Binance CEO: 'Finally' Bitcoin (BTC) 'Volatility is Head in the Right Direction'

Changpeng Zhao (“CZ”), the CEO at Binance, the world’s largest cryptoasset exchange in terms of daily trading volume, recently noted via Twitter that “volatility” in the digital currency market is “finally” headed “in the right direction.”

Binance Is Prepared To Serve Customers As Bitfinex Goes Offline For Maintenance

Zhao’s comments came in response to the bitcoin (BTC) price surging about 5% ($300) to over the $4,000 mark in the past 24 hours according to CryptoCompare data. In addition to a significant increase in the bitcoin price, other major digital currencies were in the green as well.

Zhao, a Chinese-Canadian tech entrepreneur who previously served as chief technology officer at OKCoin and worked at Blockchain.com, welcomed the return of price volatility while also responding to user concerns regarding Bitfinex’s scheduled maintenance-related downtime. According to a tweet from Bitfinex’s official Twitter account, the British Virgin Islands-registered firm’s trading platform “will be offline” on January 7th, 2019 for “three to seven hours.”

Bitfinex Preparing To Upgrade To "Bear-Metal Servers" To Enhance "Security" And "Performance"

Bitfinex’s management team explained that the exchange company is in the process of “completing the final stage of [its] data migration to dedicated bare-metal servers, in a move designed to significantly enhance platform speed, security and performance.” Notably, the last time Bitfinex went offline for maintenance work, there had been extreme volatility in cryptocurrency prices.

 

As CryptoGlobe reported in December 2018, Binance co-founder Zhao had said: "2018 has been a tough year in terms of the pricing for cryptocurrency, and I think we see a lot of projects not making it this year. So, it's a correction year. But the technology was there, and we want to kick off 2019 with a bang.”

Moving Forward With Development & Expansion Plans, Even During Bear Market 

In order to increase awareness about blockchain technology and cryptoassets, Zhao mentioned that the Malta-based exchange would be hosting the Binance Blockchain Week, which will be held in Singapore (between January 19th-22nd). Expressing his optimistic views about the emerging digital asset industry, Zhao had stated last year:

So, I think the people in the industry are still very confident about the future. So, there's no worries about that.

When asked how willing Binance was to expand its operations during a bear market, Zhao had said:

Our strategy has not changed [because of the bear market]. We've launched one fiat exchange [in 2018] ... we still want to build 10 more fiat exchanges, and we are also launching our decentralized exchange, which is a very core blockchain technology based exchange. That will also allow much more freedom. None of our plans have changed. We're still pushing forward very aggressively.

Token Listing Guidelines for Binance DEX

On Thursday (April 25), Binance unveiled guidelines for listing tokens on Binance DEX, its new decentralized exchange, and said that these guidelines would enable Binance DEX "to facilitate a larger number of crowd-vetted projects, hopefully listing 10x more tokens than currently listed on Binance.com."

Despite what some people think, issuing a token on Binance Chain does not mean that the new token will automatically get listed on Binance DEX. Binance, which has been criticized like most other centralized exchanges for having an opaque listing process, is hoping that the new "transparent and community-driven" listing process for Binance DEX will finally satisfy most if not all of its detractors.

The Binance DEX listing process consists of the following steps:

  • 1. Proposal
    • "It is recommended that Token Issuers first create a thread under the “Token Issuance & Listings” category in the Binance Chain Community Forum."
    • "It is recommended that this public thread contain full answers to the Binance DEX Token Listing Submission Criteria..."
    • "Token Issuers must initiate an on-chain Proposal Request (fee of 10 BNB) to list a trading pair for a token."
    • "Token Issuers must request BNB as the quote asset for their first trading pair. For example, ABC/BNB."
    • "Once the proposal request is submitted, Token Issuers must post the Proposal ID to their proposal thread in the forum as a ‘reply’."
  • 2. Deposit
    • "Once the proposal request is sent, Token Issuers will need to deposit at least 1,000 BNB within 2 days."
    • "Proposals that do not receive sufficient deposits within this timeframe will not be able to move on to the voting stage and their deposit will not be refunded."
    • "If the Vote passes in Step 3 (majority 'Yes'), the 1,000 BNB deposit will be refunded."
  • 3. Vote
    • "At least half of the voting power is required to vote 'Yes' for the proposal to be accepted."
    • "Binance Chain Validators can vote for either 'Yes', 'No', 'NoWithVeto', or 'Abstain' within the time period specified in the proposal request."
    • "The 1,000 BNB deposit will be refunded if the majority of Validators vote for 'Abstain'."
    • "Proposals are denied if one third of the Validators vote 'NoWithVeto' or if half of the Validators vote 'No'."
    • "Denied proposals will lose all the funds deposited, however this result will only occur in rare circumstances when there is relatively clear fraud, scam or spam."
  • 4. List
    • "If the vote is passed, the Token Issuer will need to initiate a 'List' transaction on-chain (2,000 BNB fee) within the timeframe specified in the proposal, while the previous 1,000 BNB deposit will be refunded back to the proposing user."
    • "The trading pairs will be live immediately after this request is completed."

Binance DEX Listing Process Workflow Screenshot.png

Binance says that the "listing application, project information, vote results and all community interaction will be public on the Binance Chain Community Forum," that the decisions of the Binance Chain Validators (who are the only ones with the power to vote) are "purely based on public information in the forum," and that there is no other way "for projects to contact Binance Chain Validators."

One interesting thing to point out is that although the Binance DEX listing fee has been set to 2,000 BNB (currently, according to CryptoCompare, worth around $45,580), originally Binance CEO Changpeng Zhao (aka "CZ") was thinking of making the listing fee on Binance DEX be around $100,000, as he mentioned in his first Ask Me Anything (AMA) session on February 7:

"There will be a listing fee on the DEX. I actually deliberately want to set that a little bit high, just so we reduce the number of spam or scam projects. And there’s also a voting process by the validators to be listed on the DEX. So there’s a fee, I think the fee will be probably close to $100K US, so we’ll see. But the fee is adjustable over time, it’s quite easy to change."

Earlier today, Mithril, the first crypto project to migrate its token (MITH) to Binance Chain, got listed on Binance DEX:

 

All Images Courtesy of Binance