As per few crypto Insiders, Binance is all set to become the first decentralized corporation. The investors believe that the company, which runs the largest crypto exchange in the world, will eventually migrate its company’s value to its native cryptocurrency. Binance Coin, reportedly, will be moved from the Ethereum network to Binance’s native blockchain, Binance Chain. In a podcast, Tushar Jain and Kyle Samani, the managing partners of Austin-based crypto hedge fund Multicoin Capital, explain the success of Binance and anticipates the future of the company.
The cryptocurrency has already become the seventh largest in terms of market cap in recent months. Binance is the top-traded exchange for 82% of the top 50 tokens and facilitates 36.6% of global crypto spot trading volumes. The trading volume exceeds the top three crypto exchanges combined. The exchange has been dominating in both volumes as well as the number of token pairs.
The new crypto exchange Binance DEX which was released with the aim of creating an open global financial system is powered by Binance Chain. The new endeavor promises to deliver the best of Binance exchange in a decentralized setting. Binance DEX also features “one-second block times with one-second finality,” which eliminates the waiting time for confirmation.
Jain notes that Binance has launched several crypto-to-fiat exchanges and they have plans for more in order to build out a Binance crypto ecosystem. He says that Binance’s DEX and Binance Launchpad are a crucial component of the ecosystem. Such an ecosystem hopes to remove centralized mechanisms, bureaucratic bloat, corporate malfeasance, hidden accounting and, in the case of banking, systemic abuses that allow traditional corporations to control the world of finance.
“They are encouraging people to move over to Binance Chain by actually offering lower fees on the decentralized exchange than the centralized one. Coupled with just overall trade execution, we expect that Binance will solve the cold-start problem that has really plagued most decentralized exchanges historically,” notes Samani.
“Besides, they are also supporting hardware wallets. They have also already seen implementations of Binance Chain through Trust Wallet. And so I think that they will have much better tooling already available to attract volume to their decentralized exchange,” adds Jain.
“The Binance token is an interesting hybrid of many different use cases. The first use case is that of a discount token in that if you pay your trading fees on Binance … you get a discounted rate. Also… it is also a staking token – and in multiple ways. First, users who hold a significant amount of BNB get discounted fees on the centralized exchange…. Also, if you hold a significant amount of BNB, your referral fees from actually sending out your referral code to invite new users to the Binance exchange are doubled, and so that provides an additional incentive. And last, one of the most important pure utility aspects of the BNB token is staking BNB tokens as a validator on Binance Chain, in being able to earn a percentage of all fees that are paid on the Binance Chain. And I think that’s extraordinarily valuable,” said Jain explaining their cravings for the cryptocurrency.