This morning, Binance CEO Changpeng Zhao (also known as CZ) shared some bullish news for the Binance community. Speaking at Forbes Asia, CZ disclosed that the launch of Binancechain is going to be “very soon.” The full quote reads:
We are launching Binancechain very soon, in a couple months or so, and you will be able to issue tokens on that....I think there will be millions of coins and thousands of blockchains." @cz_binance at @ForbesAsia #ForbesBlockchain @ForbesCrypto pic.twitter.com/az5H62Pgdm— Michael del Castillo (@DelRayMan) December 4, 2018
Binance has previously announced that it will be launching Binancechain, a proprietary blockchain that will be used to host tokens and pay for trading fees. As of today, Binance’s native currency (BNB) is an ERC-20 token, meaning it is built on the Ethereum blockchain. Its current purpose is to help users save on trading fees. When users pay for trading fees with BNB, they save 25% on the cost of their orders.
Binance hopes to use its own blockchain to allow users to issue assets easier and trade faster. Operating on the Binance blockchain will mean that the exchange won’t have to interact with the Ethereum chain, which has dealt with congestion problems in the past. For example, when CryptoKitties was launched, there were so many pending transactions that fees and confirmation times went through the roof.
CZ has remained a big-time cryptocurrency bull. Earlier this year, in an exclusive interview with CryptoGlobe, he said that “at any minute the bull market will return, and historically, October to December are the good months.” To prepare for the bull market, Binance has been hard at work preparing Binancechain and its complementary decentralized exchange (DEX), which was announced earlier this year:
A first (rough, pre-alpha) demo of the Binance Decentralized Exchange (DEX), showing issuing, listing and trading of tokens. All cli based, no GUI yet. A small step for #BinanceChain, a big step for #binance. https://t.co/2aXkR0gclP— CZ Binance (@cz_binance) August 9, 2018
To see a demo of Binancechain in action, click here for a video from Binance.
Its Binance Token (BNB) is reacting nicely to the news. Over the past 24 hours, it’s risen from a low of $5.05 all the way up to $5.60, for a nice 11% gain.