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Changpeng Zhao Likens Binance Chain To Ethereum, BNB To ETH

Binance Chief Speaks On DEX — BNB Like Ethereum (ETH) 

As reported by Ethereum World News last week, Changpeng Zhao, CEO of the world-renowned crypto startup that is Binance, recently sneak peaked its most promising venture yet, the so-called “Binance Chain” and the decentralized exchange (DEX) that will be based upon it.

Through the medium of a short video, an unnamed member of the project’s vast team outlined the latest edition of the DEX demo, which sports a graphical user interface (GUI) that is reminiscent of the startup’s world-renowned centralized exchange. The seven-minute video outlined a number of the venture’s pertinent features, including the issuance of trade orders, which were surprisingly quick, account and wallet creation for the newfangled blockchain, and the in-house block explorer.

While the ambitious project was well-received by the community at large, with Binance Coin (BNB), the startup’s in-house crypto asset, posting a hefty single-digit gain following the DEX sneak peek on Tuesday/Wednesday, little is still known about the venture’s exact intricacies and caveats. Former Bloomberg employee Zhao, who also goes by “CZ,” recently took to CoinTelegraph to lend his insight on the matter.

The long-time crypto advocate, who made an entree into this innovative ecosystem years ago, told the media outlet:

The Binance DEX is a decentralized exchange that allows you to trade you to another token on our chain… The chain also allows you to send and recieve BNB, which is the native coin, plus other tokens. So the blockchain can allow you to send and recieve [tokens/coins] directly, only if I want to send them to you.

CZ, doing his best to explain Binance’s latest initiative in-depth, added that the blockchain his upstart developed is very similar to how Ethereum, ETH, and ERC-20 tokens operate and are transacted/traded.

Touching on what sets Binance’s DEX and blockchain apart from competing networks, namely Ethereum, Stellar, EOS, or Tron, the industry savant first noted that ideally, cryptocurrency transactions would be “instantaneous.” Yet, as seen by the block times posted by the Bitcoin network, for example, transactions almost always take upwards of 10 minutes to settle.

While Zhao acknowledged this, stating that “initially [blockchains] did that,” the CEO noted that as Bitcoin and Ethereum have drastically grown in popularity, not only can transaction fees spike, but so can the speed of transfers. CZ noted that with Binance Chain, faster and cheap transactions should be possible yet again, which he sees as the “original inspiration for crypto” and related technologies.

Further touching on this point, the former OkCoin (OkEX) executive, explained that current DEXs, while much more distributed than centralized exchanges, are “either slow or have relatively difficult UIs,” with there being close-to-zero platforms to provide a happy medium for consumers. As such, Zhao is seemingly stating that the creation of the Binance DEX was predicated on the need for a “high capacity chain” and an easy-to-use decentralized platform. CZ explained:

So, we believe that as we improve the latency and the user experience on the DEX, we’re hoping to see liquidity increase on the DEX, hopefully making a [good] contribution to the market.

Putting a spotlight on BNB, which has followed the performance of Bitcoin (BTC) in recent weeks, Zhao noted that his firm is currently “working with many partners on the business side” to implement BNB into their services. One of Binance’s recent notable partnership is with TravelByBit, which allows cryptocurrency users to travel the world through the use of cryptocurrencies. In the end, as alluded to by the member of Binance’s top brass, these partnerships come down to Binance’s goal to create a cryptocurrency ecosystem that is cost- and time-efficient and widely used.

Binance Forges Ahead In Crypto Bear Market

Binance Chain and its decentralized platform aren’t the only ventures that the preeminent crypto startup is embarking on.

Binance Labs, the venture and incubator arm of its namesake, recently made a $3 million investment into Koi Trading. San Francisco-based Koi Trading, for those who aren’t aware, is an emerging platform that acts as an OTC desk, specializing in the facilitation of non-retail investor-issued crypto exchange orders.

Title Image Courtesy of sydney Rae on Unsplash

The post Changpeng Zhao Likens Binance Chain To Ethereum, BNB To ETH appeared first on Ethereum World News.

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The Rise of Binance Coin (BNB) & Exchange Driven Tokens

Binance Coin (BNB), Cryptocurrency, Exchanges–As the crypto markets show a slight recovery from yesterday, with Bitcoin climbing above $4000 again to show a tentative trading range, a little talked about coin is leading the pack in 24 hour gains.

Binance Coin (BNB), the fourteenth largest currency by market capitalization, is up 13 percent as of writing, leaving some to wonder if the model of cryptocurrency is shifting away from the once stalwart approach towards transactions. Most investors have become familiar with stablecoins throughout 2018, with the high profile–and often controversial–Tether USDT holding the eighth largest position in terms of market capitalization. Compared to traditional cryptos, such as Bitcoin, Litecoin and XRP, Tether and the cadre of stablecoins offer relative price stability by pegging their value to an external source. In the case of USDT, the value of of one token is backed by that of a single U.S. dollar. Other stablecoins have experimented with gold and other precious metals, but the reliance upon familiar fiat choices has been the more popular route.

Binance Coin (BNB) operates in a similarly alternative sphere of the crypto-verse. Unlike Bitcoin, which was minted with the sole purpose of operating in the open market, BNB is a growing class of exchange-created and exchange-driven tokens. Like many other currencies minted within the last year, Binance Coin operates as an ERC-20 token built on the Ethereum foundation. While BNB can be bought, spent and traded just like any other crypto, it has the added benefit of providing greater utility on its native platform, such as a more popular trading pair than traditional fiat, and being used to pay trading and exchange fees.

In July, outspoken Ethereum founder Vitalik Buterin blasted the current state of cryptocurrency exchanges as being profit-focused as opposed to promoting the principles of decentralization, leading him to utter the now famous phrase,

“I definitely hope centralized exchanges go burn in hell as much as possible.”

In some respects, Buterin is justified in his criticisms of exchanges which have become the focal point for cryptocurrency and crypto-based adoption. Binance is on pace to top $1 billion in profits by the end of the year, with most exchanges reporting similar record revenues despite it being an abysmal year for cryptocurrency investors and the market in general.

However, currencies such as BNB–despite their close association with the conflicting nature of exchanges–are providing a broader glimpse at the function of crypto in the right context. In lieu of widespread and mainstreet adoption, the microcosm of exchange marketplaces show that crypto does hold a fair amount of utility when given a use. The price of BNB is on the rise, good enough to land in the fourteenth position by market capitalization, because of a recognition by customers that they are not only investing in price speculation for the coin, but that it will continue to deliver value on the established platform of Binance.

Other cryptos could find a similar following and benefit just the same as BNB. While most traditional media outlets have focused on the woe of the following prices for cryptocurrency into the final month of the year, industry stalwarts such as Mike Novogratz have pointed out the contradiction in value: that crypto adoption is broadening throughout 2018 despite the falling price. With real use-cases and an incentive to buy and use, transactional coins like Bitcoin will find their footing in the coming years.

The post The Rise of Binance Coin (BNB) & Exchange Driven Tokens appeared first on Ethereum World News.

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Binance CEO Confirms BNB Coin Burn In The Exchange’s Fourth Quarterly Update

Changpang Zhao, the well-known CEO and founder of Binance, has just released Binance’s “Q4 Recap” article, which covers a variety of insider insights on the progress of the platform over the past 3 months.

Binance CEO Confirms $32 Million Coin Burn 

On Sunday, Binance’s CEO announced that the Binance team was preparing for the coin burn that occurs for every one of Binance’s fiscal quarters.

According to the exchange’s whitepaper, every quarter, Binance will use 20% of its profits to buy back Binance Coin at market value and ‘burn’ them, removing said tokens from the overall circulating supply. This process will continue until 50% of all BNB are burned, or approximately 100 million tokens.

But with this most recent announcement in the aforementioned Q4 recap article, Zhao has confirmed the burn, giving more details about the amount of BNB burned and the funds used. The announcement states that Binance will be burning 2.528 million of its in-house token, which is currently valued at approximately $32.7 million USD.

These figures are up from the 2.22 million BNB burned and the $30 million spent on said Binance Coin last quarter, which indicates that Binance’s financials are on the uptrend.

Commenting on the increase from Q1 2018 to Q2 2018, Zhao wrote:

This is the highest number of BNBs we have burned in a quarter so far. This is a result of the strong support from our community, you, and hard work by the team, including our Angels. Thank you so much!

Binance closed off the coin burn announcement stating is currently working on acquiring the BNB and plans to execute the ‘burn’ command within the next two days.

So Why A Coin Burn Instead Of Profit Sharing Or Dividends?

Zhao, or CZ as crypto community members like to call him, clarified why Binance does coin burns instead of profit sharing/dividends, like with an exchange like KuCoin or Coss.io. Zhao wrote:

I also learned a shocking amount of people still don’t understand the concept of “burn”. Simply speaking, if someone destroys 10% of a currency (burn), that achieves the exact financial effect as spreading that 10% proportionally to the other 90% holders (usually called a dividend distribution).

CZ also added that a coin burn requires fewer transactions, and therefore, a lower fee and a close to zero chance that the burn transaction(s) will clog the network a token is built upon. Additionally, Binance’s CEO pointed out that not only does a dividend distribution require more work, it also may be an issue for regulators in “some jurisdictions,” as he cited legal and tax worries.

Binance Sees Successful Quarter 

Over the course of the past three months, Binance has made serious developments to better the platform, including creating and developing a series of new programs and systems that will see the company expand its horizons.

Some of these programs include Binance Charity Foundation, Binance Info (Information on the crypto industry), Binance Research, Binance Academy, Binance fiat-crypto exchanges, SAFU and Binance’s decentralized exchange, fittingly named Binance Chain.

However, despite working hard on other projects, Binance has not ceased its work on improving the main Binance exchange. The update pointed out that there have been 200 upgrades to Binance’s exchange system in the last 90 days, with most of these upgrades happening in the background, and did not interupt trading.

CZ closed off the update seeming to hold high hopes for the future of Binance and the cryptocurrency industry, writing:

There are many exciting things brewing for the next quarter and beyond. I am tempted to make more pre-announcements of announcements, but will hold off until things are done. As always, I thank you for your unwavering support in Binance, and look forward to building a higher freedom economy together.

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Binance Coin Price Analysis: Can BNB/USD Hold This Support?

Binance coin failed to break the $17.50 resistance and declined against the US Dollar. BNB/USD is currently holding a major support area near $13.50.

Key Talking Points

  • Binance Coin price failed to break the $17.50 resistance area and declined sharply against the US Dollar.
  • There is a new connecting bearish trend line in place with resistance at $14.50 on the 2-hours chart of BNB/USD (Data feed via Binance, price calculated by Trading view).
  • The pair must stay above the $13.50 and $13.30 support levels to avoid more losses.

Binance Coin Price Forecast

In the last analysis, we discussed an important resistance near $17.50 in Binance coin price against the US Dollar. The BNB/USD pair attempted an upside break above $17.50, but buyers failed to gain momentum.

Looking at the chart, the price was clearly rejected from the $17.50 barrier. As a result, there was a sharp bearish reaction and the price tumbled below the $16.00 and $15.00 resistance levels.

Binance Coin Price Analysis BNB

It traded close to the $13.50 support zone and settled below the 100 simple moving average (2-hours). A new low was formed at $13.28 before buyers appeared. BNB price started an upward correction and moved above the 23.6% Fib retracement level of the last decline from the $17.45 high to $13.28 low.

However, there are many hurdles for buyers near the $15.00 level. More importantly, there is a new connecting bearish trend line in place with resistance at $14.50 on the 2-hours chart of BNB/USD.

The pair also faced sellers near the 38.2% Fib retracement level of the last decline from the $17.45 high to $13.28 low at $14.85. Therefore, it seems like the price needs to clear the $14.50 and $15.00 resistance levels to recover further in the near term.

On the downside, the $13.50 and $13.30 support levels hold a lot importance. Should binance coin price fails to hold the $13.50 support, there could be more declines towards the $12.00 level in the near term.

The market data is provided by TradingView.

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Binance Coin Price Analysis: BNB/USD Approaching Crucial Resistance

Binance coin is moving higher and is currently placed nicely above $16.00 against the US Dollar. BNB/USD is approaching a major hurdle near $17.50 where sellers might appear.

Key Talking Points

  • Binance Coin price started a major upside move from the $13.50 support area against the US Dollar.
  • There is a major bullish trend line in place with support at $16.50 on the 2-hours chart of BNB/USD (Data feed via Binance, price calculated by Trading view).
  • The pair may continue to move higher towards a monster resistance area near $17.50.

Binance Coin Price Forecast

There was a solid support base formed near the $13.50 level in Binance coin price against the US Dollar. The BNB/USD pair formed a double bottom pattern around the $13.50 level and started an upside rally.

Looking at the chart, the price gained bullish momentum and broke the $14.00 and $15.00 resistance levels. There was also a close above the $16.00 barrier and the 100 simple moving average (2-hours).

Binance Coin Price Analysis BNB

The price even broke the $16.27 swing high to open the gates for more gains in the near term. At the moment, the price is trading near the 1.236 Fib extension level of the last decline from the $16.27 high to $13.51 low.

However, the BNB price is facing a major barrier on the upside around the $17.50 level. The stated level acted as resistance earlier as well and prevented gains towards $18.00.

Should binance coin buyers succeed in breaking the $17.50 resistance, the next hurdle is around the 1.618 Fib extension level of the last decline from the $16.27 high to $13.51 low at $17.97.

On the flip side, if the price fails to move past the $17.50 resistance level, it could correct lower. There is a major bullish trend line in place with support at $16.50 on the 2-hours chart of BNB/USD.

Overall, binance coin price remains well supported on the downside above $16.00, but an upside break above $17.50 won’t be easy in the near term.

The market data is provided by TradingView.

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Binance Price Analysis: Wedge Consolidation Pattern

Binance has formed lower highs and lower lows, consolidating in a falling wedge pattern and moving closer to the peak of the formation. This suggests that a breakout in either direction could happen soon.

The chart pattern spans 0.00085 to 0.00120 so the resulting rally or drop could be of the same height. Price needs to close below support at 0.00085 to confirm a selloff or above the 0.00090 level to confirm an upside break.

Note that the 100 SMA lines up with the top of the wedge to add to its strength as resistance. This is below the longer-term 200 SMA to indicate that the path of least resistance is to the downside or that a move lower is more likely.

Stochastic is on the move up to signal that buyers have the upper hand, so another test of the top of the wedge could take place. RSI also seems to be heading higher, although it could also be treading sideways. Once both oscillators hit overbought levels and turn lower, selling pressure could pick up.

Binance has been in a weak spot ever since its hack, and understandably so. Investors could keep dumping their holdings until a positive update comes up, but that seems like a long stretch.

Still, the exchange has offered $250,000 bounty for the arrest of the hackers, citing:

“To ensure a safe crypto community, we can’t simply play defense. We need to actively prevent any instances of hacking before they occur, as well as follow through after-the-fact. Even though the hacking attempt against Binance on March 7th was not successful, it was clear it was a large-scale, organized effort. This needs to be addressed.”

Bitcoin is also under some selling pressure, though, as the “Tokyo whale” reportedly has regulatory clearance to liquidate the remaining 166,000 bitcoins from the former Mt. Gox to pay off creditors. This could lead to another wave lower for this particular digital asset, which Binance might take advantage of.