- Binance DEX will no longer allow customers to use the exchange with an IP address in the US.
- The community is unhappy with this decision, despite being told that the ban was the decision of Binance.org.
Binance DEX, the decentralized cryptocurrency exchange, made a major announcement a few days ago that is not sitting very well with the community. The announcement declared that the exchange would not be accessible by users that have an IP addresses in the United States.
Considering the massive role that the US plays in cryptocurrency transactions, the community clearly came back with a lot of criticism, even accusing Binance of not being a truly decentralized platform.
The Binance ecosystem has been criticized before for being more centralized than they let on, depending too much on the personnel in management. However, Binance has consistently stated that their platform for trading is decentralized, stating that any accusation otherwise is entirely baseless. The CEO of Binance, Changpeng Zhao, was asked how a decentralized platform could exclude users from a particular region of the world, to which he stated that the exclusion was due to Binance.org instead of the DEX.
Ever since this announcement came out, there have been crypto proponents and stakeholders alike that have lashed out. In fact, Vitalik Buterin of Ethereum even posted to Twitter about this concern, receiving a reply from Zhao that what is said on Twitter is not always true.
He also posted another tweet that repeats the notion above that the DEX did not block US customers, but Binance.Org did.
With the partnership, Binance.US will be launched, which is meant specifically for American customers. Considering the block from the main exchange, this partnership has raised a lot of questions, coming at the same time that a lot of other exchanges have blocked the US, like Huobi Global.
Even with the explanation that Zhao offers, it is clear that the community isn’t exactly convinced that he is being truthful. Last month, after hackers went after the Binance DEX, the platform became the subject of an accusation.
The controversy just got worse after Zhao announced that Binance was a potential reorganization involving the Bitcoin that was lost during this $40 million attack.
The community further stated that they would’ve been persuaded by this idea, eliminating the myths regarding decentralization, if this had been possible.
The Inaugural Binance Stablecoin Completes Quantstamp Audit
The first Binance stablecoin is coming, and the token just got a clean bill of health from smart contract security startup Quantstamp.
On July 18th, the Y Combinator-backed auditors announced they had finished reviewing the code of the pound sterling stablecoin, dubbed Binance GBP (BGBP) by the powerhouse Malta-based cryptocurrency exchange.
As part of the audit, Quantstamp’s experts checked the token’s code against the ERC20 token standard and combed for security flaws and any other problematic issues. The team’s work led to Binance updating their ERC20 libraries through OpenZeppelin and removing other miscellaneous “low risk issues.”
A Dual Issue Digital Sterling
Binance, nimble navigators of global regulatory arbitrage, are pushing ahead on the stablecoin against the almost poetic backdrop of Facebook blockchain head David Marcus having faced calls for a Libra development moratorium in U.S. congressional oversight hearings this week.
Of course, BGBP will simply be pegged 1:1 with the pound, whereas Libra is being more ambitiously devised like a Big Tech-backed non-sovereign central bank currency. (Note: Binance has considered attempting to join the Libra Association, per company chief strategy officer Gin Chao).
The BGBP won’t be too simple though, as the token is set to be released both on Ethereum and the exchange’s in-house blockchcain, Binance Chain, Binance chief executive officer Changpeng Zhao said on the news:
“The Quantstamp team is thorough and efficient when it comes to ensuring the security of ERC20 tokens, and we are appreciative of their audit of our first stablecoin, BGBP. As a dual issue token, BGBP is created on both Ethereum as an ERC20 token and on Binance Chain as a BEP2 token. We will eventually enable the two versions of BGBP to be converted freely and traded on Binance Jersey and Binance DEX.”
The stablecoin comes after CEO Zhao confirmed during a YouTube “Ask Me Anything” back in May that the exchange was exploring launching its own stablecoins.
The Cryptoeconomy’s Auditors of Choice
Quantstamp CEO Richard Ma hailed the BGBP audit as just the latest sign of the startup’s rising prominence in the cryptoeconomy:
“At Quantstamp, we are building the standard for blockchain security. Companies approach us because we help them innovate securely.”
In recent months, the fledgling play has made a name for itself in reviewing the smart contracts of high-profile industry stakeholders like eToro and Prysmatic Labs, and in doing so has “secured over a billion dollars of digital asset value,” the company has said.
In June, the startup launched the Quantstamp Security Network V2 on the Ethereum mainnet. With the activation, users can leverage the network scan and store smart contract vulnerability reports on the Ethereum blockchain. The update also made it possible for community members to run a Quantstamp node to earn the network’s native token, QSP.
Binance Has One Speed: Grind
The Malta-based exchange is taking a blitzkrieg approach to asserting itself as the cryptoeconomy’s leading service provider.
This month alone, Binance has burned $24 million worth of its BNB tokens, opened up a margin trading platform, announced plans for a cryptocurrency futures service, and turned two years old.
On the margin trading launch, CEO Zhao noted the company was gunning to become the most useful exchange brand for cryptocurrency users of all stripes:
“This is another step in providing an inclusive cryptocurrency trading platform catering to the needs of both advanced institutional traders and retail traders under the same roof. We are providing a new tool in the financial services and cryptocurrency markets to help amplify trading results of successful trades.”
Notably, the exchange also recently confirmed that it was looking to open up a new America-based operation, Binance US.
Binance to share $775,000 of Stellar after accidently staking for 11 months
Binance have announced that the exchange will be distributing Stellar coins (XLM) after mistakenly staking the coins for nearly one year.
The announcement also states that Binance will now be supporting XLM staking on the exchange following the discovery of over 9.5 million XLM in cold and hot wallets.
The discovery of the XLM comes after Binance decided against upgrading their wallets last year August, stating “the Binance team heeded the Stellar team’s recommendations to change some parameters on both cold and hot wallets. This change has allowed us to unknowingly earn staking rewards starting August 31, 2018.”
Binance will now distribute the $755,000 worth XLM to users on the exchange that held XLM with specific snapshots being taken back to work out distribution amounts. The exchange has now also implemented staking of XLM on the exchange.
Binance adds EOS and LINK to margin trading coins and borrow-able assets
Binance have added two new coins to their margin trading platform as well as 3 new assets to their borrowable offering.
In a recent announcement, Binance margin trading, which just recently went live, have added two popular coins to their margin trading offering.
Binance have added top 20 coins EOS and LINK to the current margin trading offering, making it one of the first margin trading exchanges to offer the two pairs. Binance margin trading now offers EOS, LINK, TRX, BNB, XRP, ETH and BTC.
Binance also announced that the exchange has added BNB, LINK and EOS to coins that can be borrowed on the exchange. All coins are currently open for trading and borrowing on the exchange as Binance continues to impress with new listings to their margin platform, which will likely be looking to challenge the likes of BitFinex and BitMEX in the future.