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Will the Launch of Binance Chain Knock Ethereum’s Price Down?

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Ethereum (ETH) came as one of the most revolutionizing projects in the history of cryptocurrencies. It shifted the attention of developers from cryptos to the blockchain, thus bringing the era of smart contracts and dApps. However, despite the fact that Ethereum is a pioneer in this regard, it fails to keep up with the rapid advancement of the crypto sector, and competition is getting not only bigger, but also more advanced.

Ethereum has already faced off numerous ‘Ethereum Killers’ so far, and none of them managed to finish the job. However, with the recent launch of Binance Chain, things might change for the crypto world’s second largest coin. Not only does it have the potential to beat Ethereum as a platform, but its native Binance Coin (BNB) might also beat Ethereum’s ETH, or at least severely damage its price.

Why is Binance Chain a threat to Ethereum?

Ethereum has been around for years now, and during this time, it managed to establish itself quite well in the crypto industry. It is, and will always be second to Bitcoin, but the question is — whether or Bitcoin will be the only coin above it.

As mentioned, ETH managed to survive numerous Ethereum Killers already, so what threat might newly-launched Binance Chain pose? Well, Binance Chain is unlike any other foe Ethereum had had to face so far. It was launched by one of the world’s largest, most popular, and most trusted exchanges. It already has its native coin, which is already extremely popular, useful, and trusted.

Not only that, but the new blockchain appears to be faster, and with much lower fees. These days, numerous developers who have been working on Ethereum have to make a choice — whether to move on to Binance Chain or to remain loyal to Ethereum. Some will likely choose to stay, as Ethereum offers a pretty good deal in terms of liquidity, and its Ethereum 2.0 version might make the network much more scalable.

However, even with all this progress, Ethereum still has to work hard to achieve something that Binance Chain is already offering by default. In fact, Binance Chain will even have its own DEX.

On the other hand, Binance’s CEO, Changpeng Zhao, made a great point when he stated that Binance Chain does not have smart contracts, and it will primarily serve as a trading platform. This is great news for ETH, as smart contracts are this project’s specialty. Simply put, the two projects are going to be focused on entirely different things, and they might not ever clash with one another.

Binance’s goal is to contribute to the creation of a fully decentralized cryptocurrency ecosystem — something that was next to impossible until now due to highly centralized crypto exchanges. Of course, there were DEXes before Binance DEX, but none of them ever enjoyed the popularity and trust of Binance or its 10+ million users. While there are some talks of developers potentially asking for smart contract deployment on Binance DEX, Ethereum is still safe at this time.

Will Binance Coin outperform ETH?

Binance Coin has been around for some time now, but it truly became popular in early 2019. While it provided traders and investors with a significant discount on Binance ever since it was launched, it only gained more exposure with the return of Binance Launchpad. This is a platform that revolutionized token sales and inspired a new model — IEO (Initial Exchange Offering). The importance of BNB is that it is the only coin which can be used for the purchase of new tokens, which caused many to start purchasing it in large quantities in 2019.

As a result, BNB outperformed pretty much every other cryptocurrency, it more than tripled its own price in only a few months, and it decoupled itself from Bitcoin, is the only coin to successfully do it so far.

Of course, it is unlikely that BNB will outperform Ethereum, neither in terms of market cap nor position, at least for a long, long while. However, it is undeniable that BNB has been rising steadily for a while now, and it does have actual use cases which are more than attractive to investors and traders worldwide.

The DEX will allow it to grow even further, and it would not be surprising if the coin spiked in the following days.

Even with all of that working in BNB’s favor, many believe that it will never outperform ETH, simply because Ethereum is truly decentralized. It may be old and outdated, it may be slow, and its development may take time — but it is fully decentralized. This is not something that many would say for Binance DEX, at least not at this time. With all of that in mind, for the foreseeable future, it is unlikely that BNB will seriously damage Ethereum in any way, and even if some developers are leaving for Binance Chain — a massive part of the community will likely remain.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

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Altcoins

Cryptocurrency Collateralized Debt Positions Are Growing in Popularity

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While Bitcoin (BTC) continues to hover around the magical 10,000 price level, altcoins continue to fight an uphill battle.  Simply put, hopes of a future bull run continue to diminish as Bitcoin maintains its dominance.  One school of thought is that a few altcoins will survive and flourish, but which ones are anyone’s guess.  That being said, it’s hard to go wrong picking against the top coins like Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and EOS.  These projects have managed to find a foothold in the market and have a better chance than most of staying there.  While traders wait for their positions to increase in value, one opportunity that may be worth looking at is initiating a collateralized debt position.

What is a Cryptocurrency CDP?

In traditional terms, a CDP is essentially putting up collateral in order to receive a loan against the deposited amount.  There are several examples of this in our day to day lives.  Auto title loans from large companies like TitleMax are extremely popular with consumers.  Consumers are essentially able to use their car as collateral in exchange for a cash payment which can then be used for whatever needs the consumer has.  The consumer can continue using their car as long as debt payments are made.

The same concept applies to cryptocurrency CDPs.  Consumers are able to put up crypto tokens, such as…

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Hodium Presents a Compelling Opportunity for Outsized Investment Returns

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I’m sure all of us remember the cryptocurrency glory days of 2017 and early 2018.  It was one of the biggest bull runs in history and created incredibly wealth for quite a few early entrants.  Unfortunately, for most of us, those gains have most likely been wiped out during the altcoin apocalypse.  The truth is that traders probably thought a bit too highly of their trading abilities when the reality was that anyone could have thrown a dart at a board and ended up making money.

As markets mature (and the crypto market is definitely maturing) it becomes more and more difficult to generate alpha.  In that regard, it’s similar to traditional financial markets.  I can remember trading during my high school days.  It was the late 90s and right in the middle of the dot.com boom.  Eventually, however, the euphoria fades away and reality hits hard.  Now, it’s become rather difficult to actually trade profitably which has given way to the rise of hedge funds.

Hedge funds are investment funds that pool capital from accredited and/or institutional investors and invest in a variety of assets, often with extremely complex portfolio-construction and risk management techniques.  The professionals employed by hedge funds are the best of the best and have spent years honing their craft.  That is why they’re able to make the millions of dollars that they normally…

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KaratGold Proves Its Business Model By Providing Official Documents

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There has been a lot of renewed enthusiasm in the cryptocurrency market thanks mainly to Bitcoin’s strong move about 10,000.  Although Bitcoin continues to show its dominance, the altcoin market has yet to benefit from that rally.  A few of the largest altcoins remain popular but the rest of the market continues to lag behind.  In 2018, there was a lot of talk regarding a possible altcoin apocalypse where only the strong would survive.  That prediction appears to be playing out as expected.  Going forward, only the best projects that have a real world need will survive.  Crypto traders will have to spend a lot of their time doing proper research in order to find the best opportunities, just like in all financial markets.  One promising project that appears to have the makings of a future winner is KaratGold Coin.

KaratGold Background

KaratGold Coin is a cryptocurrency developed by the reputable German company Karatbars International, which maintains a leading position in the market of small gold items and investments. The project is part of a larger ecosystem, which involves several blockchain solutions that can be used for transactions, communication, investing and other tasks. During the past few weeks, however, the KaratGold ecosystem has been a target of unsavory scam allegations.  

Karatbars International and GSB Gold Standard Banking Corporation…

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