Binance launching Bitcoin-pegged token on Binance Chain, other coins to follow 🚨 This article is 5 years old...
Binance launching Bitcoin-pegged token on Binance Chain, other coins to follow
2 min read
Updated: Feb. 10, 2021 at 8:46 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Binance announced the launch of native Binance Chain BEP2 tokens pegged to top cryptocurrencies “in the coming days,” starting with Bitcoin.
It's over 9000! https://t.co/vauQtRzWeL
— CZ ? Binance (@cz_binance) June 17, 2019
The debut token, Bitcoin-pegged ‘BTCB,’ will list on Binance.com within “a day or so” tradable against BTC, and will also be proposed for listing on Binance DEX, the exchange said Tuesday in a blog post.
The announcement sheds light on a tweet issued Monday by the exchange’s CEO Changpeng Zhao, who forewarned 9,001 BTC was to be transferred out of a Binance hot wallet “for a good thing.”
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
Binance disclosed BTCB’s reserve addresses on both the Binance Chain and Bitcoin blockchains, reflecting the new token’s 9,001 BTC backing ($83 million). This will make BTCB the 84th-largest cryptocurrency by market capitalization upon launch.
Tethered on Blockchain
Binance stated the reserve addresses will be listed for all pegged BEP2 tokens “for anyone to audit” on the blockchain, and that a trade system will ensure “100% backing” at all times. The post explains:
“If this buy order is filled, a new order will be placed while an equal amount of funds will be deposited from the reserve address into Binance.com. The sum of the buy order and the funds on the published reserve address will be bigger than the total supply of the pegged token, ensuring there is always 100% backing.
According to Binance, such an arrangement provides a level of systemic transparency that a fiat-pegged token cannot.
Tether, the company behind the first and largest USD-backed cryptocurrency by market capitalization, has for years grappled with allegations of insolvency over auditing issues—and in February ultimately revealed only 74 percent of its USDT tokens were backed with dollars.
To Binance, which ranks consistently in the top 5 by adjusted volume globally, the pegged tokens will bolster the trading volume, liquidity, and utility of its recently-launched decentralized exchange, which currently ranks 72nd by daily volume.
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Bitcoin
$98,569.62
Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Tether
$1.00098
Launched in 2014, Tether is a blockchain-enabled platform designed to facilitate the use of fiat currencies in a digital manner.
Binance
Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies.
Changpeng Zhao, popularly known as “CZ,” is a notable figure in the cryptocurrency world, primarily for founding and leading Binance, the world’s leading cryptocurrency exchange by trading volume.