Binance’s Singapore Launch
Binance’s eagerly anticipated service in Singapore went live about three weeks ago to the delight of the region’s crypto enthusiasts. Singapore’s launch is in line with the company’s global expansion plan through which similar fiat-to-crypto launches have been executed in Uganda and Jersey. Binance exchange is inarguably the world’s largest crypto exchange platform by market capitalization. The platform reportedly powers over $500 million worth of crypto transactions daily. Binance warmed the hearts of users with their extremely low transaction charges- approximately 0.1%. Users were also attracted to the platform due to their vast crypto offerings. Users can trade over 130 cryptocurrencies on Binance.
Binance’s easy to use platform
Binance platform offers the best user experience for both experts and beginner traders. The site’s usability can be adjusted depending on user experience making it the most sought after platform by both newbies and experts. Aside from desirable offerings and user experience, Binance is also popular for its native token “Binancecoin (BNB).” BNB which is also tradable at the company’s platform enjoys a favorable market cap of about $3 billion. To further promote the token, Binance offers a decent discount for all fees paid using BNB in all kinds of crypto-to-crypto transactions. Until recently Binance did not support fiat currency. The company is gradually working on this major hindrance to the platform’s popularity by introducing fiat-crypto trades like it is doing in Singapore. The platform, however, continues to limit short selling and margin trade. Binance has also come under intense criticism for its sloppy security measures. The platform requests little information for verification from clients making it a target for cyber theft. Binance recently announced the theft of 7,000 Bitcoins valued at $41 million.
Half-baked Singapore Site
Some voices in the crypto community opinions that Binance’s Singapore launch was a let-down. Hawk-eyed critics have established striking resemblance between the Singapore’s site and U.S. based Coinbase. The newly launched platform is a far outcry from Binance’s traditional platform according to critics. The Singaporean site has only listed Bitcoin (BTC) and the Singapore Dollar (SGD) a massive deficit from the 130 tradable options listed on its traditional platform. The platform only permits users to purchase BTC at fixed prices which can only be traded against the SGD. Another downside to using the platform is that BTC purchased are not transferable to other exchanges. The company’s management is aware of these concerns and has said that “Singapore’s exchange is a work in progress.” Wei Zhou, Binance’s CFF confirmed that the company would be listing more tokens in the future.
Binance expansion program seeks to establish an exchange in every country thereby establishing a global footprint that will further stamp their leadership position. To achieve this objective, the platform will collaborate with local entities including strategic lenders that have adhered to all the regulations of the land. Binance recognizes Singapore’s influence in the Asian finance market and from the recently launched service they can later stretch their coverage to Tokyo and Hong Kong among other potential markets. Informed by their policy to partner with local entities, Binance’s Singapore’s presence is partly powered by Xfers- a local digital payment provider. Xfer according to its website has facilitated transactions grossing over $600 million for over 250,000 customers. It should be remembered that Xfers had initially partnered with Coinbase and supported its entry into Singapore’s market. Coinbase, later on, quit the Singaporean market citing Xfers’ inability to handle Coinbase’s accelerated growth in the region. According to Binance’s spokesperson, Xfers currently can support Banance’s large volumes trades. The company’s spokesperson also reiterated that its Singaporean site has full deposit/withdrawal mechanisms.
Vertex Ventures, an affiliate of the Singaporean government-owned- Temasek Holdings invested an undisclosed sum in Binance. Vertex announced its intentions to invest in the platform about a month ahead of its official launch in Singapore. Through investment, Vertex Ventures seeks to promote the advancement of fiat-crypto exchange in South East Asia. Vertex’s backing is a big deal for Binance given the former’s influence and financial might. Vertex Ventures reportedly manages assets roughly worth $223 billion. The company’s vast portfolio includes assets in the United States, China, India, and Israel among several other locations. Vertex is famous for its indulgence in burgeoning startups and is currently managing startups worth nearly $2.5 billion.
The Launch of DEX
Aside from the Singaporean platform launch, Binance has unveiled the anticipated Binance DEX (Decentralized Exchange) underpinned by its Binance Chain. The company is inviting stakeholders in the crypto community to transact through the blockchain. Binance believes that the platform presents new possibilities offering a transparent financial ecosystem. The platform is designed that there will be no central custody of tokens allowing users to be in absolute control of their assets. The company announced that its native token (Binance Coin ‘BNB’) has already ditched Ethereum-based ERC-20 to the newly launched BEP-2. BNB is the native token on the platform and is expected to power the network’s transactions Binance Chain currently supports a vast of wallets including Trust Wallet, Magnum Wallet, Enjin, CoolWallet, Atomic Wallet, ZelCore Wallet, Cuinomi Wallet, Math Wallet, Guada Wallet, Infinito Wallet, and Exodus. The company is yet to announce the official date when trading will commence.
Prior to the official launch, DEX has been through a rigorous testing process for about two months since February. The company confirmed that over 8.5 million transactions had been carried out successfully through the platform. The network’s testing process incited fierce trading competitions, coding, and a bug bounty scheme. Binance relied heavily on contributions from its Binance community for the development of new features and open-source kit. Bainance stands to profit big time should it succeed to popularize the new network. Currently, over-the-counter trading is the company’s main revenue source followed by transaction charges. Binance is looking to monetize the network since it will levy network fees from users. The platform is also expected to popularize BNB which has had a spectacular run so far. The coin is currently priced at $24.20 from January’s $6.02.
(By Neha Gupta)
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