Binance CEO Changpeng Zhao says a number of “large” Ethereum-based ERC20 tokens are planning to leave the Ethereum network and switch to Binance Chain.
According to Zhao, tokens that are strictly currencies and don’t utilize any additional smart contract features on Ethereum will benefit from faster transaction times and cheaper fees on Binance Chain, which is set for launch early this year. In addition, Zhao says it will be easy for developers to launch their tokens onto the company’s upcoming decentralized exchange, which is called Binance DEX.
“If you’re only using ERC20 as a token, there’s no real reason for you to stay on Ethereum. Whereas on Binance Chain, you get one second transaction confirmations. One confirmation is final. So it’s a much faster chain and the transaction fees are cheaper. So there’s a lot of advantages for them to move to Binance Chain, which uses a native DEX…
If you’re using some other feature of the smart contract on Ethereum that’s not token issuance related, then we don’t support that on Binance Chain initially. So then, you’ll probably have to stick with ERC20.”
Zhao also expanded on the company’s plan to launch more fiat-to-crypto exchanges and addressed the overwhelming demand for the company’s new exchange in Jersey, which pairs the British pound and euro with Bitcoin and Ethereum.
“We do want to build five to ten fiat onramps around different parts of the world, hopefully spreading out from different continents. So that’s one of the goals for Binance this year, which is to get the fiat onramps as well. We see that that’s a limiting factor for the industry growth right now. So we want to help the industry grow and the crypto market.
So far, the Jersey market is just overwhelmed with demand. So, that shows there’s pent up demand there. So the way I view it, most of the money is still in fiat… So it’s much larger than the crypto market cap, and we need to get the fiat in.”
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