Top crypto exchange Binance has plans to launch its own mining pool, according to a Russian crypto news outlet Coinlife on Tuesday.
The news was confirmed in the meantime by 3 different sources that are active within the mining business, on Wednesday, Changpeng Zhao, the CEO of Binance, tweeted about the pool. Here’s what Coinlife said on the matter:
“The company has already hired some professionals for this purpose, some of them former Bitmain employees. The launch is planned for the Q2 2020.”
Head of Sigmapool Also Talked About the Launch
Jakhon Khabilov, the head of the mining pool Sigmapool, has also talked about the launch, saying that Binance is already offering its potential customers very generous bonuses for making referrals. He added that the exchange has also been reaching to some Chinese miners to promote its soon-to-be-launched service.
Binance Follows Huobi and OKex
Binance is not the only one to launch its own mining pool, as Huobi and OKex have done this last year, with OKex in August and Huobi in September. At the moment, their pools are amongst the top 10 producing blocks in the Bitcoin (BTC) blockchain.
Poolin's, currently the 2nd largest share of Bitcoin Hash Rate, Vice President Alejandro de la Torre, says exchanges are motivated by liquidity to join the BTC mining farms. It’s a well-known fact that mining adds liquidity to exchanges in a very cheap manner.
Bitriver’s CEO Things Crypto Exchanges Should All Launch Mining Pools
Bitriver’s, one of the biggest Russian mining farms, CEO Igor Runets thinks that launching mining pools is the most logical thing to do for crypto exchanges, seeing both mining pooling and crypto exchanging are software-based businesses that don’t require any additional professional skills. Mining pool users happen to also be exchange’ users, so the client base largely overlaps, he added.