Home Market Binance in quest of controlling the entire crypto market?

Binance in quest of controlling the entire crypto market?

Binance, the world’s largest cryptocurrency exchange, has been receiving a lot of attention lately after it announced that it was launching the Binance Chain mainnet and planning to execute a mainnet swap on April 23, 2019. Now the company is incentivizing developers who are building on other blockchains to switch to Binance’s own network. This has raised the eyebrows of Lucas Nuzzi, the Director of Technology Research at Digital Assets Research, who thinks that the move will put a lot of power in the exchange’s hands.

In a Twitter thread, Lucas argues that Binance could try to control the entire ecosystem with the influence that it has gained over the last few years. Just as Binance’s management announced that it was going delist Bitcoin SV (BCHSV) without any consequences, it could now demand projects from rival platforms, such as EOS, TRON and Ethereum, to migrate to Binance Chain as a requirement for them to be listed on the exchange.

With this kind of authority, Mr. Nuzzi believes that:

“Binance [could] become Ethereum’s equivalent to Bitmain; a massive, centralized, self-serving agent that retains a lot of power.”

The former consultant at Thompson Management Horizons claims that since most tokens that have been launched on the Ethereum blockchain lack utility and their main purpose, at this point in time, is being used as a medium-of -exchange, they could benefit from the migration to a blockchain that is associated with an exchange. The shift could set the stage for these tokens to get into the headlines and subsequently receive a pump in their market valuation.  

As speculation around the matter continues to increase, Nuzzi suspects that the world’s largest cryptocurrency exchange could potentially expand its dominance over the cryptosphere, with the surge of Initial Exchange Offerings (IEO). Considering that IEOs are managed by a crypto assets exchange on behalf of the startup that is looking to raise funds and that they take a cut of the tokens sold as well as listing fees, this could allow them to oversee most of the new projects that are being built. Therefore, Binance could try to “control the entire supply chain of tokens.”

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The above is to be considered opinion and not investment advice in any way, as an unbiased media, no one interferes with the Editorial content of CryptoInsider.com, writers have freedom to choose their own direction, members of Crypto Insider do not participate in trades based on content.

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ETH: 0xDf4d2529D777a80717E85Ed2269830ad6265951B
LTC: LMT3LCbCSvActkVo4dgzbHjn1HPrCgKch2
BCH: 17sFsLgZq9jibtqi5Bo5SiUcCD4TG8RQwE

Señor Satoshi
Señor Satoshi
Señor Satoshi began forex trading in 2012 to become financially independent and travel the world while working on his own. In 2014, he came across Bitcoin’s white paper written by Satoshi Nakamoto. He was so fascinated by the idea of a decentralized, borderless, and censorship resistant currency that he started buying Bitcoin at the time. By 2015, with some of the earnings generated in forex trading he started traveling the world spreading the word about Bitcoin everywhere he went. The Bull Market that the cryptocurrency market experienced in 2017 got Señor Satoshi’s attention out of the forex market and since then he’s been dedicated to trading cryptocurrencies.


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