Exchange News

Binance Chain welcomes a Bitcoin-pegged token

Today, one of the largest cryptocurrency exchange by adjusted volume, Binance, has welcomed a Bitcoin-pegged token (BTCB). The token will be the first to be backed by Binance chain.

The Bitcoin-pegged token will be created using the BEP2 standard and will be developed by the Binance Chain team. The token Binance chain will introduce, will be pegged to Bitcoin with other tokens being fully supported by currencies stored in Binance DEX.

The addresses where the reserved currency is stored will be available to anyone to have access. But, the Binance team says that it will be much easier to do than to check the USD balances of Tether Ltd, hence avoiding any controversies.

Like the other pegged coins, BTC will be paired to the new coin. The pegged coins will be placed in pairs against their native coins the first one to be pegged will be BTCB/BTC.  On Binance’s main platform, BTCBs will be available for trading via a BTCB/BTC trading pair.

To further raise the utility value of Binance DEX, the firm stated:

“With the increase in the selection of tokens available on Binance DEX, there should be an increase in trading volume and liquidity.”

For the Binance DEX to increase its utility value, the exchange team informed its community that the big purchase orders will be conducted on Binance.com. About 0.1 percent will be the price spread.

To ensure that the coin is always fully backed, the Binance Chain team promises the amount of the reserve currency on the wallet will always exceed the amount of pegged currency issued.

Binance plan in launching these crypto-pegged coins is to ensure that the traders are offered a wide range of assets that they cannot find in other exchanges hence increasing the utility value of Binance DEX.

Do you think Bitcoin-pegged token will help increase the utility value of Binance DEX?

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coinmag

Philip is an experienced blogger keen on staying updated with trends and news surrounding the blockchain and Bitcoin space. With several years of freelance experience in various industries, Philip brings his knowledge and experience into the crypto space.

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