Binance started as a crypto exchange in 2017. Today, it is probably the biggest player in the $2.6 trillion crypto industry. The Binance ecosystem includes multiple crypto exchanges, multiple cryptocurrencies (Binance Coin (BNB), Binance USD (BUSD), Bitcoin BEP2 (BTCB)), Trust Wallet and its TWT token, a token launchpad, and more.
1. What I like about Binance
Binance operates two blockchains that run in parallel:
- High Transaction Capacity Binance Chain (BC)
- Binance Smart Chain (BSC) which has smart contract functionality and implements Ethereum Virtual Machine (EVM).
BSC has gained traction in 2021 largely due to Ethereum’s slow pace and high costs. Creating tokens on BSC is simple and cheap. But there is a caveat here – the verification is done by a small number of validators and this makes it quite centralized.
I also love Binance crypto, especially BNB and BUSD.
Binance Coin (BNB) was issued as part of Binance’s Initial Coin Offering (ICO). Its first use case was the waiver of trading fees on the Binance exchange. Did you know that 90 percent of Binance employees earn a portion of their income in BNB?
BNB is the third largest cryptocurrency with a market capitalization of over $82 billion (approximately Rs 6,14,414 crore) and a daily trading volume of over $2.6 billion (approximately Rs 19,481 crore).
BUSD is a USD-backed stablecoin jointly issued by Binance and Paxos. BUSD New York State Department of Financial Services[NYDFS]It is one of the few stable currencies approved by
I am also a fan of Trust Wallet, a popular mobile wallet that supports 53 blockchains and over a million digital assets. It was acquired by Binance in 2018.
2. What I Hate About Binance
Binance has three crypto exchanges:
- Binance.com – The original and largest crypto exchange by volume.
- Binance.us – which was created in 2019 after Binance was banned in the US on regulatory grounds.
- Binance DEX, a decentralized exchange built on the Binance Chain.
Lately, I have come to hate the Binance.com crypto exchange due to its flaws and faults.
In fact, a group of Derivatives traders are suing Binance For trading losses caused by the closure of the platform. The case could set a global precedent on the liability of exchanges.
A few days ago, bitcoin prices on Binance’s US exchange suddenly dropped 87 percent — from $65,000 to $8,200.
3. What scares me about Binance
It’s not just a problem with regulators. Hundreds of investors are expected to participate in proceedings against Binance, seeking damages for the funds they lost during a major outage.
Binance says it has no official headquarters. This has made it difficult for investors to figure out how and where to take the company to court. Swiss private equity firm Litti Capital has pledged at least $5 million in funding for the case.
Binance is probably the most important part of the crypto ecosystem and its legal problems can have a massive negative impact on crypto prices.
Rohas Nagpal is the author of the Future Money Playbook and Chief Blockchain Architect of the Wrapped Asset Project. He is also an amateur boxer and a retired hacker. you can follow him on linkedin.
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