Binance US coming soon; BTCB challenging USDT
Recently, Chinese Media Tuoluo interviewed Binance CMO He-Yi on the Binance’s bitcoin pegged token, DEX, Binance.US and more. Here we highlight some of the most important topics discussed.
1.Besides Bitcoin, will Binance launch other cryptocurrency pegged tokens? (Binance just announced the launch of its BTCB, Binance’s Bitcoin Pegged Token)
It will take time. We also look for feedback and needs of our users to make a decision and determine the timeline.
2. On USDT’s lack transparency
When we are talking about whether it is “secure” to trade BTCB, we are really discussing whether we can redeem the BTCB for BTC. Currently, most of the fiat-based stablecoins are adopting this model in where you can put 1 dollar in the bank, and then issue USDT on-chain. However, you cannot see the bank reserves and transactions every second.
With BTCB, our customers can check anytime on whether the reserves have been shuffled or moved elsewhere. Therefore, you can interpret this is a stablecurrency that is more transparent than the other fiat-based cryptocurrencies. And this approach is also more trackable and secure.
3. Criteria for listing on Binance DEX
Here are several basic requirements for listing tokens on Binance: First, you must have a certain amount of real trading volume, we will not allow fake trading volume. We will make choices based on the publicly available data and our own judgment. The other factor is that the project’s community needs to have a certain amount of scale and activity. This way, we hope that this will drive the project to pay attention to its community, and come trade on the DEX. On the other hand, when we promote DEX liquidity and increase the transaction volume, it will also benefit all BNB holders.
DEX is the ultimate goal for Binance, so this solicitation is also a way we want to contribute to the DEX community through our centralized exchange and encourage its growth and development.
The way you should think about Binance and the Binance DEX are equivalent to China’s main stock exchange and China’s the National Equities Exchange (NEEQ). [This analogy in the US would be equivalent to something like the NYSE and Nasdaq, respectively]
If you do well on the DEX, you can switch to the main exchange. The relationship of the two can build an ecosystem similar to “Taobao” and “Tmall”. (As for context, Tmall spun off of Taobao, a platform for local Chinese and international businesses to sell brand name goods to consumers in mainland China, Hong Kong, Macau and Taiwan. Tmall became the world’s second-biggest e-commerce website after Taobao, it has over 500 million monthly active users, as of February 2018. And both are owned by Alibaba).
4. On Binance US
We spent a lot of time and energy doing due diligence, and finally decided to cooperate with BAM Trading Services.Binance.US will operate in a completely independent manner and fully compliant with US standards to services to US users.
Binance.US is expected to be launched in the very near future. In the past, many public opinions will feel that Binance is not a compliant exchange. But in fact, Binance has the most trading platform licenses, and there will be continuous upcoming announcements in the future.
5. Will Binance enter China?
This depends on whether China’s regulatory authorities will recognize virtual currency trading. China has a very good entrepreneurial environment and has the foundation to become bigger and stronger. If the policy becomes more friendly, we will dedicate money and resources. We also have the confidence to “make the country proud”.
6. On Binance’s leverage product
Leverage trading is now open on the main site. Currently, only 1% of users have access to it. In the next few weeks, it will gradually transition from 1% to 100%. Earlier, some of the users tried out the product and also gave a lot of suggestions. Thanks to the community’s suggestions.
7. On STOs
Fundamentally, STOs are still securities, and are reliant heavily on regulatory attitudes and policies. The regulation of each country is different. The entire industry is still exploring STOs, and we are also taking an attitude of exploration and research around this topic.
8. On Defi strategy
Binance is currently focused on building its layer 1 blockchain and prioritizing optimizing transactions times. With respect to the Binance charity and industry education side, although there is no return on investment, we will continue to persist and support. We are also keeping a close eye on DeFi, and will progress further at the right time.
Additionally, Binance Labs is also conducting field research in various locations. If there are suitable projects, we will no discount the possibility of conducting M&A.