Binance, the world’s leading crypto exchange, is expanding its range of services to include trading in Bitcoin options. At the same time Binance announced the acquisition of the data service provider CoinMarketCap. Binance CEO Changpeng Zhao announced additional future plans.
Even if parts of the global economy are at a standstill due to the coronavirus, work in the crypto industry remains very focused. At the beginning of the month, Binance CEO Changpeng Zhao („CZ“) made a whole bunch of announcements in an AMA meeting, some of which are also relevant for you as an investor. We summarize the most important points:
- Binance has recognized the signs of the times and starts testing Bitcoin options. This financial instrument, which is closely related to Bitcoin Futures, has also been offered by Bakkt on the New York Stock Exchange and on the Chicago Stock Exchange for several months. With BTC options, the buyer secures the right to buy BTC at a fixed time at the agreed price, but unlike with Bitcoin Futures, he is not required to actually use the option.
- Binance has launched an OTC portal, where OTC stands for over-the-counter. This offer is particularly interesting for large orders; Binance sets the minimum amount for such deals at $10,000 in Bitcoin and/or 24 other Altcoins. A verified Binance account is also required. The advantage for investors: the trade is executed directly in real time, no waiting periods for the confirmation of a trade can affect the price movement. Further details on OTC at Binance can be found here, the actual portal is online here.
- Binance has acquired CoinMarketCap, the market leader of internet platforms dealing with prices, liquidity and other key figures of the crypto industry. In a blog post, Binance promises that CoinMarketCap can continue its daily business completely independent of Binance. According to CZ, the acquisition has been quiet and harmonious, and Binance expects the acquisition to be valuable. In a few years, CoinMarketCap will be worth 10 or even 100 times more than it is now, the Binance CEO said. How much money was spent on the acquisitions was not disclosed. However, experts estimate the acquisition sum to be 400 million US dollars
- Binance is going into the mining pool business. Binance customers will be able to rent computer capacities for mining from BTC and various Altcoins or even rent out their own ASICS. According to CZ, Binance’s new business division will operate largely independently of the parent company. As for the deal with CoinMarketCap, Changpeng Zhao emphasises the internal arrangements to prevent price manipulation caused by too close integration of the different departments at Binance.
- Binance’s own stablecoin BUSD (Binance USD) is developing into a success story. The market capitalization of BUSD has now exceeded the USD 200 million mark, the last doubling took just 21 days.
- Although there has not been any news of new IEOs at Binance for some time, CZ has been assured: The topic is by no means discontinued, several projects for the launch of new Altcoins are currently being reviewed by Binance. Investors had always done well with Binance IEOs in 2019 and were able to multiply their investment. As soon as new IEOs become official at Binance, you will find all the important information here.
Conclusion: Binance is expanding aggressively, BNB will benefit
Binance has sparked a firework of new projects despite the insecurities, proving that it does not relax upon already earned achievements. When viewed from above, it is sometimes breathtaking how quickly Binance is able to detect new business trends and put them into action. Binance Coin (BNB) also benefits from this momentum.
Since the beginning of the month, its value has risen by a whopping 10 percent, significantly outperforming the price of Bitcoin and Co. BNB remains the easiest way for investors to participate in the success of Binance. However, there is still a risk: If Binance or BNB become the target of regulatory authorities, things can quickly become tight for the entire Binance ecosystem, which sometimes operates in legal grey areas in the global markets.
For Germany, at least, Binance is trying to obtain official approval under the new legal framework, a clear demonstration of how a start-up becomes an established company.