Binance Moves 9,001 BTC As Crypto Exchange Prepares to Launch Bitcoin-Backed Cryptocurrency
Binance just moved 9,001 Bitcoin (BTC) worth about $82 million to a new, unknown wallet.
The Bitcoin will be used to back a new token on Binance Chain that’s pegged 1:1 with BTC. The token, called BTCB, is designed to give traders a way to essentially buy and sell Bitcoin on Binance’s decentralized exchange.
“The main benefit of offering crypto-pegged tokens is that, obviously, this makes available to Binance DEX traders the many coins that have their own blockchains and aren’t native on Binance Chain. With the increase in the selection of tokens available on Binance DEX, there should be an increase in trading volume and liquidity, This would further increase the utility value of Binance DEX.
While this approach is more centralized than atomic swaps, we believe it provides a higher degree of ease-of-use to most traders. And most traders are already trusting Binance.com to hold their funds anyway. Compared to fiat tethering, crypto can provide a high degree of transparency so that anyone can audit the reserves publicly, any time they want.”
There will be a transfer of 9001 BTC soon, no need to FUD. It's for a good thing, details to follow. Waiting for whale_alert.
— CZ Binance (@cz_binance) June 17, 2019
🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 9,001 #BTC (82,910,046 USD) transferred from #Binance to unknown wallet
— Whale Alert (@whale_alert) June 17, 2019
The company says it will be easy to confirm BTCB is fully backed by Bitcoin in reserve, which traders can track at this public address.
“Pegged tokens such as BTCB, are 100% backed by the native coin in reserve, which is Bitcoin (BTC) in BTCB’s case. The reserve addresses are published for anyone to audit. The blockchain offers a much easier way to audit a crypto reserve than a traditional bank balance tether.”
Binance says it’s just getting started and will create multiple crypto-pegged tokens on Binance chain in the coming days.
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