- Crypto Exchange Binance announces the launch of its own Bitcoin mining group to expand the list of its financial services.
- Binance’s announcement raises concerns about centralization.
Binance CEO Changpeng Zhao announced that the crypto exchange will launch its own Bitcoin mining pool. The announcement is part of an expansion in the exchange’s financial services that include: staking, savings and loans.
According to Russian news portal, Coinlife, the exchange hired specialists for the launch of its Bitcoin mining pool. The experts are former employees of Bitmain. The company that builds specialized mining equipment is about to make a cut in its staff and Binance could benefit from that situation. In addition, it was learned that the launch has an estimated date for the second quarter of this year.
https://twitter.com/cz_binance/status/1245361117301358592
Expansion of Binance services raises concerns about centralization
Over the past two weeks, the crypto exchange has been making announcements about expanding its services. Additionally, Binance also launched the portal for OTC Trading. Users will be able to confirm their trades and receive quick settlements directly into the exchange’s account. The announcement says:
The minimum trade size for the portal is an equivalent value of 10,000 USDT, with 25 different coins and tokens initially supported for trading. Users simply need to have a KYC verified (Level 2) account on Binance.com to begin using the OTC Trading Portal.
On the other hand, on March 31st it was revealed that Binance is close to completing a deal to buy the data platform CoinMarketCap. It is speculated that Binance will pay around $400 million. More details are expected before the end of the week, but if the purchase is completed CoinMarketCap will join DappReview and WazirX as a Binance platform. The goal of the purchase is to leverage CoinMarketCap’s traffic. As one of the most popular data sources in the market, the website is visited by nearly 40 million users per month and has 80% more traffic than Binance.
However, the purchase has aroused concern in the crypto community. Binance’s expansion has caused some community members to express concern about an increase in market centralization. The main concern is that the purchase of CoinMarketCap could allow the exchange to manipulate data for its benefit.
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