The world’s largest cryptocurrency exchange, Binance, was attacked on May 7, and hackers stole 7,000 Bitcoins [BTC] worth $40 million. The Chief Executive Officer of Binance, Changpeng Zhao or CZ, proactively took care of the situation and shut deposits and withdrawals on the exchange, which were later resumed on May 16.
Even though the funds have not been recovered yet, another scam seems to be brewing in the shadow of these funds. A Reddit user suggested on the r/Cryptocurrency subreddit that the ‘team’ that hacked Binance was selling the stolen 7,000 BTCs, with a 70% discount.
The site claimed to provide 3 BTCs for 20 ETH and 0.2BTC for 2 ETH. This page led users to another page which informed them that the process would be completed after they add their Bitcoin address and ETH sessions.
Most users suggested that this is a scam, warning others to not buy into this scheme. One of the users commented,
As for Binance’s stolen funds, many prominent figures from the crypto-space had offered their services to the exchange to help it in its efforts to trace the funds and retrieve them. John McAfee said, “If I can help at all please let me know. Underneath my clown suit is still one of the most experienced cybersecurity experts on the planet. I’ve been doing it for 51 years. I am at your service.”
Tron’s Justin Sun also pledged to donate USDT worth the stolen BTCs. However, CZ refused his help. Whale Alert, a Twitter handle that keeps an eye on the movement of tokens and coins from various wallets and exchanges, also offered to lend a hand to help Binance out. The Twitter handle tweeted,“ We have added special warnings for the Binance Hack! If anyone tries to move the stolen #BTC, you’ll be the first to know!”
Speed, ease of use are Binance’s primary differentiators, claims CEO Changpeng Zhao
While the mainstream media often highlights the probable impact of non-financial players in the cryptocurrency space, only crypto-enthusiasts notice the decade of work put in by today’s crypto giants. Leading one of the world’s largest crypto-exchanges, Binance, CEO Changpeng Zhao recently featured in a video to share some insights about the company’s roadmap and its contribution to the crypto-ecosystem.
Zhao started the interview by clarifying that Binance is no longer just a crypto-exchange. He added that the company now had a diverse line of businesses, including fiat exchanges, Binance Labs for project investments, Binance Launchpad for public funding and Binance Research for information distribution, to name a few.
Surprisingly, Binance has maintained an organic and dynamic approach towards the addition of businesses into the BNB ecosystem. Instead of paying institutions, Zhao said,
“What we do in return is help them (business withing the BNB ecosystem) market. So I’ll retweet them and will try to help public publicize them. We just got to be reactive in order give the proper support for this ecosystem.”
CZ added that Binance chooses two features as its primary differentiators, speed and ease of use. In his own words,
“Without speed, you don’t get liquidity.
The young entrepreneur stressed on Binance’s vision to give back to the society through various blockchain-based charities. Such efforts on Binance’s part have improved efficiency and transparency, he claimed. CZ added,
“With the transparency increased, there’s more people willing to donate. Today, if you donate 1 BNB, you can track it to see which school it went to Uganda and which kids it helped.”
This can also be used as a measure to counter corruption associated with traditional charities. Binance also leverages its charity drive to increase crypto-adoption by allowing donations through BNB only, ultimately increasing crypto-awareness in new demographics.
Concluding the interview, Zhao shared his excitement about increasing crypto-participation by non-financial giants, stating, “the more the merrier.”
Binance steps up its game by introducing tokens pegged to Bitcoin [BTC]
Binance has been taking prominent steps in terms of expanding its services to customers all around the globe. The exchange made another significant announcement earlier today, the launch of tokens pegged against the largest cryptocurrency, Bitcoin [BTC]. Notably, the tokens will not only be pegged to Bitcoin but also to other leading cryptocurrencies. The details pertaining to the other digital currencies are yet to be announced by the exchange.
The exchange said in a blog post,
“We are launching tokens on Binance Chain that will be pegged to leading cryptocurrencies. This will start with a Bitcoin-pegged token that will be traded on Binance and proposed for trading on Binance DEX”
It further stated,
Binance will issue a number of crypto-pegged tokens on Binance Chain (BEP2 token format) in the coming days, starting with BTCB, a BEP2 token pegged to Bitcoin”
The exchange also assured that these tokens are 100 percent backed by its native cryptocurrency “in reserve”, and that they would also be releasing these addresses to the public if anyone wants to review or audit it. Additionally, this initiative will mainly benefit users of Binance’s decentralized exchange venture, Binance DEX, with the noteworthy plus points being increase in trading volume and liquidity.
The blog post further remarked,
“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.”
This aside, the exchange has already taken its first step towards this initiative as it has minted its first Bitcoin-pegged token, BTCB. The exchange stated that it has reserved 9001 BTC and has minted the equivalent amount of BTCB, which will be listed on the platform in the coming days.
Binance Set to Launch Crypto-pegged BEP2 Trading Pairs and Intends To Increase Liquidity On Its DEX Platform
Based on a recent report, crypto exchange— Binance has made it known that it will be offering some crypto-pegged BEP2 trading pairs starting with a bitcoin-pegged coin-BTCB. The exchange intends to offer these crypto-pegged coins on its DEX platform.
With this, customers of the exchange will be able to trade using the BTCB/trading pair which will be like that of a pegged token and its own virtual currency.
Binance stated in the report that:
“We are launching tokens on Binance Chain that will be pegged to leading cryptocurrencies. This will start with a Bitcoin-pegged token that will be traded on Binance and proposed for trading on Binance DEX. Binance will issue a number of crypto-pegged tokens on Binance Chain (BEP2 token format) in the coming days, starting with BTCB, a BEP2 token pegged to Bitcoin.”
The exchange further stated that individual crypto-pegged BEP2 token will have the full support of the native digital currency and it (Binance) will also provide the address to the reserve wallet in order for people who are interested to be able to do their own personal audit.
The Chief of Binance, Changpeng Zhao posted a comment on Twitter just a few hours before the announcement of a 9001 BTC transaction generate from the platform’s wallet.
“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.”
Anyone looking to get more details regarding this project will have to check out Binance official link explaining it all.
Although it doesn’t look like the exchange is hiding anything, there is a need to thoroughly investigate fiat-pegged stablecoins especially when a part of the publication states that:
“The blockchain offers a much easier way to audit a crypto reserve than a traditional bank balance tether.”
Expanding Liquidity on the Binance DEX
By introducing crypto-pegged trading pairs, Binance will be expanding the markets for traders on its platform which is expected to help increase liquidity on its DEX platform.