Malta-based cryptocurrency exchange Binance raised a few eyebrows this week when it announced that a USD 81 million Bitcoin transaction was soon to be en route.
The world’s biggest exchange assured users that there was “no need to FUD”, but it took some criticism from market analysts at its boast. David Tawil, president of crypto hedge fund ProChain Capital, said this was not the way exchanges normal conduct business and the Twitter announcement probably wouldn’t go down too well with the SEC. Of Binance’s “atypical” big transfer announcement, Tawil suggested that with SEC approval still awaited by the exchange giant, “it’s best if crypto industry players conform to already established norms”. He detailed:
“Within long-established Wall Street norms, its Twitter announcement is unusual, exchanges, such as the NYSE or the CBOE, don’t typically broadcast future block trades and don’t announce them via Twitter.”
Binance is clearly on the move, putting their travails behind them, such as last months USD 40 million hack, recently introducing its own blockchain. It also has plans to raise a reserve of 9,001 Bitcoin to cover a Bitcoin-pegged coin backed by a native coin which will trade on its platform. On the new tokens, the company commented that sales would experience a boost, commenting, “With the increase in the selection of tokens available on Binance DEX, there should be an increase in trading volume and liquidity.”
In the past, Bitcoin-derived assets have been faked, or tokens produced with a similar ticker, but the exchange claims that Binance Chain will take care of such issues to make sure such problems don’t occur. Binance also recently announced the launch of a trading platform, Binance US, specifically for US customers. This platform comes as a comfort to facilitate fiat-to-crypto exchange to serve full-fledged trading abiding by the market regulations.
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