The CEO of Binance, Changpeng Zhao, has recently proposed that a new token pegged to the Bitcoin Cash (BCH) network should be listed on the decentralized version of the network, Binance DEX.
According to the latest token issuance and listings section of the company, BCH-1FD should be listed on the platform. The pitch is that the asset should provide an option for the people who are interested in Bitcoin Cash, a cryptocurrency born form a Bitcoin hard fork that happened back in 2017. They added;
“BCH-1FD aims to provide a token pegged to BCH value for trading on Binance DEX. In 2017, the Bitcoin community split into two: BTC and Bitcoin Cash(BCH). BCH is a peer-to-peer electronic cash system.”
It was also affirmed that there is no “conflict of interest” in this project, despite how the developers behind BCH-1FD are also involved in some other projects at the moment.
Each person who holds the BCH-1FD token would be able to trade it by actual Bitcoin Cash on Binance.com. To do this, the investor would simply need to have the asset on the wallet and to choose the right option.
The idea is that only 5,000 BCH worth of BCH-1FD should be circulating at first, but the supply of the token could increase over time as well. All assets will be backed 1:1 with BCH to maintain their value. Their post put it;
“BEP2 BCH is mintable, and the total supply will increase as market demands. All the issued BEP2 BCH will be backed 1:1 by native BCH sitting in a publicly disclosed reserve address that can be monitored by anyone at all times.”
At the same time, Changpeng Zhao also proposed the listing of two other trading pairs on Binance DEX. They would both be related to the stablecoin created by the company: Bitcoin (BTC)/Binance USD(BUSD) and XRP/BUSD.