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 further future plans.
Even if parts of the global economy are at a standstill due to the corona virus, the crypto industry will continue to work in a concentrated manner. Binance, the crypto exchange, is the market leader. 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 now also offers trading in 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 the Chicago Stock Exchange for several months. With BTC options, the buyer secures the right to buy BTC at the agreed price at a fixed time, but unlike with Bitcoin Futures, he is not obliged to actually exercise 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 USD 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 confirmation of a trade can play into the price development. Further details on OTC at Binance can be found here, the actual portal is online here.
- Binance has acquired CoinMarketCap, the market leader among Internet portals 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 from Binance. According to CZ, the takeover was quiet and harmonious, and Binance expects the acquisition to be of value. In a few years, CoinMarketCap will be worth 10 or even 100 times more than it is now, said the head of Binance. 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 BTC and various old coins or even rent out their own ASICS. According to CZ, the new business division of Binance is to operate largely independently of the parent company. As with the deal with CoinMarketCap, Changpeng Zhao emphasises internal measures to rule out price manipulation by dovetailing the various departments at Binance too closely.
- 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. If the numbers are right, BUSD will become the leading stablecoin in the crypto industry.
- Although there has been no news of new IEOs at Binance for some time now, CZ has been assured: The topic is by no means abandoned, several projects for the release of new old coins are currently being examined at Binance. Investors had always done well with Binance IEOs in 2019 and were able to multiply their commitment. As soon as new IEOs at Binance become official, you will find all the important information here.
Conclusion: Binance is expanding aggressively, BNB benefits
Binance has ignited a firework display of new projects despite the uncertainties, proving that it is not resting on its laurels. Seen from the sidelines, it is sometimes breathtaking how quickly Binance is able to identify new trends in business areas and put them into practice. Binance Coin (BNB) also benefits from this dynamism. Since the beginning of the month, its value has risen by a whopping 10 percent, significantly outperforming the price development 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 come into the sights of regulatory authorities, things can quickly become tight for Binance’s entire ecosystem, which sometimes operates in legal grey areas from the global markets. For Germany, at least, Binance is making efforts to obtain official approval under the changed legal framework, a clear demonstration of how a start-up becomes an adult company.