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Open-Source Platform Lets Users Build Their Own Blockchain in Under 10 Min

An open-source blockchain platform says the industry is going the same way as the internet: Just like websites, every business now wants their own chain.

An out-of-the-box solution says it enables anyone, even with no experience, to build their own blockchain in under 10 minutes.

According to Nuls, businesses are going through a similar evolution as they did with the early internet, when every company wanted their own website: They now want their own blockchain. And although these firms may not fully understand how to deploy blockchain technology, they are aware of how their business may benefit from it.

Nuls aims is to “dismantle some of the biggest barriers” that are stopping individuals and companies of all sizes from creating their own blockchains. Hurdles for adoption include the need to ensure that networks are fully secure and the sheer cost of bringing them to fruition. On top of this, it can be an incredibly time-consuming process — not least because there aren’t enough skilled developers to keep on top of demand.

The future

The team behind Nuls believes that the future of blockchain will see plenty of third-party providers that simplify the process of establishing a blockchain network. 

One of the company’s solutions, known as ChainBox, allows developers to take their applications and deploy them to a new blockchain in the time it takes to drink a cup of coffee. Nuls hopes that this approach will enable entrepreneurs to focus on the product itself rather than the time or money it takes to deploy their applications onto a chain.

Nuls describes its ChainBox feature as language agnostic — giving developers more choices and making it easier to integrate existing systems with blockchain technology. The platform also says it is keen to ensure that users can personalize and enhance blockchains in line with their specific needs. An upcoming solution known as Chain Factory will allow users to add extra functionality and features through additional module applications that can be automatically downloaded for an instant upgrade.

The benefits

According to Nuls, the fact that major corporations such as Facebook, Amazon, Walmart, ING, IBM, Anheuser-Busch and JPMorgan Chase are creating or exploring their own blockchains powerfully illustrates an “inevitable trend” in which demand for chain-building will increase. Worth noting is that Visa, Mastercard, Uber and others will create nodes on Facebook’s Libra to run their own consortium chains. 

The platform says one of the most powerful benefits it can offer through its straightforward service is the ability to bring innovative products to market up to a year early, in addition to allowing partners to receive ecosystem support through consortium chains.

Nuls is available here

The company also places an emphasis on “ensuring that the blockchains its platform creates are flexible and scalable,” meaning that they can be adapted in line with growing demand and customized to deliver a better service to end-users. In addition, cross-chain transactions are supported and will be built to convert Bitcoin (BTC), Ether (ETH), Bitcoin Cash (BCH), Binance Coin (BNB) and more. 

Hackathon

Nuls seeks to illustrate how effective ChainBox is through an online hackathon that invites developers to build modules for “the world’s most adaptable blockchain” — even if they haven’t worked with these networks in the past. 

These modules can be built in any coding language the developer desires, and prizes of up to $500,000 are up for grabs. The top prize is reserved for applications that would solve a practical problem and be in substantial demand in a commercial setting. The winning project will enjoy incubation and a full range of business support, including funding and potential exchange listings, according to the team. The hackathon is scheduled to take place online from July 8 to Aug. 29.

The company has dual headquarters in the Chinese city of Chongqing and in San Jose, California. Nuls adds that it has an ever-expanding team of developers throughout Europe, as it pursues a vision of bringing an open-source, instant blockchain-building platform to the world.

Learn more about Nuls

Disclaimer. Cointelegraph does not endorse any content or product on this page. While we aim at providing you all important information that we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor this article can be considered as an investment advice.

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Binance Now Support BNB/SGD and ETH/SDG Trade Pairs

Binance Singapore

Binance has added more trading pairs against the Singapore dollar. The Singapore dollar (SGD) is now paired with the exchange’s own coin, Binance Coin (BNB), and Ethereum (ETH). The BNB/SGD and ETH/SGD trading pairs are an addition to the BTC/SGD trading pair which was the only trading pair enabled by Binance when it launched in Singapore towards the end of last month. Through a tweet, the Binance Singapore said:

“You got it!!! We have opened trading for BNB/SGD and ETH/SGD trading pairs on Binance.sg,”

On April 3, the CEO of Binance,
Changpeng Zhao, indicated that Binance Singapore would
launch before the end of April and become an addition to the few Binance
outlets that support fiat. Previously, only two Binance outlets supported fiat
trading; Binance Uganda and Binance Jersey. The exchange was launched three
weeks later.

However, the fiat support is being enabled in conjunction with Xfers, a payment services provider based in Singapore. As noted by Binance CEO, Wei Zhou, the inclusion of a local payment service provider is meant to develop a crucial fiat gateway.

Binance Singapore seems to have a special place with the country’s government. For example, in October 2018, a company owned by the Singaporean government, Temasek Holdings, through its subsidiary, Vertex Ventures, invested in Binance which was viewed as a way to help the exchange to set shop in the country. Apart from opening a shop in Singapore, Binance has made other notable achievements in the recent past.

Although BNB is issued by Binance, the exchange is pushing for it to be listed on other exchanges to drive adoption and trading. The exchanges facilitate selling and trading activities. Some of the exchanges that have already listed BNB include, HitBTC, BitMax, Gate.io, CHAOEX, COINBIG, Changelly, Yobit, among others.

DEX Launch

On Feb 20, Binance’s decentralized
exchange (DEX) entered public testing. The decentralized exchange utilizes
Binance’s own public blockchain known as Binance Chain. Notably, Binance will
keep a similar interface on its decentralized platform as it appears on its
centralized platform.

According to
Binance:

“Binance Chain is a blockchain project initiated by Binance and has since involved a whole community of Binancians. […] To ensure the creation of a blockchain that will serve as an alternative marketplace for issuing, using, and exchanging digital assets in a decentralized manner.”

Recovery after
Attack

This is one occasion that Binance deserves a big round of applause for its diligence and transparency. Earlier this month, the exchange lost approximately $41 million after more than 7,000 Bitcoins were siphoned by hackers.

The deposits and withdrawals were frozen and the exchange, instead of covering up the loss, was quick to acknowledge that its security had been breached. This was followed by a series of updates, investigations, and an upgrade to seal the loophole. Fortunately, those who lost their coins were covered by Binance’s Secure Asset Fund of Users (SAFU). The fund was launched in 2018 to compensate those who lost funds in extreme cases.

The post Binance Now Support BNB/SGD and ETH/SDG Trade Pairs appeared first on Ethereum World News.

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Binance Coin (BNB) Price Jumps Following Screenshot of Margin Trading

Binance Coin BNB Margin Trading

Binance Coin (BNB) continues to be one of the top earning cryptocurrencies in 2019. Since the start of the year, the native token to the leading cryptocurrency exchange Binance is up over 460 percent, with little halt in sight as the crypto markets turn even more bullish.

As previously reported by EWN, the rumor mill has been hinting at a forthcoming integration of margin trading on Binance. Speaking to community members earlier in the week, Changpeng Zhao confirmed that margin trading was being tested, but did not give a specific timeline on its release.

In a Twitter post published on May 24, the Binance team further added fuel to the speculative fire, with a series of screenshots that seem to all but confirm margin trading is coming in the very near future. While the post was making a tongue-in-cheek reference to their “dark mode/light mode feature,” the screenshot clearly displays the option for margin trading–a feature which is not currently available to traders.

“Dark mode 🌚 or Light mode 🌝? #Binance”

BNB responded in price to the news, jumping 9 percent as of writing and outpacing the gains of Bitcoin and most other top ten cryptocurrencies. While Binance is still not giving an exact date on when margin trading will hit the exchange, Changpeng Zhao claimed it would occur “very, very soon,” with the caveat that large-volume traders will have first access.

Despite suffering a $40 million hack in early May, Binance has continued to be a leader in the space of cryptocurrency exchanges and has paved the altcoin market valuation with the gains of BNB. While some have taken fault with the exchange’s handling of the hack, they remained transparent through the process of their security upgrades and were quick to notify investors that losts BTC would be covered via the #SAFU Fund.

Binance has also made a strong effort to boost the intrinsic valuation of their native token, at least in the eyes of investors looking to find fundamentals in the cryptocurrency market. While crypto may act more akin to a volatile currency than an actual digital asset, Binance has done its part to provide reason for traders to invest in BNB. The currency provides a discount on trading fees and is also required–in an increasingly large amount at today’s price–to participate in the Binance Launchpad lottery.

Given the trajectory of the exchange’s decisions to date, it’s possible margin trading will somehow feature into the use of Binance Coin. While the exchange has yet to make any statement on user access, it could require an account minimum of BNB, similar to the exchange’s requirements for Launchpad. Such a move would likely take the price of BNB even higher, although the exchange would have to contend with a realistic BNB holding at its current valuation.

Already investors are required to have 500 BNB valued at $17k, in order to receive the maximum amount of lottery tickets and insure their highest chance of Launchpad buy-in. If the price of Binance Coin continues to climb, Binance could buffer all but the highest-capital investors.

The post Binance Coin (BNB) Price Jumps Following Screenshot of Margin Trading appeared first on Ethereum World News.

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Binance Breach Fallout: Crypto Community Reacts But Bitcoin Barely Blips

When the largest crypto exchange on the planet announces
that it has been hacked one would expect an avalanche in crypto prices but
Bitcoin is already starting to recover a few hours later.

Binance Breached But Crypto Funds SAFU

Around four hours ago the world’s largest exchange by daily
volume reported
that it had suffered a security breach. Binance and its enigmatic owner
Changpeng ‘CZ’ Zhao have often boasted their security prowess and that digital
assets are safe or ‘SAFU’ (secure asset fund). That didn’t stop hackers making
off with at least 7,000 BTC
and a raft of user API keys, 2FA codes, and ‘potentially
other info’ according to the post.

Binance has already stated that it affected only hot wallets
and that it will cover the incident in full using its own fund dedicated to
backing up assets.

The crypto community reacted instantly with some applauding
the actions of the exchange for refunding stolen assets. ‘Bleeding Crypto’ tweeted
the following which erupted into a debate about the need for decentralized
exchanges;

“Why is the market freaking out. Do you guys not know how to read? Here you go I circled it for you!! Thank you for being transparent and keeping us up to date. I fully trust in Binance and feel safe with my Funds there.”

Others were not so convinced pointing out that not only
Bitcoin was stolen, the hackers also made off with a whole bunch of user data;

Binance has already suspended transfers stating that it will
take about a week to resolve the issue. A full refund within a week would be
pretty remarkable considering that people are still waiting for compensation
from the Mt Gox hack five years ago.

Bitcoin Price Reaction

Markets did react after the announcement as expected and
Bitcoin dumped 2.7 percent back to just below $5,800 according to Coinmarketcap.com. TradingView
with its Biftinex premium still reports BTC as trading over
$6,100
at the time of writing.

Trader and economist Alex Kruger pointed out that this would
have normally caused a deluge in a bear market;

“In a bear market this would have easily have caused a deluge. Either way, good excuse for bulls to take cover, bears to charge.”

Bitcoin
has already started to recover at the time of writing and is currently trading
at $5,860. Binance Coin dumped instantly as expected dropping 9% to below $20,
damage limitation will come for BNB since all transactions on the exchange have
been suspended in the aftermath of the breach.

Strangely enough Tron is the only altcoin in the green at
the moment after Justin Sun announced that he would donate the lost 7,000
Bitcoins back to Binance which really doesn’t need it as CZ pointed out;

The post Binance Breach Fallout: Crypto Community Reacts But Bitcoin Barely Blips appeared first on Ethereum World News.

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A Visual Guide to the Hot, New Crypto Fundraising Mechanism – the IEO

The ICO market might have cooled, but there’s still fundraising going on in the blockchain space – it’s now being done through the IEO, or initial exchange offering, and we break down how this mechanism is different our latest explainer video.

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Coinomi partners with Binance DEX, Positive for BNB

Binance

Cryptocurrency wallet provider, Coinomi has announced its partnership with Binance DEX in a move that would see them provide support for the BNB token.

The world’s leading cryptocurrency exchange, Binance, recently launched its mainnet and its decentralized exchange (DEX). Therefore and as expected, the Binance DEX, which the community at large expects to outperform and even change longstanding worries around DEXs like latency, liquidity and vulnerabilities of algo trading exploitation through front running. Of the many companies supporting Binance DEX is Coinomi, an open source multi-currency wallet. The wallet provider, through a tweet announced their support of the DEX’s native currency, Binance Coin (BNB).

 “We are excited to announce that #Coinomi now provides native support for @Binance’s $BNB Mainnet across all platforms!! Over the next few days, you will also be able to access #Binance’s #DEX platform and trade in @Binance_DEX from within your wallet!!”

This latest development is excellent for BNB coin as it will give users an option to store the cryptocurrency. While the BNB token was previously stored on ERC20 supported wallets, Coinomi adding support is a remarkable achievement for the coin that is already printing triple digit gains after bottoming up five months ago.

In total there will be 200 million BNB coins, 48 million of which will be locked and frozen and 11,654,398 burnt straight from the Binance chain. To facilitate a smooth transition, the exchange will assist users and technically every withdrawal request will be a “mechanism to convert ERC-20 BNB tokens into BEP2 BNB tokens”. As we can gauge from the comment thread, users and the general blockchain community are pretty excited, further improving sentiment that took a hit on Apr-25.

At the moment, Binance—after launching
their blockchain is swapping ERC-20 based BNB tokens and the announcement is no
doubt a boost for users keen on storing their assets away from the Binance
Chain. Note that there is no limitation and while are others who would use the
BNB coins on Binance DEX and the central Binance exchange, others would love to
store the cryptocurrency on wallets in case of future use. For this reason, the
support of Coinomi will be outstanding. Coinomi reveals that over the next few
days, users will access the Binance DEX platform and trade in the
cryptocurrency directly from their wallet.

Binance Chain and DEX Starts On the Right Foot

The launch of the Binance Chain is
off to the right start as the cryptocurrency exchange continues to receive
support from crypto service providers. While a few cryptocurrency projects
expressed the desire to move their tokens to the Binance Chain, there is an
expectation that more would follow over the coming weeks and months.

There have been talks amongst
cryptocurrency enthusiasts that Binance Chain would provide fierce competition
for Ethereum. However, the CEO of Binance, Changpeng Zhao continues to
reiterate that Binance Chain is not a competitor to Ethereum since they lack
some functions that the Ethereum Network has, such as smart contracts
deployment.

Binance maintains that the primary
objective of the Binance Chain is to help boost community growth.
Besides, it would aid the industry achieve its long-term vision of P2P trading
as laid out by Satoshi. For this reason, Binance continues to invite vetted
projects to crowd fund right off their platform and thereafter, trade directly
off the world’s largest exchange helping them steady thanks to an innovative crowdfunding
alternative.

The post Coinomi partners with Binance DEX, Positive for BNB appeared first on Ethereum World News.

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Sorry Folks, Binance Won’t be Buying Back BNB Coins

Binance

Binance has been operating its BNB tokens with the impression that it is purchasing them back from users and burning them. However, that is not the case as the cryptocurrency exchange made some changes to its original whitepaper and now won’t be buying back the BNB tokens from the holders.

Binance Says It Doesn’t Purchase BNB

The world’s leading cryptocurrency exchange, Binance says that it doesn’t buy the BNB tokens from its holders. James Spediacci, a cryptocurrency investor, made this point known in a tweet a few hours ago.

He tweeted that “we removed the buyback reference because we actually don’t repurchase BNB and simply reduce the supply by burning BNB.” However, this information is contrary to what Binance has been telling its investors.

Read: Will Binance Chain (BNB) Have a Devastating Effect on Ethereum (ETH) Sending Price to Double Digits?

On their official website, Binance, while describing the use of the BNB token, says that they would be using 20 percent of their profit in each quarter to purchase the BNB tokens. Afterward, Binance would destroy these tokens.

While at the beginning Binance has 200 million BNB tokens, the coin burn process would help them reduce the total amount to 100 million. But, things did change over time, and Binance would no longer honor the agreement.

The cryptocurrency exchange made changes to its whitepaper. According to the Block, Changpeng Zhao was quoted as saying that Binance had to remove the buyback reference. This is because they no longer want to repurchase the tokens and reduce the supply by burning them.

We recently updated our whitepaper to better describe how we actually conduct the burn. For example, we removed the buy back reference because we actually don’t repurchase BNB and simply reduce the supply by burning BNB. We also removed the profit language because some regions tend to associate profits with securities, and we would like to distance BNB from that. So going forward, we plan to describe the burn this way, and burn what we burn.”

In the new version of its white paper, Binance did remove the part where it says it would be using 20 percent of its profit in each quarter to repurchase the BNB tokens. The cryptocurrency has been gaining a lot of traction from cryptocurrency investors due to the buyback option they would retain. Now that the alternative could be unavailable, it would be interesting to see if people still have interest hodling the cryptocurrency.

What is BNB Worth?

BNB has been having a fantastic year and is now one of the top ten cryptocurrencies in terms of market cap. However, Changpeng Zhao says that they had to remove the profit language in their whitepaper as the cryptocurrency was considered a security in some countries because of that.

This fuels a critical question that has been around for a while now. What exactly are investors buying? It is still unclear to some people if BNB is a security token or a utility token. Binance provides different use cases for their cryptocurrency. However, the most obvious use case is on its decentralized exchange (DEX).

In a similar post earlier this year, it was indicated that the tokens burn by Binance are not from the open market. Instead, they could be burning the tokens in their treasury.

Also Read: Binance Chain Is Where Shitcoins Go To “Pump And Dump” One Last Time Before They Die

The post explains that people see the burn as a buyback scenario while in fact, it is not. The token holders do not have a claim on the cryptocurrency exchange’s cash flows since burning coins from their reserve doesn’t offer the same benefit as a buyback.

Comments from James Spediacci’s thread indicates that some users acknowledge that Binance burning tokens from its reserve don’t benefit the holders in any way. So BNB token hodlers should beware that they can use their tokens as stipulated by Binance but the exchange is not buying back those coins from them.

The post Sorry Folks, Binance Won’t be Buying Back BNB Coins appeared first on Ethereum World News.

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Weiss Ratings Suggests Binance Coin (BNB) Could be the Next Bitcoin

Binance Coin BNB Weiss Ratings 2019

While the entire market of cryptocurrency has had a strong 2019, one coin in particular has managed to post 300 percent gains since the start of the year. Binance Coin (BNB), the native currency to the world’s leading crypto exchange by volume, has outpaced both Bitcoin and the market with its massive gains over the last month. Given how Binance Coin has, in part, taken the reins of market movement, analytics firm Weiss Ratings is now asking the question: Is BNB the new Bitcoin?

Binance Coin is capable of operating as a standalone, decentralized currency, albeit with a fair amount of influence from its parent company exchange. However, it would be remiss not to point out that the price of BNB has largely benefited from its direct association with the exchange, as opposed to the utility or merits of the coin itself. For one,

Binance incentivizes users to purchase and hold a sum of BNB through several of its programs. Investors can receive a discount on trading fees if they pay with BNB, which is automatically deducted from a users wallet. Binance’s updated launchpad service is also driving the demand for BNB and, by proxy, its price. In order to participate in ICO token sales on Launchpad, investors must purchase–and hold for 20 days prior to the launch–a minimum of 100 BNB. At current market prices that equates to $2300 in BNB. However, investors adamant on participating in Launchpad sales are encouraged to buy and hold 500 BNB to receive the greatest chance of being drawn in the lottery, an amount that would come to $11,500 (about the cost of two BTC).

All of this, in conjunction with the price of BNB rising 300 percent since the beginning of 2019, has led Weiss Ratings to question, via Twitter, if the currency can replace Bitcoin as a market leader. Before today’s BTC price rally, which saw altcoins across the board drop as Bitcoin improved in dominance, Binance Coin appeared to be dictating the direction of the market. BNB posted several consecutive days of double-digit price gains, bringing both renewed interest and investment into the space of cryptocurrency.

As Forbes points out, Weiss has given BNB the same rating as some of the industry’s most prolific cryptocurrency. Ripple’s XRP, EOS, Bitcoin and Binance Coin are the top four cryptocurrencies as evaluated by Weiss, and the only currencies to receive a grading of B-. Even Ethereum, which has been the darling of the industry for several years, scored lower than BNB with a grade of C+.

Binance Coin, seemingly defying odds, has climbed into the top ten of cryptocurrency by market capitalization and is threatening Litecoin for the sixth overall position. The coin commands $3.2 billion in market capitalization, and has room to grow with a circulating supply of 141 million BNB–far less than other coins such as XRP and EOS.

In the end, BNB’s strong ties to Binance may continue to provide enough incentive for investors to take interest in the asset, even at the exclusion of market leaders like Bitcoin. While Binance Coin may not fit the traditional mold of cryptocurrency, or even be the most representative coin for the industry, it does offer traders utility that is hard to come by in other currencies.

The post Weiss Ratings Suggests Binance Coin (BNB) Could be the Next Bitcoin appeared first on Ethereum World News.

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Will Binance Chain (BNB) Have a Devastating Effect on Ethereum (ETH) Sending Price to Double Digits?

Binance

It may be the pioneer in the smart contracting but because of what it means, the space is crowding up and so is competition for clients. However, the launch of the Binance Chain and the movement of some projects to the new blockchain could be the biggest challenge for Ethereum as a platform, affecting the valuation of the second most liquid coin (ETH) in the space. Will Binance Coin (BNB) flourish as Ethereum (ETH) wither?

Binance Chain Looking More Attractive For Developers

With Binance launching its mainnet this week, project developers have the option of migrating to Binance Chain or remain loyal, continuing their development in Ethereum. Some projects may choose to stay due to what Ethereum offers in terms of liquidity (as the largest crypto exchange) and possibly a scalable network with Serenity in Ethereum 2.0.

Even so, while Ethereum has been making progress, it is slow in comparison to Binance chain. Binance CEO, Changpeng Zhao says that Binance DEX doesn’t challenge Ethereum since it doesn’t have smart contracts and it a trading platform.

Instead, the DEX seeks to counter all the fragilities present in centralized exchanges like security and control. However, there are talks that developers could ask for smart contracts deployment on the Binance DEX.

Read: Binance Chain Is Where Shitcoins Go To “Pump And Dump” One Last Time Before They Die

Besides smart contracting, Binance Coin (BNB) has been outperforming other assets and could double in days ahead. Note that although ETH continues to maintain its position as the second largest cryptocurrency in terms of market cap, BNB has been steadily rising and currently occupies the seventh place on the liquidity list with a market cap of $3,432 million. This is a huge achievement for an exchange-based coin, making it even more attractive for investors and exchange fans.

The launch of Binance DEX could also help boost the BNB price higher. The Binance coin would be the primary cryptocurrency on the decentralized exchange. Thanks offers laid by the exchange for users keen on using the coin for their DEX operations, increase use will naturally pump prices and therefore increase the value of the asset now that the coin would be in use by legacy Binance exchange and those desirous of security and adhering to blockchain principles.

Needless to say, intense competition from Binance Chain–plus Tron and their ambition of side-chains and irresistible offers– could have an eroding effect on price if Vitalik chose not to evolve and fast-track development.

Despite Slow Development, Ethereum Is Decentralized

The Ethereum network did implement the Constantinople upgrade earlier this year. However, progress on the blockchain continues to be slow. The big argument by some crypto enthusiasts is that Binance DEX is not a decentralized entity and it is merely using the IEO hype to repackage failed ICOs in the form of IEOs.

James Spediacci, a cryptocurrency investor, says thatBinance Chain is where shitcoins go to pump and dump one last time before they die. It’s just a lint trap for all the scams that were on Ethereum. $BNB doesn’t represent equity in Binance. It’s just being pumped by token burns and people using it to gamble on shitcoins.

Several cryptocurrency enthusiasts maintain that the Binance DEX is centralized to a certain extent since it is in the control of Binance, despite claims that it will be a decentralized exchange.

Also Read: Breaking: Binance Expected To Launch Blockchain Today, Decentralized Crypto Exchange To Follow

This feature is a huge turnoff for some people as the primary objective behind cryptocurrencies is decentralization.

Even so, critics are of the view that the space would quickly spiral down as shit coins proliferate thanks to what Binance and what other exchanges have shown interest in–repackaging scam projects and giving them air-time in a supposed world’s largest crypto exchange by adjusted volumes.

Nonetheless, while there is confidence amongst the Ethereum supporters that the Binance Chain would not pose much of challenge, Murphy’s Law could dash their optimism.

The post Will Binance Chain (BNB) Have a Devastating Effect on Ethereum (ETH) Sending Price to Double Digits? appeared first on Ethereum World News.

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Binance Chain Is Where Shitcoins Go To “Pump And Dump” One Last Time Before They Die

Binance

There is a lot of hype around the Binance Chain mainnet and rightly so. While Binance Chain is the largest mainnet by a cryptocurrency exchange, an observer warns that the platform could become home to shitcoins where pumping and dumping would occur.

IEOs Mania

Initial Coin Offerings (ICOs) were the rave in 2017 and the early part of 2018. However, the ICO token sale process is no longer preferable within the cryptocurrency community. A report by Diar. Co last year indicated that over 86 percent of the ICOs carried out have failed. Also, the report added that 70 percent of such tokens have less value than the prices at the fundraising stage.

Read: Binance Coin (BNB) Price Defies Odds, Up 300 Percent in 2019

The fall of ICOs led to the emergence of security token offerings (STOs) and Initial Exchange Offerings (IEOs). IEOs work similarly to ICOs with the exception that cryptocurrency exchanges host the token sales on their platforms. This process allows projects to access more customers while investors would be able to invest in viable projects from the start.

For consumers, IEOs indicate that a crypto exchange vouches for a project. This reduces the possibility of scam projects getting sold to investors. Token developers would also find it easier to list their cryptocurrencies on exchanges following IEOs. Meanwhile, for cryptocurrency exchanges, they could raise money from listing fees

However, the IEOs hosted on Binance–and others plan to follow suite–show signs that mania is returning, similar to what was experienced with ICOs. Consequently, Binance Chain and other exchanges may as a result of their initial support host shitcoins on their platform as investors/speculators rush for short-term gains over what the project promise in the long-term.

Binance Chain and Shitcoins?

James Spediacci, a cryptocurrency investor and a critic, believes that Binance Chain will be home to shitcoins. He says that shitcoins will integrate on Binance Chain and due to the hype around the platform, they could pump and dump one last time before they die.

As noted, Binance is turning its Launchpad into a one-stop shop for token offerings, allowing project developers to raise funds, and start trading on the exchange from the first day. James says that Binance is using the lessons of the last ICO cycle with IEOs, but the process still contains shitcoins.

Participants should be aware that crypto remains unregulated and despite binding laws in some countries, there is irrefutable evidence reveal that some ramps do record fake volumes to entice customers and projects. A report by BitWise Asset Management a few weeks back reveals that 95 percent of Bitcoin’s trading volume on Coinmarketcap is fake.

Also Read: Why >9000 percent Increment is Nothing for Binance Coin (BNB)

The trend of crypto exchanges recording fake trading volumes will continue with the emergence of IEOs. Already, exchanges like Huobi, KuCoin, Bittrex, Bitmax, and LATOKEN are hosting token sales similar to Binance Launchpad. The cryptocurrency exchanges would most likely falsify data to convince project developers that their platforms are perfect to host token sales.

IEO Mania Would Not Stop

James Spediacci doesn’t see the craze around the pump and dump projects stopping anytime soon. He stated that “Since the demographics of Binance customers is either clueless investors or shitcoin gamblers interested in pump and dumps, it just shows they understand their customers well.”

And his views did trigger a debate. According to Crypto Warrior, most investors and traders currently following the Binance Chain and BNB bandwagon don’t care about the shady practices as long as it makes their portfolios bigger.

Similarly, Kamonie Williams gives his two cents saying that there will always be people who will buy into a shitcoin because it has a white paper and can do 1 million tps at mainnet that is five years away.

The post Binance Chain Is Where Shitcoins Go To “Pump And Dump” One Last Time Before They Die appeared first on Ethereum World News.