Binance – What I Hate, Love, and Fear About the Cryptocurrency Exchange – Gadgets 360

Binance started off as a crypto exchange in 2017. Today, it is probably the biggest player in the 2.6 trillion dollar crypto industry. The Binance ecosystem includes multiple crypto exchanges, multiple cryptocurrencies (Binance Coin (BNB), Binance USD (BUSD), Bitcoin BEP2 (BTCB)), the Trust Wallet and its TWT token, a Token Launchpad, and more.

Binance operates two blockchains that run in parallel:

BSC has gained massive traction in 2021 mainly because of Ethereum's slow speeds and high costs. Creating tokens on BSC is simple and cheap. But there is a caveat here validation is done by a small number of validators and this makes it quite centralised.

I also love the Binance cryptos, especially BNB and BUSD.

Binance Coin (BNB) was issued as part of Binance's initial coin offering (ICO). Its first use case was discounted trading fees on the Binance exchange. Did you know that 90 percentof Binance employees earn a portion of their income in BNB?

BNB is the third-largest crypto with a market capitalisation of over $82 billion (roughly Rs. 6,14,414 crore) and a daily trading volume of over $2.6 billion (roughly Rs. 19,481 crore).

BUSD is a US dollar-backed stablecoin issued jointly by Binance and Paxos. BUSD is one of the few stablecoins approved by the New York State Department of Financial Services (NYDFS).

I am also a fan of Trust Wallet, a popular mobile wallet that supports 53 blockchains and more than a million digital assets. It was acquired by Binance in 2018.

Binance has three crypto exchanges:

Of late, I have come to hate the Binance.comcrypto exchange due to its glitches and outages.

In fact, a group of derivative traders are suing Binance for trading losses suffered due to outages of the platform. This case could set a global precedent on the liability of exchanges.

A few days ago Bitcoin prices suddenly plunged 87 percent on Binance's US exchange from $65,000 to $8,200.

Binance is facing legal troubles across the world Canada, Cayman Islands, Italy, Japan, Malaysia, Singapore, South Africa, Thailand, the UK, and the USA.

It's not just problems with regulators. Hundreds of investors are expected to take part in proceedings against Binance, seeking damages for money they lost during a major outage.

Binance says it has no official headquarters. That has made it difficult for investors to figure out how, and where, to take the company to court. Swiss private equity firm Liti Capital has promised to provide a minimum of $5 million in funding for the case.

Binance is probably the most important part of the crypto ecosystem and its legal problems could have a massive negative impact on crypto prices.

Rohas Nagpal is the author of the Future Money Playbook and Chief Blockchain Architect at the Wrapped Asset Project. He is also an amateur boxer and a retired hacker. You can follow himon LinkedIn.

Interested in cryptocurrency? We discuss all things crypto with WazirX CEO Nischal Shetty and WeekendInvesting founder Alok Jain onOrbital, the Gadgets 360 podcast. Orbital is available onApple Podcasts,Google Podcasts,Spotify,Amazon Musicand wherever you get your podcasts.

Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.

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Binance - What I Hate, Love, and Fear About the Cryptocurrency Exchange - Gadgets 360