Following rapid growth from its inception with revenue surging from nothing to $200M in Q4, Binance has become a force to be reckoned with as far as cryptocurrency exchanges are concerned. Over the past couple weeks, Binance has been topping headlines and have been put under the spotlight by the public eye. For good reason, too: Binance thwarted a hacking attempt, leaving the attackers empty handed and protecting their user base in the process. Immediately following the incident, Binance announced a robust bounty program to deter future hacking attempts.
Binance today capitalized on the positive PR and took the opportunity to announce plans to launch Binance Chain: a decentralized exchange. The move, Binance says is to “disrupt” themselves and create “history” by launching Binance Chain.
According to the statement released by Binance, Binance Chain “will mainly focus on the transfer and trading of blockchain assets, as well as provide new possibilities for the future flow of blockchain assets.” Binance Chain will also focus on performance, liquidity, and ease-of-use.
Binance’s own BNB, which jumped from $8 to $11 per coin as a result of the news, will be upgraded to exist on its own blockchain mainnet, “becoming a native coin,” Binance said.
While details are scarce about the launch timing of Binance Chain, on Twitter, Binance CEO Changpend Zhao promised more news “in the next couple days.” He also further explained via Twitter that “Binance was growing too quickly, and too busy to start anything else. So, all we could do is, to just start one more Binance.”
Binance says that the move will “transition from being a company to a community.”
Decentralized exchanges offer safety benefits over traditional exchanges, as they are less susceptible to large-scale attacks that result in customer’s losing funds by eliminating a single point of failure. Customers also own their private keys on decentralized exchanges. Decentralized exchanges, however, are not entirely immune. Given Binance’s recent stance against hackers, preventing further attacks is likely a motivating factor in Binance’s decision to open a decentralized exchange.
[Image Credit: @changpengzhao Instagram]