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February 2011

Binance Begins Dedicated Staking Platform to Earn Rewards

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Binance

Binance

One of the most important factors behind the growth of the cryptocurrency space is the existence of mega crypto exchanges. It has made it possible for more and more people to get involved in space and the biggest one is Binance.

Today, the company made another landmark announcement. The crypto exchange announced today that it has launched an exclusive staking platform and it will allow its users to earn exclusive rewards. Users will be able to store their digital coins on the staking platform, and in return, they will be awarded rewards. It might be regarded as something that is akin to earning interest by keeping money in a bank.

This is quite an inventive platform that has been launched by Binance. The official announcement for it was made on Thursday this week. Due to the availability of the platform, users would not need to meet the minimum staking requirement and the time periods that are stipulated on some other platforms.

At this point in time, only a limited number of cryptocurrencies are going to be supported by Binance’s staking platform. The tokens that are currently supported include Ontology, Stratis Neo, Qtum, VeChain, Algorand, Strat, Komodo, and Stellar Lumens.

>> Stellar (XLM) Witnesses Buying Interest Despite the Crypto Slump

It goes without saying that it is another important development in the further strengthening of the cryptocurrency ecosystem. Although staking platforms are available, an offering from one of the biggest crypto exchanges in the world like Binance is definitely a huge development. It could eventually encourage more users to use it in anticipation of the rewards on offer.

Changpeng Zhao, the Chief Executive Officer of Binance, explained the whole thing quite succinctly in a tweet: “You literally don’t have to do anything. Your funds on Binance automatically participate. You can still trade as you normally would.” It now remains to be seen how many users the company’s staking platform can attract.

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Japan’s Crypto Exchange Coincheck Cuts Margin Trade Limit

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Coincheck

Coincheck

The crypto space has evolved at a breakneck pace over the past few years, and much of it is due to the fact that cryptocurrencies became a much more popular investment as well as a trading vehicle all over the world. While trading was always a big thing, the introduction of margin trading changed the game altogether, and many exchanges all over the world started providing the service.

Key Announcement

Some of the best traders in the crypto space are now engaged in margin trading. That being said, it was always going to come under regulatory scrutiny. In a new development, Japanese cryptocurrency exchange Coincheck announced that it was going to reducing transaction size in such trades by 20% due to regulatory requirements.

Prior to this announcement, margin traders had the freedom to borrow five times their total holdings, but following this move, they will only be able to borrow four times their total holdings. The crypto ecosystem has grown quite quickly in Japan, and the rules are quite stringent. The sector is overseen by the Japan Virtual Currency Exchange Association (JVCEA), and the move is a direct consequence of the rules made by the association. Coincheck announced the new update in a blog post, and it stated that in order to be in compliance with the rules and regulations, it had to reduce the margin trading limit.

>> Chinese Cryptocurrency is Not Coming Anytime Soon, Says Reports

Moreover, the exchange also stated in its post that if a customer places new leveraged trades, then those trades would be canceled. Coincheck went on to state that customers could also stand to make losses if the margin maintenance rate drops below 50%.

The larger point about this development is that it remains to be seen whether this leads to a reduction of leveraged trades on the platform or not. In the initial period, something of that nature might happen, and it would be interesting to see how the exchange manages that period.

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Stablecoin Market is Showing Signs of Solid Growth

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stablecoin

stablecoin

The cryptocurrency market has possibly been one of the most innovative things to have emerged over the past decade or so, and during the course of that period, it has taken the world by storm.

However, as everyone knows, ecosystems evolve, and that is what has been happening with regards to the cryptocurrency ecosystem as well. Eventually, the establishment of exchanges allowed millions of people to buy and sell cryptocurrencies with a few clicks. It was the brainchild of crypto exchanges to introduce a new digital asset class, which was to be backed by fiat currency and came to be known as a stablecoin.

Stablecoins are Rising

While crypto experts and enthusiasts never really took these coins seriously, it needs to be pointed out that the market for stablecoins is rising. The fact that they are backed by fiat currency makes stablecoins far more stable (hence the name) than other coins. Users can buy a bunch of stablecoins whenever they feel that the market might be getting a bit too volatile. Tether is one of the most popular stablecoins in the crypto space, and over the years, it has grown in popularity as more and more exchanges have started using it as a means to allow seamless trading.

>> Dogecoin Surges 37% on Binance Listing, Major Moves for Altcoins

Tether is backed by the United States Dollar, but there are other stablecoins backed by other fiat currencies. For instance, there is the eToro, which is backed by the British Pound, and there is TrueGBP, which was established by TrustToken. More and more crypto enthusiasts and traders are now getting into these kinds of coins in a big way, as exchanges continue to create such coins in order to bring some stability to the market.

However, as the crypto market continues to grow this year, experts believe that the stablecoin ecosystem will also continue to grow.

What do you think about the prospectus of stablecoins?

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