Binance – What I hate, love and fear about the cryptocurrency exchange

0
60

Binance started as a crypto exchange in 2017. Today she is probably the biggest player in the $ 2.6 trillion crypto industry. The Binance ecosystem includes multiple crypto exchanges, multiple cryptocurrencies (Binance Coin (BNB), Binance USD (BUSD), Bitcoin BEP2 (BTCB)), the Trust Wallet and its TWT token, a token launchpad, and more.

1. What I love about Binance

Binance operates two parallel blockchains:

  • The Binance Chain (BC) with high transaction capacity
  • Binance Smart Chain (BSC), which has smart contract functionality and implements the Ethereum Virtual Machine (EVM)

BSC gained massively in importance in 2021 mainly due to the slow speeds and high costs of Ethereum. Creating tokens on BSC is easy and inexpensive. But there’s a caveat here – validation is done by a small number of validators, so it’s pretty centralized.

I also love the Binance cryptos, especially BNB and BUSD.

Binance Coin (BNB) was issued by Binance as part of the Initial Coin Offering (ICO). Its first use case was discounted trading fees on the Binance exchange. Did you know that 90 percent of Binance employees earn part of their income in BNB?

BNB is the third largest cryptocurrency with a market capitalization of over $ 82 billion (about $ 6,14,414) and a daily trading volume of over $ 2.6 billion (about $ 19,481).

BUSD is a US dollar-backed stablecoin jointly issued by Binance and Paxos. The BUSD is one of the few stablecoins approved by the New York State Department of Financial Services (NYDFS).

I’m also a fan of Trust Wallet, a popular mobile wallet that supports 53 blockchains and over a million digital assets. It was acquired by Binance in 2018.

2. What I hate about Binance

Binance has three crypto exchanges:

  • Binance.com – the original and largest crypto exchange by volume.
  • Binance.us – which was created after Binance was banned in the US in 2019 for regulatory reasons.
  • Binance DEX, a decentralized exchange based on Binance Chain.

Lately, I hate the Binance.com crypto exchange for its glitches and failures.

In fact, a group of derivatives traders are suing Binance for trading losses caused by platform failures. This case could set a global precedent for the liability of exchanges.

A few days ago, Bitcoin prices on Binance’s US exchange suddenly plummeted 87 percent – from $ 65,000 to $ 8,200.

3. What I fear about Binance

Binance is facing legal issues around the world – Canada, Cayman Islands, Italy, Japan, Malaysia, Singapore, South Africa, Thailand, the UK and the US.

It’s not just regulatory issues. Hundreds of investors are expected to take part in lawsuits against Binance seeking compensation for money they lost during a major outage.

Binance says it doesn’t have an official headquarters. This has made it difficult for investors to find out how and where to take the company to court. Swiss private equity firm Liti Capital has pledged to provide at least $ 5 million for the case.

Binance is probably the most important part of the crypto ecosystem and its legal issues could have a massive negative impact on crypto prices.

Rohas Nagpal is the author of the Future Money Playbook and Chief Blockchain Architect at the Wrapped Asset Project. He’s also an amateur boxer and a retired hacker. You can follow him on LinkedIn.

Interested in cryptocurrency? We discuss everything about crypto with WazirX CEO Nischal Shetty and WeekendInvesting founder Alok Jain on Orbital, the Gadgets 360 podcast. Orbital is available on Apple Podcasts, Google Podcasts, Spotify, Amazon Music, and anywhere you get your podcasts.

Cryptocurrency is an unregulated digital currency, not legal tender and is subject to market risks. The information provided in this article is not intended or constituted as financial advice, commercial advice, or any other advice or recommendation of any kind offered or endorsed by NDTV. NDTV shall not be liable for any loss arising from any investment based on perceived recommendations, Forecasts or other information contained in the article.

LEAVE A REPLY

Please enter your comment!
Please enter your name here