Binance, one of the largest cryptocurrency exchanges by volume, is issuing a bitcoin-backed token, the firm announced in a blog post on Monday.
Named BTCB, the tokens are reportedly 100% backed by bitcoins held in a reserve address, and will be issued by the exchange’s native blockchain network, Binance Chain.
BTCB’s launch is part of a larger move by the exchange to boost the selection of tokens available for trading on Binance DEX, Binance’s recently-launched decentralized exchange. BTCBs will be available for trading via a BTCB/BTC trading pair on Binance’s main platform, and can then be transferred to Binance DEX for trading.
“With the increase in the selection of tokens available on Binance DEX, there should be an increase in trading volume and liquidity, This would further increase the utility value of Binance DEX,” the firm stated.
Binance was founded and run by the one of the great minds in the crypto space, Changpeng Zhao aka CZ. CZ was originally a coder who built high-frequency trading systems on Wall Street. He eventually moved into the crypto space working for crypto wallet/block explorer service Blockchain.info and serving as CTO for the crypto project OKCoin.
But then CZ lauched Binance in the 2017 and in nine months, Binance became the world’s largest cryptocurrency exchange by trading volume making CZ a billionaire in the process. Because Binance continues to innovate and come out with great products and service, Binance does about $500 million in daily trading volume and owns about 20% of the market.
The chart suggests to wait for a pullback before going long on Binance.
This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.