Ethereum co-founder accuses Binance DEX of centralization

  • Ethereum co-founder Vitalik Buterin said there are arguments to charge Binance’s DEX for centralization.
  • Buterin said there is misleading propaganda about Ethereum (ETH).

Vitalik Buterin sparked a controversial discussion on the social network Twitter. The co-founder of Ethereum spoke about the alleged centralization of Binance’s decentralized exchange (DEX). He stated that Binance’s practices make it more centralized than Ethereum.

The centralization of Binance’s DEX according to Vitalik Buterin

Buterin’s discussion with members of the cryptocommunity began when he responded to a tweet from the BTSE exchange. The platform was promoting new features, such as its support for Tether Liquid, with the previous lead developer of Monero, Riccardo Spagni (also known as fluffypony).

From the tweet, Buterin received criticism about the practices of Ethereum and its funding. However, Buterin concentrated on criticizing Binance’s DEX. The practices of the exchange make it, according to Buterin, a better target to talk about centralization in an entity that “is hardly decentralized”.

The use of a token issued by the exchange is one of the points that Buterin says makes Binance’s DEX centralized. The BNB has been one of the best performing cryptocurrencies in 2019, but since it is subject to Binance’s decisions and power, it can contribute to the reduction of its decentralization.

Fake propaganda and criticism about Ethereum’s centralization (ETH)

Ethereum is familiar with criticisms of centralisation as mentioned before. In the discussion, the members of the cryptocommunity ironically stated how the first tokens of Ethereum had to be purchased by sending Bitcoin (BTC) to a certain address.

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On the other hand, Vitalik Buterin defended the practices of Ethereum and stated that there is false propaganda that seeks to dissuade investors from putting their money into Ethereum:

The part I think is silly is criticizing ethereum for being centralized and enabling ICOs and then turning around and promoting using a centralized token on top of a permissioned consortium chain that is doing an ICO.

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Lina Seiche, BTSE Marketing Director, was also part of the discussion. Seiche, who is a harsh critic of Vitalik, accused him of talking about decentralisation when Ethereum “clearly isn’t decentralized”. Buterin responded that Ethereum has only “some models of governance”.

Other events have caused a kind of chain effect that continues to affect ETH’s performance. The first one is the sale of more than 70 thousand ETH that the Ethereum Foundation sold for its financing. The sale would have occurred at the suggestion of Vitalik Buterin who also sold a significant amount of his ETH when ETH reached its al ltime high. Buterin received a lot of criticism for this action.

Secondly, the selling pressure that could be caused by the movement of funds from the PlusToken scam in the market. The scammers are in possession of 700,000 Ethereum that could negatively affect ETH holders.

The price of the Ethereum is, at the time of writing, $128.76 USD with losses of 3.32% in the last 24 hours and 15.37% in the last 30 days.

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About Author

Reynaldo Marquez has closely followed the growth of Bitcoin and blockchain technology since 2016. He has since worked as a columnist on crypto coins covering advances, falls and rises in the market, bifurcations and developments. He believes that crypto coins and blockchain technology will have a great positive impact on people's lives.

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