Binance Launched a Bitcoin-Indexed Token on Their Native Blockchain

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In a blog posted last June 17, it was announced that the major crypto exchange Binance launched a Bitcoin indexed Token called BTCB on Binance chain, which is their native blockchain.

According to the announcement, the recently launched BEP2 token shall be traded on the crypto exchange Binance. In addition, it will be available also on “Binance DEX,” which is Binance’s decentralized counterpart. Moreover, this token is one of the series of crypto-indexed tokens, in which the crypto exchange plans to launch to their native blockhchain, the Binance Chain.

Also, the post indicates that the BTCB will be backed-up by Bitcoin (BTC) 100 percent, and the reserves will be recorded in a public blockchain, therefore making the reserves to be easily visible. The major crypto exchange has also noted that the use of Bitcoin (BTC) as a back-up asset of the newly-released token will enable more convenient and better audits, which is because wallets will be available to everyone by means of the public explorer for blockchain:

“The blockchain provides a much simpler way for crypto reserve audits than that of a traditional tether of bank balance.”

On the crypto exchange Binance, the new token shall be traded contrary to Bitcoin (BTC), which will allow crypto traders to exchange the BTCB for its pegged native asset.

The post also explained that launching cryptocurrency-indexed tokens on Binance Chain would give an access for the Binance DEX users to tokens which are not on Binance chain, as well as the tokens which have its own blockchains.

Moreover, Binance also stated that the increased options of tokens in the decentralized crypto exchange will lead to increased liquidity and volume. Therefore this would increase Binance DEX’s utility value further. However, the crypto exchange also states that such a method will compromise decentralization. They said:

“As this method is centralized better than that of atomic swaps, we are in the belief that it offers a better degree of usability to most crypto traders. And also, most crypto traders already trust Binance.com for holding their funds nevertheless.”

In a seemingly related tweet yesterday, Changpeng Zhao, the CEO of Binance, has announced that Binance plans in moving 9,001 Bitcoins (BTC). Hours later, another tweet was posted by the Changpeng Zhao, apparently confirming that the moved funds were meant to backup it BTC-backed token.

As per the report of the Cointelegraph at the early part of June, Binance DEX plans to block site access to crypto traders that are based in twenty-nine countries, which will include United States.

Crypto exchange Binance has recently made several changes. Last month, Binance had disclosed a hack amounting to $40 million and revised their user agreement, which will bar traders based in the United States from its main platform, starting this September. In addition, Binance has also updated their service terms and plans to launch separate cryptocurrency exchange for the Americans.

The hybrid crypto exchange owned by Bitfinex and a competitor to the Binance DEX called “Ethfinex Trustless, has announced the launch of their decentralized on-chain over the counter service recently.

 

 

 

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