Will the Launch of Binance Chain Knock Ethereum's Price Down? - Global Coin Report
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Will the Launch of Binance Chain Knock Ethereum’s Price Down?

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Ethereum

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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3 Reasons Why WISE Token Could Be a Massive Winner in 2021

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WISE token

After working in proprietary trading for over a decade, I decided to transition to crypto in early 2017.  Although crypto is significantly different from traditional capital markets, I managed to successfully find a niche for successful and opportunistic trading.  While 2017 was the perfect time to get involved, the past few years have proven to be a bit more challenging as far as generating ROI.

Cryptocurrency traders have spent the past several years searching far and wide for the next big winner.  While the market as a whole hasn’t been very bull friendly, one specific area that appears to be gaining traction is decentralized finance, more commonly known as DeFi.  This area generally refers to the digital assets and financial smart contracts, protocols, and decentralized applications (DApps) built on Ethereum.  The reason why so many crypto entrepreneurs are flocking to this space is that it allows them to create traditional financial vehicles in a decentralized network, outside the meddlesome control of foreign governments.

One extremely popular DeFi project is Chainlink (LINK) which is a decentralized oracle network that provides real-world data to smart contracts on the blockchain.  Chainlink has seen its token price increase by more than 300% year-to-date.    Another impressive project in the space is Kyber Network (KNC) which has seen its token soar from $0.20 at the start of the year to more than $1.60 at present.  Kyber Network’s on-chain liquidity protocol allows decentralized tokens swaps to be…

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Lotto Nation is Revolutionizing the Traditional Lottery Industry

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Lotto Nation

As the global economy continues to deal with the economic fallout due to the ongoing pandemic, companies are coming to terms with the fact that normalcy may not return for quite a while.  Many economists are wondering how the business landscape will look a year or more from now.  It’s certainly possible that many businesses, such as retailers and restaurants, may be unable to survive the current downturn.  But while some businesses will falter, others will emerge stronger than ever.

Traditionally, when economies go through a severe downturn, companies adapt.  Those that maintain the status quo usually have great difficulty while those that adapt prosper and conquer.  One possible example of this is Lotto Nation.  Thanks to the entrepreneurial skills of Nils Thomson, the Founder and CEO of Lotto Nation, the company is attempting to completely modernize the traditional lottery industry.

Current Lottery Model is Severely Outdated

It’s safe to say that nearly every human that has ever walked the earth has fantasized about winning the massive jackpot that would completely change their life.  These dreams have turned the global lottery industry into a $302 billion market that is expected to reach $380 billion by 2025.  Despite this predicted growth, the industry suffers from a variety of problems that are preventing it from really exploding.

Perhaps the biggest problem is that traditional lotteries are centralized.  Because of this, there is essentially no oversight on what a lottery provider…

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Aluna.Social is a Compelling Social Platform for Crypto Traders and Investors

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Aluna.Social

When one thinks about the social media landscape, the companies that first come to mind are most likely Facebook, Instagram, LinkedIn, and Snapchat.  These platforms are a great way to stay connected with friends, families, and colleagues, especially when geographic distance is a factor.  But, in addition to just chatting about life in general and sharing pictures, social media can be used to bridge the information gap that exists within the investment community.

Over the last decade, many trading offices have been established in large cities all over the world which allow solo traders and investors to pay a monthly fee in exchange for a workspace.  The real benefit to trading in these offices is to participate in the free flow of trading ideas and information.  Proprietary trading is one of the most challenging careers to be successful at and the exchange of ideas is almost required in order to succeed.  Traders at hedge funds and investment banks work in teams so why shouldn’t remote traders?

While these trading offices are a great way to help bridge the information gap, Aluna.Social may provide an even better way, especially as it relates to cryptocurrency trading.

Mission Statement

Aluna.Social, founded by Alvin Lee and Henrique Matias, is a multi-exchange social trading terminal for crypto traders and investors.  The goal of the platform is to help newcomers shorten their learning curve, unlock their full potential, and improve trading performance.  Cryptocurrency trading can…

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