish access to early investment opportunities.”
After forking the Cosmos Tendermint blockchain, Binance sacrificed the smart contracts in order to offer seamless and high frequency trading. The research notes that the choice to not built on Ethereum is the second major crypto operation after Aragon in recent weeks.
Binance has addressed the main concerns plaguing the current DEX adoption through a well integrated user experience and tackling speed with blocks being confirmed ever second. However, it points out, making people shift to DEX is certainly a big concern as more than 80 percent of transaction flow to third-party custodians that highlights, “not your keys, not your Bitcoin.”
Currently, the native coin BNB is accounting for only 0.8 percent of the total traded volume from pairs.
Last year, Zhao has stated, “BNB will be native gas,” on the Binance DEX. Moreover, it is going in the opposite direction of Security Token Offerings (STO), by “making it ever-so-simple to quickly create tokens and raise funds in the exchanges native coin,” that will make BNB far more valuable.
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
Diar concludes the research with the fact that though Binance is one of the selective exchanges when it comes to listing tokens, it is ultimately the traders who hold the bags and “for Binance, whether markets up or down, it’s business as usual.”