The launch marks a new milestone for Binance as it unveils launched the mainnet its unique blockchain, Binance Chain, which will be accessible to the public on April 23rd. This represents one of the company’s significant steps towards establishing a vibrant decentralized network.
As part of the pivot, holders of Binance Coin (BNB), currently an ERC20 token residing on the Ethereum network , will participate in a mainnet swap which will soon undergo a transition to align with the BEP2 token standard of Binance Chain.
Members of @Binance_DEX honored me by letting me perform the initial transaction on Binance Chain. It's lightning-fast and impressive! I'm thrilled. pic.twitter.com/GkWpcbfVf6
— CZ ???? Binance (@cz_binance) April 18, 2019
In line with this, Binance has clarified:
“At the earliest on April 23rd, 2019, Binance.com will support the BNB mainnet switch. Upon successful implementation, users can send BNB withdrawal requests to a Binance Chain address . This move will function as a conversion tool for switching ERC20-based BNB tokens to their Binance Chain-native BEP2 equivalents.”
Participants and exchanges must take part in the conversion process, which Binance suggests concluding within a three-month timeframe.
The opening up of Binance Chain means Binance will soon introduce a corresponding decentralized exchange (DEX) in addition to its already successful centralized trading system, recognized among the biggest — possibly the biggest — by cryptocurrency trade volumes worldwide.
The DEX could become a standout feature in the marketplace, largely due to Binance's prominent support — a factor already affecting some projects’ decisions to change blockchains.
Mithril (MITH) First to Migrate
Binance is making a concerted effort to recruit new ventures to its blockchain. Fairly recently, Mithril (MITH) became the first project on board.
https://twitter.com/cz_binance/status/1118895107464241152
This social media initiative, initially powered by the Ethereum blockchain for its MITH token, is moving its operations to Binance Chain's BEP2 format.
“The advantages of Binance Chain, such as its user-friendliness and safety, alongside the remarkable speed of one-second block times, play a crucial role in our strategic move this quarter,” disclosed Mithril’s team.
The announcement sparked significant demand, boosting the MITH value by over 67%, taking it past $0.07 USD.
IEOs are yesterday's news… The buzzword now is 'Chain migrations'. pic.twitter.com/ouqqK4Ub72
— Rob Paone (@crypto_bobby) April 18, 2019
This temporary surge in popularity might entice other projects to shift similarly. Nonetheless, some may prefer sticking with established blockchains like Ethereum, which boasts a well-oiled ecosystem.
Binance Flexing Its Might?
Recently, The Block unveiled that a Binance representative had approached a crypto initiative, stating that migrating to Binance Chain had benefits, while failure to migrate might result in delisting amid low trading volumes.
“To put it frankly, projects relocating part of their operations from Ethereum to Binance Chain could receive preferential treatment — but those that stay back risk delisting if they fall short of $1 million/day volume,”
an employee informed the anonymous project, according to The Block.
Binance later expressed regret over the situation. Yet, the event underscores a key point: Binance is leveraging its might and visibility to attract crypto endeavors like Mithril away from competing platforms.
https://twitter.com/mdudas/status/1118910842534281219
The stakes rise with Binance’s unparalleled standing. Recently, the exchange drew attention by delisting Bitcoin SV following lawsuits allegations filed by BSV advocate Craig Wright.
The move spurred other platforms to follow suit as seen with various exchanges like Kraken, ShapeShift, and Blockchain.com following suit with their own BSV removals.
The moral of the story? All eyes are on Binance — precisely the spotlight the exchange aims for.
