- CZ calls the launch of MainNet a new chapter
- The Swap takes place on April 23
- The initiative could boost the use of DEXs
The world’s largest cryptocurrency exchange Binance has launched a blockchain for its Decentralized Exchange (DEX) Binance Chain. They have set the date for swapping of the existing ERC20-based Binance Coin (BNB) for April 23, 2019.
CZ Has Performed the First Transaction
Binance CEO Changpeng Zhao (CZ) said in an official blog post the launching of the MainNet for its decentralized exchange Binance Coin (BNB) was a new chapter, adding that it will have all the currently existing Binance Coin, which is based on the ERC20 standard swapped to the new network in a few days. What’s more, CZ executed the first transaction on Binance Chain. Zhao stated:
The @Binance_DEX members gave me the honor to do the first transaction on Binance Chain. It's FAST and SLEEK! Love it. pic.twitter.com/GkWpcbfVf6
— CZ Binance (@cz_binance) April 18, 2019
According to the announcement, Binance will conduct a 1:1 swap of the existing tokens for users in the new blockchain. Those users who want their tokens replaced don’t have to do anything since they only have to leave their Binance Coin tokens on the Binance wallets.
Users are also allowed to keep their existing BNB by withdrawing them from Binance during the swap. However, the exchange says following the swap, Binance won’t be supporting withdrawals from the ERC20 BNB tokens. The co-founder of Austin-based crypto hedge fund Multicoin Capital Management reacted to the announced via email saying:
“The launch of Binance Chain is one of the most important crypto events of the year.”
Boost the Use of Decentralized Exchanges
As per the announcement, the new tokens will be called BEP2 and there will be an initial supply of 200 million coins, 11 million of which will be burned on the Binance Chain while 48 million will be frozen. Binance Chain Explorer and Web wallet will be available for public use beginning the set date of April 23, 2019.
The announcement from Binance is a demonstration of the exchange’s steady progress so far this year. The exchange has continued to develop its services and infrastructure which includes its token sale platform and custodial exchange even as competition grows among cryptocurrency exchanges.
The initiative is likely to boost the use of decentralized exchanges which accounts for only a small percentage of the trading volume. Binance believes that over time cryptocurrency trading will move to its decentralized exchange, therefore, giving it more trading volume in the near future.