Binance is trying to kill Ethereum. — At least, that is what it looks like.
News is circulated every week concerning a supposed new ‘Ethereum Killer.’ Cardano believes it can takedown Ethereum. Dan Larimer and EOS believe they too can eventually topple Ethereum’s top spot on CoinMarketCap.com. So far, though, no competing coin has proved able to do so. The only question is, can Binance?
Binance is Trying to Kill Ethereum – Here’s How
Ethereum is the second most traded cryptocurrency in the world. However, for the past 6-months, Binance has been quietly removing ETH trading pairs from its exchange. With almost all new coin listings, buying and trading coins is still possible using Bitcoin, Binance Coin, and Tether. ETH trading pairs, though, are becoming increasingly rare.
Why is Binance Attempting to Topple Ethereum?
Binance Coin originally launched as an ERC20 token on the Ethereum blockchain. Up until recently, Binance Coin was also the most valuable ERC20 coin on the Ethereum network. However, April saw Binance Coin successfully migrate to its own blockchain, Binance Chain.
Binance Chain is a Direct Competitor to Ethereum – Kind Of
Binance Chain isn’t just another payments orientated blockchain. Like with Ethereum, it is possible to build D’Apps on Binance Chain. The most widely known of these today is Binance DEX.
Binance DEX is a Binance powered decentralized exchange. By being decentralized, it is possible to use Binance DEX without restriction, regardless of a users geographic location. This is important, as on July 1st, 2019, the regular Binance exchange stopped supporting U.S. users. (This brings the total number of countries where using Binance is prohibited to 29.)
By being decentralized, Binance DEX also allows users to buy and trade ICO coins, even though doing so might be prohibited by local regulators. (As is currently the case with the SEC in the United States.) Some, therefore, consider Binance an Ethereum killer for three simple reasons.
- It is possible to create ICO coins and D’Apps on Binance Chain, just like on Ethereum.
- D’Apps and ICO coins created on Binance Chain can be made available for trading on Binance DEX and the Binance ICO token sale platform, Binance Launchpad.
- Better exposure to traders and investors means that ICOs can (potentially) raise funds more successfully when building and launching on Binance Chain than they can when building and launching on Ethereum.
Overall, it is easy to see why D’App developers and people launching ICO coins would prefer to do so on Binance. All that Binance lacks is the same level of consumer trust as Ethereum.
Binance is Limiting ETH Trading Pairs to Expedite Migration to Binance Chain
Binace DEX and Binance Chain have already begun to attract several top D’App developers. Binance Launchpad is also proof that it makes sense for ICOs to cozy up to Binance. However, Binance seems to now want to forcibly expedite migration of developers and ICOs from Ethereum.
Binance, is one of the world’s best cryptocurrency exchanges. Steadily eliminating ETH trading pairs is, therefore, a sure way to make D’App and ICO developers think twice about building and launching on the ETH ecosystem.
Of course, by attempting to undermine Ethereum in this way, some will doubtless question things like just how decentralized Binace DEX really is. Binance may, therefore, want to think carefully, before plans risk backfiring.
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