Binance’s Mining Pool Becomes 4th Largest One Amidst ‘More Adoption & Institutional Participation’
Launched less than seven months back, Binance Mining Pool is currently the 4th largest one with a hash rate share of 11.36% after Antpool, Poolin, and F2Pool.
The leading spot cryptocurrency exchange Binance launched its own mining pool in April this year, which at the time was the 11th largest one, accounting for less than 4% share.
At the time when the pool finally went public, Spencer Noon of DTC Capital had shared his skepticism towards saying the “galaxy brain power move” by Binance CEO Changpeng Zhao makes him nervous because this might led to exchange-owned mining pools to “prioritize their own transactions or even censor transactions to competitor exchanges.”
Recently, as we reported, a new Bitcoin mining pool actually promotes censoring certain Bitcoin transactions, which the community is against.
The increased market share is achieved by Binance amidst the bull run with Bitcoin up 120% YTD and ETH 253%.
“Right now, we are definitely seeing more users come in, more adoption happening, and more institutional participation,” said “CZ” in an interview. “Overall, things are going pretty well, I would say.”
Amidst this, Binance.US also expanded its services to the 10.5 million residents of North Carolina, now serving over 80% of the US.
Binance.US first opened the registration to the United States users in Sept. 2019, but residents of the 13 states, including North Carolina, were excluded due to local rules and regulations.
Binance.US is an independent entity that is fully compliant in the US, according to Zhao, who said in an interview with Bloomberg that they are hopeful they will be able to get the licenses to offer its services in other left-out states as well.
Recently, as we reported, Binance started blocking the users who are US citizens, which according to Zhao, they have “always” done.
“But users do find intelligent ways to get around our block sometimes, and we just have to be smarter about the way we block,” he said.
“Basically, we do continually try to improve our blocking. There are sometimes a few guys who want to circumvent our blocking and still use the platform, and we have to come up with a smarter way to protect that, and when we do, we block them.”
As for China making new moves to regulate the crypto market, it doesn’t impact Binance’s operations because the exchange is not in Hong Kong, said Zhao.
“Our position is usually we want to see other smaller exchanges to succeed first in any geographic location, and then we will expand our services potentially to cover those regions as well,” he said.
But still, the Asia market “is pretty significant,” an estimated 25% to 40% of daily trading volume originating there, he said.
Commenting on China's digital yuan plans, Zhao said the country is “way ahead” of other countries, which will put pressure on others. Being the first one to have a CBDC will mean attracting a lot of international usage and volumes, he added.
“This probably will help significantly in making RMB a more dominant currency in the world, and if that works, then I think that will put pressure on other central banks to get their own central bank digital currency out as soon as possible.”