Binance launches BEP2, a bitcoin-pegged token for trading


Binance

Binance is launching a bitcoin-pegged token for trading called BTCB. The token will be released on the native blockchain of Binance or, simply, on Binance Chain. The information comes from a blog post of the exchange.

The token will be made available for trading on the decentralized part of Binance – DEX, as well as on the main exchange. According to the post, Binance plans to roll out several tokens on Binance Chain pegged to leading digital currencies. The first will be the BEP2 token, which is pegged to bitcoin.

The tokens are 100% pegged to bitcoin.

A trading pair will be created on Binance.com between the pegged token and the native coin, e.g., BTCB/BTC. Large buy orders will be maintained on the trading pair on Binance.com, with a price spread of around 0.1%.

The reserves will be easily visible for anyone, as they are recorded on the public blockchain.

Binance also commented on the major benefit of the new crypto-pegged tokens and their place on DEX, saying:

The main benefit of offering crypto-pegged tokens is that, obviously, this makes available to Binance DEX traders the many coins that have their own blockchains and aren’t native on Binance Chain. 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.

However, the disadvantage here is that this approach is not so “decentralized”, but rather, more centralized. But with the “centralized” nuance, traders are provided with “higher degree of ease-of-use” and more transparency to audit the reserves.

Related News

arrow

Binance launches BEP2, a bitcoin-pegged token for trading

1

Send this to a friend