Binance Seeks to Drag Projects from Ethereum to Binance Chain

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Binance wants to strengthen its dominant position in the cryptocurrency ecosystem by attracting projects from Ethereum to the Binance Chain.

As an incentive, Binance proposes listing the token in case of a positive decision of the project representatives, however, if they refuse, various sanctions may follow, up to and including token delisting from the site.

“Changpeng Zhao has built what can only be described as a global crypto empire, facilitating the trading of hundreds of millions of dollars worth of crypto each day. And that empire, which traces its origins to 2017, has influence that touches just about every corner of the nascent market,” writes The Block.

You don’t have to go far for an example. Immediately after delisting Bitcoin SV with Binance, several other exchanges also reported that they would stop supporting the project.

Similar influence extends to other cryptocurrency projects. At the moment, every startup wants to get to Binance, as it opens up huge opportunities.

“Just given the size of Binance and its trading volume it is obviously a very influential exchange and we knew it would be very meaningful for PAX to be listed on Binance,” a spokeswoman for Paxos, the company behind the stablecoin Pax said.

Listing on Binance is a particularly important moment for any project because the exchange is the main source of liquidity. It becomes obvious that Binance is using its influence to put pressure on blockchain startups, convincing company representatives to switch to Binance Chain.

“Well, let’s just say that projects who move some % of their chain off of Ethereum to Binance Chain will get favorable treatment — and those that don’t could be delisted if their volumes are less than $1M/day,” one source said.

Binance wants to transfer everything to its network. They are betting that they will get away with a systematic violation of the law, since they plan to become an absolutely decentralized system, an anonymous source noted, commenting on the company’s constant moves from one jurisdiction to another. – For the successful implementation of their plans, they need to attract everyone to their blockchain. The interesting thing is that the whole business was built around Ethereum and tokens on it. Where would Binance be if there were no Ethereum?

Featured image via Pixabay