THELOGICALINDIAN - Its not as crazy as it sounds
Binance announced a new asset-backed badge aftermost week. Known as BTCB, it is backed by a assets armamentarium of Bitcoin (BTC) and will accredit users to barter the coin’s amount on the Binance ecosystem.
Seems hardly crazy right? Maybe not. BTCB will be acclimated for trading pairs on Binance’s decentralized exchange. The capital address of Binance DEX is its adeptness to handle trades actual efficiently, but there is a above barrier block. Binance Chain, which admiral the DEX, can alone handle tokens that accede with Binance’s BEP-2 standard.
This agency that Binance DEX can handle accessory cryptocurrencies that accommodate to BEP-2, but it can’t handle added accustomed cryptocurrencies, like Bitcoin.
Binance’s BTCB badge bridges this gap: users can barter BTCB for added tokens on Binance DEX, again bandy BTCB for approved Bitcoin on Binance’s capital exchange. In added words, BTCB will accord DEX users a far greater ambit of trading options.
Furthermore, BTCB is aloof one of abounding crypto-pegged tokens that Binance intends to acquaint in the future, forth with fiat-pegged stablecoins. These new offerings beggarly that Binance DEX users may accept alike added trading options actual soon.
Binance’s new BTCB badge is not a acting for Binance Coin (BNB). Binance Coin is acclimated in trading pairs on the capital Binance website, and it can be acclimated to pay for some in-exchange services.
By contrast, BTCB is carefully acclimated for trading pairs on Binance DEX. By application BTCB, Binance believes, will acquaint a greater alternative of trading options and its DEX will see college trading volumes and added liquidity.
Has It Been Done Before?
Several added companies accept additionally alien agnate Bitcoin-backed cryptocurrencies. BitGo launched Wrapped Bitcoin, or W-BTC, which brings Bitcoin-pegged tokens to Ethereum (ETH); Blockstream created Liquid Bitcoin, or L-BTC, which is allotment of the Liquid Network.
Binance’s Bitcoin-pegged badge will be handled anon by its users. Since Binance is one of the better crypto exchanges in existence, BTCB could actual able-bodied end-up in aerial demand.
Although Binance DEX is not about as alive as Binance itself, it is still actual popular: it currently has a circadian trading aggregate of about $10 to 15 million. Binance has backed BTCB with 9001 BTC (~$100 million), abundant to accommodated antecedent user demand.
Binance’s U.S. Presence
Binance’s advertisement coincides with the account that the aggregation will activate blocking American users from its capital exchange. Instead, American investors will await on a new accomplice barter operated by BAM Trading Services, which will absolutely accede with U.S. regulations.
It is still alien which tokens will be accessible on the U.S. adaptation of Binance, and it’s accessible Binance Coin and BTCB will not be amid the American exchange’s offerings.
However, there is addition acumen to be optimistic: adverse to accepted belief, American investors are still able to admission Binance DEX. Although American users accept been blocked from Binance.org, they can still admission the DEX through wallets that abutment it and through VPNs.
Since the account of BTCB rests heavily on Binance DEX, continuing to acquiesce American investors admission to the DEX in this way could be actual important—even if the aisle to Binance’s DEX is somewhat byzantine.
