Binance Launches Public Testnet for Binance DEX, BNB Surges Over 12%

On Wednesday (February 20th), Binance, probably the world's largest cryptocurrency exchange by adjusted trading volume, released a public testnet for the "Binance Chain" blockchain, which means that you can now test the "Binance Chain Explorer" tool and Binance's new decentralized exchange "Binance DEX" (which is powered by "Binance Chain").

Binance Chain

Binance says that ever since its platform was created, there was a vision of one day creating a native blockchain for it. It also wants you to know that this was "a community-driven development project with developers from all over the world" (with, of course, Binance.com as the largest contributor). The idea is to have a blockchain that "will serve as an alternative marketplace for issuing, using, and exchanging digital assets in a decentralized manner." 

Although the Binance Chain is not ready to go live in production, i.e. the Binance Chain mainnet is not ready yet for launch, the public testnet was launched today at 08:00 UTC. 

The first application to be powered by Binance Chain is Binance DEX, a new decentralized exchange (DEX) that "aims to carry over the best features of the current Binance exchange in a decentralized setting, while also offering the benefits and security of a DEX."

Binance DEX

Why should anyone want to use a DEX? According to Binance, these are the main advantages of using a DEX over a centralized exchange:

With a DEX, a person fully holds his crypto funds and directly plug into the network to trade without needing to provide personal information. Unlike centralized exchanges that may be subject to downtimes, a DEX is kept running by nodes distributed around the world and codes that execute functions.

However, the existing DEX options (which nmostly run on Ethereum) have several drawbacks that prevent them from achieving mass adoption:

"The user experience on existing DEX platforms is less intuitive and user-friendly compared to centralized exchanges. In addition, DEX platforms face speed and liquidity issues, which leave them lagging behind their centralized peers."

Therefore, Binance decided to create a blockchain (Binance Chain) that would be secure and fast enough to allow the creation of an intuitive, easy-ti-use DEX that could handle the same "handle the same amount of transactions that the current Binance platform handles," which in its current beta form, according to Binance CEO Changpeng Zhao ("CZ" for short) is around ""a couple of thousand" transactions per second.

How to Try the Binance Chain Testnet

To create your own testnet address, you can use either the Binance Chain Web Wallet or Binance's official mobile wallet (for iOS and Android) Trust Wallet.

You can try Binance DEX at https://testnet.binance.org/. The first step is to create a test wallet. But before you can start doing some test trading on Binance DEX, youj need some funds in your test wallet. You can get 200 test BNB via the testnet faucet, which requires having a Binance.com account and at least a 1 BNB balance (to prevent abuse of the testnet); a few minutes after specifying your testnet address, you will receive 200 test BNB from Binance. 

As for playing with the Binance Chain testnet explorer tool, it is available at https://testnet-explorer.binance.org

Binance has created several helpful tutorials for using the Binance Chain Explorer and Binance DEX. The links for these tutorials are given in the following tweet:

Binance has also created a comprehensive Frequently Asked Questions (FAQ) guide for Binance Chain and Binance DEX, which is available at https://binance-chain.github.io/faq.html

Binance Coin (BNB) Price Action

Due partly to the anticipation of today's launch of the Binance Chain testnet, BNB has had a terrific rally in the past two weeks. As you can see from the two-week chart below (provided by CryptoCompare), the BNB price has gone up from $7.97 at 08:00 UTC on February 6th to $11.01 at 08:00 UTC on February 20th, i.e. an increase of 38.14%:

BNB_two week_20 feb 2019.png

At press time (08:30 UTC), BNB is trading at $10.90, up 12.37% in the past 24-hour period.

Featured Image Courtesy of Binance

Binance Coin Could Face ‘Bloody Correction’ if Margin Trading Rollout Goes Awry, Analyst Claims

Josh Rager, a cryptocurrency trader and analyst popular on social media, has recently predicted that Binance Coin (BNB), the cryptocurrency of leading crypto exchange Binance, could face a ‘bloody correction’ if anything goes wrong with the rollout of its margin trading feature.

On microblogging platform Twitter the trader reminded his followers that all markets correct, and that a failure in the rollout of its margin trading options could be a trigger that sees traders dump BNB.

Data from CryptoCompare shows the BNB token has been having an incredible year so far. While in early January the cryptocurrency was trading at about $6, it has since surged to hit the $35 mark this month. In the last six months, cryptocurrency’s price has risen by over 500%.

This saw Binance Coin become the seventh largest cryptocurrency by market cap. Its price rose as the exchange has been seeing various positive developments, among them the launch of Binance Jersey, which lets users trade BTC and ETH for EUR and GBP, and the launch of a decentralized exchange that lets users trade directly from their wallets.

This month, the cryptocurrency surged to a new all-time high after it teased the rollout of margin trading, a feature seen as an important growth factor for crypto trading. So far, Binance stayed away from it, while exchanges like Kraken and Poloniex already offer it to its users.

Speaking to TechCrunch, a Binance representative reportedly confirmed that the exchange is going to launch margin trading “soon.” To Josh Rager, if “anything remotely goes wrong” with the launch, the price of Binance Coin will “dump like no other.”

It’s worth noting, however, that earlier this month Binance was hacked for over 7,000 BTC, then worth over $40 million. The crypto’s price was barely affected by the incident, even though it forced the exchange to temporarily shut down deposits and withdrawals. The market likely barely reacted as the company has a Secure Asset Fund for Users (SAFU) that covered the losses.

At press time, Binance Coin is trading at $33.3 after falling 4.9% in the last 24-hour period. Over the past 30 days, the cryptocurrency is up by 42%.