Binance CEO Scolds “Flawed, New” Cryptocurrency Exchanges
Changpeng Zhao (‘CZ’), the chief executive officer and co-founder of world-leading cryptocurrency exchange, Binance, has published a quarterly recap that reasserted its market dominance in a time where morally-questionable competitors had seemingly been gaining.
Binance with Record BNB Burn
The Binance leader started by declaring that 2,528,767 of its native Binance Coin (BNB) – the equivalent of roughly $32.7 million USD – will be burned for the quarter. This, the fourth quarterly burn ever conducted by the Binance exchange, represents a record amount; an impressive feat, given the strong bearish market conditions that characterized the April, May and June months.
Binance Coin Not the Only Burn Victim
Notably, the highly-respected Zhao took to addressing the unprecedented rise seen in trans-fee mining (or, trade-driven mining); an innovative mechanism adopted by crypto exchanges to distribute native crypto tokens – rather than just holding an initial coin offering (ICO).
Whilst admitting to having initially been interested by the concept made popular by FCoin (FT) owner/ex-CTO at Huobi, Zhang Jian, the Binance CEO recounted how “as [he] learned more,” he soon reached a conclusion that many concerned members of the crypto community have also arrived at: that trade-driven mining “are simply scams to sell [these exchanges’] coin(s), and not great innovations.”
Of course, this is not the first time that Zhao has made known his thoughts concerning trans-fee mining and the profit-sharing scheme that often accompanies it. Via their Weibo accounts, both he and fellow Binance co-founder, He Yi, have previously criticized the controversial “ICO in disguise” model that has risen to prominence thanks to not just FCoin, but exchanges like CoinBene (CONI), Bit-Z (BZ), CoinEx (CET), Coinsuper (CEN), and several others.
Business Booming for Binance
The push for market dominance appears fleeting for these new crypto exchanges, as the Binance juggernaut appears primed for yet another quarter of enviable expansion.
Whilst Zhao’s blog post discloses much more, the Binance leader foreshadowed announcements related to a host of Binance-run initiatives. This includes fiat-to-crypto exchange, Binance Academy, and Binance Chain – the highly-anticipated decentralized cryptocurrency exchange.
News will also be emerging in relation to some recent acquisitions made by Binance. Also teased by Zhao were more details regarding Binance’s ownership stake in a bank. Something, he admitted, he “didn’t plan before.”
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