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

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Ethereum
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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

CoinFlip Scores Big with BRD Wallet Partnership

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As the crypto markets move closer to mass adoption, one of the keys for future success will revolve around attracting as many market participants as possible.  While many crypto users are extremely tech oriented, a lot of those on the sidelines are not.  The cause of waiting on the sidelines could be due to a variety of reasons such as fear of the unknown, lack of knowledge, age, or a combination of all of the above.  In order to entice new users to join the crypto revolution, crypto ATMs are rising up across the country.  Of those, the largest and most influential crypto ATM company by a significant margin is CoinFlip.

In early October, CoinFlip announced on its Twitter that it had officially partnered with BRD Wallet to re-introduce their crypto ATM map.  Now, BRD wallet users will be able to locate their nearest CoinFlip ATM and receive a 10% discount for both buys and sells.  BRD brand awareness is growing quickly within the crypto community thanks to its innovative and entrepreneurial spirit.  The team strongly believes in the value of financial freedom and independence, and want to empower people across the world by leveraging the possibilities that Bitcoin and other cryptocurrencies provide.

Cryptocurrencies are already making a huge difference around the world.  Citizens of Venezuela, a country devastated by rampant inflation, have been using several cryptocurrencies…

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Can Libra help the crypto industry to reach new heights?

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Libra is motivated and determined to change the face of payment procedures across the globe and make the blockchain-based project the leaders of payments.
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The market for cryptocurrencies started with the launch of Bitcoin in 2009, and since then, so many cryptocurrencies have been launched that it gets hard to keep track of them. The crypto market has seen massive growth in the past 3-4 years as it started gaining attention from mass media, which helped in this boom.

From the past 2-3 years, several new cryptocurrency projects were launching in the market. Amid all this, the social media giant – Facebook announced the launch of their cryptocurrency platform, and this news got viral like wildfire. The announcement came forward in June, and the upcoming cryptocurrency is known as Libra, and it’ll come with its dedicated wallet called Calibra.

What is Libra?

Libra is a permissioned blockchain-based digital currency which is being developed under the supervision of Facebook’s vice president, David A. Marcus. The cryptocurrency is under development in partnership with an independent, non-profit member Libra Association. Facebook is the second member of the project, and these companies aim to use Facebook’s user base for the promotion of the digital currency when it is launched. The transactions and the cryptocurrency will be managed and cryptographically entrusted by the Libra Association.

Note: Libra Association was established by Facebook to look after the cryptocurrency and the transactions, and it was founded in Geneva, Switzerland.

The development of…

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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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