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Report: Binance To Offer Margin Crypto Trading, Despite Regulation

Binance To Offer Crypto Trading On Margin

When the now-popular crypto exchange Binance unveiled its whitepaper in 2017, it promised its angel investors a stellar platform that would support much under the Bitcoin sun. Although the startup has delivered on much of its original promises, Binance’s whitepaper mentioned “margin trading” as a part of its “feature rollout.” But, as you know, leverage is unavailable. Moreover, the firm has kept its mouth mostly shut on the matter.

Yet, a recent exclusive from The Block claims that the renowned trading platform is on the verge of giving its millions of users access to margin. The outlet claims that such an offering, purportedly in the works, will require users to stake BNB.

Code found by a pseudonymous programmer would confirm the rumors that the Malta-registered exchange is looking into margin trading.

The user, going by the moniker “enriquejr99,” noted that Binance has “silently included” two booleans that are as follows: isSpotTradingAllowed and isMarginTradingAllowed. These two lines of code were first spotted in Binance’s Ethereum-Bitcoin pair.

Enrique added that upon further analysis of Binance’s 482 crypto trading pairs, he discovered that margin was mentioned, but is currently disabled.

It isn’t clear when the booleans were added, but the exchange’s recent multi-hour downtime could be when Binance’s developers quietly added that in, as the company could very well be readying up to give its millions of users access to leverage. The details of this purported project are, of course, scant. But initial margin support for popular crypto assets, such as Bitcoin and Ethereum, would make sense.

Not So Fast?

Although the evidence seems undeniable, Changpeng “CZ” Zhao, the chief executive of Binance, has questioned the hearsay. In an interview with CryptoSlate’s Joseph Young, Zhao explained that the code seen above is part of his company’s attempts to “future proof” their “API framework as part of our system upgrades.” This would confirm the sentiment that the booleans were added during the exchange’s recent down time, but Zhao added that he can give “no dates” on the release of margin.

Even if CZ is prepping for the launch of this feature, The Block’s sources are wary that this could spell regulatory trouble for the exchange, which has already been booted from Japan and Hong Kong.

Sources explained that margin with cryptocurrencies specifically could be an issue with governmental entities, as Bitcoin’s inherently unregulated nature allows for price manipulation not only on the blockchain layer but with exchanges too. One explained:

“Any trading activity that is confusing, insufficiently explained or hyper-predatory is bound to leave unhappy customers, who may complain to regulators.”

This all implies that it may be in Binance’s favor to deter the launch of margin, rather than to delve into such a subsector without weighing the risks.

Photo by Mark Finn on Unsplash

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New Report Warns 87 Percent of Cryptocurrency Exchange Volume Is Potentially Suspicious

A reports from trading analytics platform The Tie shows that the majority of exchanges may be faking their exchange volume.

Almost 90 percent of cryptocurrency exchanges’ reported trade volumes may be incorrect, new research from trading analytics platform The Tie warned in a digest released on March 18.

Reporting on figures gathered from 97 exchanges, researchers found that the vast majority of the volume claimed to come from users may not in fact exist.

The revelations came as a result of calculations of lesser-known exchanges versus well-known businesses such as Binance and Kraken.

“In total we estimated that 87% of exchanges reported trading volume was potentially suspicious and that 75% of exchanges had some form of suspicious activity occurring on them,” The Tie wrote in social media comments on the findings. The organization added:

“If each exchange averaged the volume per visit of CoinbasePro, Gemini, Poloniex, Binance, and Kraken, we would expect the real trading volume among the largest 100 exchanges to equal $2.1 (billion) per day. Currently that number is being reported as $15.9 (billion).”

Exchanges have often fielded accusations of volume misreporting: a similar reported issued in March 2018 warned of similar problems with data from exchanges.

Then, as now, Binance CEO Changpeng Zhao (CZ) took industry participants to task, arguing listing resources such as CoinMarketCap added to the confusion.

“Why do exchanges fake volumes?” he queried on Twitter following The Tie’s report. CZ also wrote:

“(CoinMarketCap) is [the] highest traffic website in our space, and [the] biggest referrer for all exchanges. Ranked high on CMC has benefits for getting new users. BUT at the expense of DESTROYING CREDIBILITY with pro users.”

Zhang repeated similar claims about CoinMarketCap which appeared in December, focusing on the the top 25 Bitcoin (BTC) trading pairs.

Last month, meanwhile, Cointelegraph reported on how overall exchange volumes had dropped to their lowest levels since May 2017.

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Here is What is Driving Binance Coin (BNB) in the Crypto Markets

Moment ago, Binance Coin (BNB) achieved an all time high (ATH) against Bitcoin (BTC) in the crypto markets. The new ATH of BNB is valued at 0.0036626 BTC. Further looking at the USD value, BNB peaked at a recent high of $13.75 and currently up 20% in 24 hours. Investors who had bought the dip on December 15th last year when BNB was at $4.50, are now in the range of 200% in profits.

BNB’s recent ATH. Source, Binance.com

Reasons Why BNB is Ahead of the Rest

Back in late November of last year, Ethereum World News briefly touched on the following fundamental factors that would lead to BNB gaining in the markets in 2019. A few more have been added to the list due to recent developments

  • CZ becoming one of the most interactive Crypto Exchange CEOs
  • Discounts on the exchange apply when using BNB to pay for trading fees. 50% during the first year of operation; 25% during the second (current discount); 12.5% during the third; 6.25% during the fourth; and zero discounts after that
  • BNB being used to support and investing in new projects on the Binance Launchpad. BitTorrent and Fetch have been successful with each selling out in under 30 seconds
  • Incentives for users to hold more BNB such as increment in referral bonuses with more BNB held
  • Use case (adoption) of BNB to pay for goods and services
  • The Secure Assets Funds for Users (SAFU) to cushion clients from glitches at the exchange that might cause financial damage
  • Launch of the Binance DEX testnet and a simulated trading competition with $100,000 in prizes that starts on the 7th of this month
  • Creation of the Binance Chain that will allow BNB to migrate from an ERC20 token to the new blockchain
  • The active Blockchain Charity Foundation which aims at making the process of giving more transparent
  • Quarterly token burn to reduce the total supply to 100 Million BNB from the 200 Million distributed after the 2017 Binance ICO

Recent AMA by CZ

Further expanding on the first point in the above list, Changpeng Zhao held his second livestream on Periscope and Twitter earlier today. In the livestream, he answered a lot of questions from fans and investors. Most of the questions centered on the future plans at the exchange to which a summary of CZ’s responses can be found below.

  • Promises of regular AMA (Ask me Anything) sessions with users of the exchange
  • Delisting of tokens is necessary to uphold standards on the exchange
  • The success of the Binance launchpad is due to good projects. The platform allows them to raise money and awareness through Binance. Token sales selling out quickly means there is demand
  • Binance team continually building despite the bear market
  • High community engagement by CZ, the Binance team and Binance angels (volunteers)
  • One day response to 99% of customer trouble tickets on the exchange
  • BNB becoming the number one ERC20 token outside prominent stablecoins
  • 8 confirmed ERC20 tokens will migrate to the Binance Chain once the Mainnet is launched and more are interested in switching. All projects will become automatic Binance partners thus utilizing all marketing capabilities of the exchange
  • Ease at which founders can create tokens on the Binance Chain platform
  • Advancements of the Trust Wallet that will also automatically support all tokens launched on the Binance Chain
  • The decentralized nature of the Binance community that spans across the globe

The full video of the livestream by Changpeng Zhao can be found in the following tweet.

What are your long term predictions on the value of Binance Coin (BNB)? Please let us know in the comment section below. 

[Feature image courtesy of Unsplash.com]

Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of Ethereum World News or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.

The post Here is What is Driving Binance Coin (BNB) in the Crypto Markets appeared first on Ethereum World News.

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Binance Announces New Token Sale on its Launchpad, Individual Cap set at $1,500

Investors who enjoyed or missed out on the BitTorrent (BTT) and Fetch (FET) token sales on the Binance Launchpad have constantly asked Changpeng Zhao on when the next token sale will be. One such Twitter user expressed how they will be ready for the next token sale despite missing out on the first two of this year. His tweet can be found below.

Upcoming Celer Network (CELR) Token Sale on Binance Launchpad

It is with the success of BTT and FET token sales that the team at Binance have announced their third token sale of the year on the Binance Launchpad. The new project, known as Celer Network (CELR), will have its token sale on the 19th of March at 2pm (UTC). The token sale will also only accept Binance Coin (BNB). Unlike BitTorrent and Fetch, the Celer Network token sale will have an individual cap of $1,500.

The speculated reason for halving the individual contribution from the $3,000 set for the Fetch token sale, can be that the Binance wants more investors to be included in the crowdfunding event. During the BitTorrent token sale, the individual cap was set at $20,000 and a lot of willing investors were locked out by those who bought the maximum amount. The same case happened during the Fetch token sale.

In the case of the latter, only 2,758 participants were successful out of 19,860 that had managed to place an order on the Binance Launchpad. This figure is 13.88% of willing participants. Perhaps with the new individual cap set at $1,500, the number of successful investors can be double to approximately 5,000 and even more.

More on the CELR Token Sale

The team at Binance gave the following additional information about the CELR token sale.

  • Launchpad Session Time: 2019/03/19 2:00 PM (UTC) to 2019/03/24 2:00 PM (UTC)
  • Token Name: Celer Token (CELR)
  • Total Token Supply: 10,000,000,000 CELR
  • Total Tokens Allocated to Binance Launchpad: 597,014,925 CELR
  • Public Token Sale Price: 1 CELR = 0.0067 USD (Prices in BNB will be set on the day of the sale)
  • Token Sale Format: First come first served basis
  • Individual Cap: 1,500 USD Equivalent
  • Supported Sessions: BNB only
  • Hard cap: $4 Million

About the Celer Network (CELR)

Founded by a team of four PhDs from MIT, Princeton, UC Berkley and UIUC, the Celer Netowork (CELR) enables everyone to quickly build, operate and use highly scalable decentralized applications. High throughput is achieved by offering off-chain scaling techniques and incentive-aligned cryptoeconomics mechanism design. The layer 2 solution by Celer has zero off-chain smart contract transaction fees and has already achieved 10,000x transaction latency reduction. More on this can be found on the project’s website.

What are your thoughts on the new Celer Network token sale on the Binance Launchpad? Will the new cap of $1,500 ensure more investors participate? Please let us know in the comment section below. 

[Feature image courtesy of Unsplash.com]

Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of Ethereum World News or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.

The post Binance Announces New Token Sale on its Launchpad, Individual Cap set at $1,500 appeared first on Ethereum World News.

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10,000 BNB Up for Grabs in the Binance DEX Simulated Trading Competition

To stimulate awareness about the inner workings of the recently launched Binance DEX, the team at the exchange have decided to sponsor a simulated trading competition on the live Testnet. All users who hold at least one BNB on the regular Binance.com are eligible to participate and can register a maximum of 20 Binance Chain addresses. All who qualify will also receive 200 virtual testnet BNB tokens allocated to each address. These tokens will be used before the trading competition begins.

Binance CEO, Changpeng Zhao, also tweeted about the competition and encouraged traders to participate.

To test the hell out of @Binance_DEX, we are giving away roughly $100,000 USD equivalent, in REAL $BNB, as reward for our testnet trading competition. You have nothing to lose! Come and join the fun, and help us launch the mainnet faster!

Competition Period

The simulated trading competition will run from the 7th of March (8am UTC) till the 21st of the same month (8am UTC). All data on the Binance Chain testnet will be reset right before the competition begins. All existing balances will be cleared to pave way for the competition to begin.

Ability to Issue and List Tokens During the Simulated Trading Period

Crypto enthusiasts will be able to issue and list tokens on the Binance Chain testnet during the competition period. Addresses that own tokens will be ranked in terms of the sum of each token price’s volatility over every five minute interval and traded against BNB. The initial price of each token must be set to 1 BNB and there is no limit to the total supply of each. The top three traders will be awarded as follows.

  • 1st – 3,000 BNB
  • 2nd – 2,000 BNB
  • 3rd – 1,000 BNB

Have you tested the new Binance DEX on the Binance Chain testnet? Please share your experience in the comment section below. 

[Feature image courtesy of Binance]

Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of Ethereum World News or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.

The post 10,000 BNB Up for Grabs in the Binance DEX Simulated Trading Competition appeared first on Ethereum World News.

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Binance CEO Confirms XRP Will Be Added As A Base Pair

Binance To Support XRP As A Base Pair

Over the past weeks, specifically over the past few days, the community surrounding XRP, the second-most valuable cryptocurrency by market capitalization, has rallied to its side, asking Binance, the world’s foremost exchange, to list the asset as a base pair.

One user, who goes by the moniker “IzombieXRP,” asked Changpeng “CZ” Zhao, the aforementioned exchange’s fervent chief executive, to list XRP as a base pair as a seeming present to the crypto community. In response to the quip, which gained boatloads of traction, CZ, being a good sport and all, responded by writing “[be] careful what you wish for,” ending his cryptic message with a cheeky smiley face.

As reported by Ethereum World News previously, at the time, this short, innocuous message was seen as a hint that the startup would list XRP as a base pair, a request that has likely plagued the inbox of Binance staffers for months, if not a year.

And now, just a few days later, Zhao, likely feeling the holiday season hit his nerves, revealed that his brainchild — Binance — will be adding the aforementioned asset as a “quote (base) shortly.” It wasn’t explained which pairs would support the new base pair, but it can be assumed that leading cryptocurrencies will be matched with XRP.

As Binance’s UI is reportedly running out of space, Ether pairs will be renamed to “ALTS,” likely to reduce confusion for users on the exchange.

This Is Not A Drill

When CZ issued the tweet, the crypto community at large had a self-contained riot of sorts, with XRP proponents and Bitcoiners speaking on the matter in a state of confusion, disarray, and disbelief. Eric Thies, a prominent crypto advocate, joked that “in before #thestandard army RT’s this around the globe 10 million times,” accentuating the fact that he isn’t the biggest fan of the asset.

John Dean, seemingly confused by this happenstance, asked Zhao if this was an early April fools joke. The Binance chief responded by stating that it would be distasteful for him to “post false messages as jokes,” even on a day like April 1st.

The community surrounding the XRP project went into a bullish clamor, with one Steven Diep noting that “this news is bigger than the asset being listed on Coinbase.” Dr. T, a well-followed Ripple lover, thanked Zhao for adding the aforementioned asset as a base, lauding Binance for its monumental rise to prominence. The pro-Binance sentiment was echoed by much of the XRP community, as they seem to be now enamored with Binance

As this news broke, XRP began to surge, finding legs as Zhao made the aforementioned announcement. At the time of writing, Ripple’s go-to asset is currently valued at $0.44 a pop, moving 11.5% higher on the back of the Binance news alone. Considering the hegemony that Binance has established over this nascent market, many optimists are convinced that the digital asset will head in the short to medium-term.

Ripple's XRP Website Title Image Courtesy of Marco Verch Via Unsplash

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Binance Continues to BUIDL as the Platform’s Mobile Trading App Now Has Price Alerts

The CEO of Binance, Changpeng Zhao, has always encouraged crypto enthusiasts and developers to continue building on the blockchain rather than concentrating on the price of Bitcoin (BTC). His words have become more relevant especially with the current bear market that has seen the crypto markets continue to decline with many crypto traders wondering when the infamous BTC bottom will be reached.

Binance Upgrades Its Mobile Trading App to Include Price Alerts

For the avid Binance trader who likes to be up to date with the prices of their favorite cryptocurrencies, the team at the exchange has recently released a new upgrade to its mobile trading app that now has price alerts.

The new feature is located at the bottom left corner of the charting page of each trading pair. It allows users to set alerts for specific trading pairs that the user wishes to receive notifications. Once the set value or price of the coin is reached, the mobile app notifies the user who then decides on whether to buy or sell the digital asset.

Next to the price alert feature, is a currency conversion tab that allows users from across the globe to view the value of their favorite cryptocurrencies in the following regular fiat currencies:

  • Korean Won (KRW)
  • Japanese Yen (JPY)
  • Euro (EUR)
  • British Pund(GBP)
  • United States Dollar (USD)
  • Russian Ruble (RUB)
  • Chinese Yuan (CNY)

A screenshot highlighting the new features on the Binance trading app has been provided below for a better visualization.

Binance Continually Requesting Feedback from Users

The new feature might have been as a result of the voluntary surveys the exchange requests its users to fill out in an effort to further make the platform better. Binance has been long known to always listen its clients/users and their suggestions.

Anticipated Binance Chain and Decentralized Exchange 

The team at Binance has also been busy building the Binance Chain that will allow BNB to migrate onto its own blockchain. This in turn means that the new platform will have an avenue for token creation for crowdfunding efforts (ICOs). The DEX is also under development and will use BNB asa means of paying trading fees.

Plans for both the DEX and Binance Chain were made public by the exchange back in March this year. The team reconfirmed their building efforts in a December 4th tweet that can be found below.

What are your thoughts on the new price alert feature on the mobile trading app by Binance? Is it a useful tool to have? Please let us know in the comment section below.

Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of Ethereum World News or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.

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