Binance Looking to Abuse Its Power

April 22, 2019   Bitcoin

Binance Looking to Abuse Its Power over Other Cryptocurrencies


Binance is currently the world's fourth-largest cryptocurrency exchange, and it is growing every day. Binance has its own coin, their own blockchain (called Binance Chain) and is slowly pulling in more and more users with more and more features that it is adding or planning to add. Its latest venture, a Singapore based DEX that allows crypto to fiat conversion has gotten a lot of good press earlier this month.

Bitcoin SV changed Binance


Binance was the first major exchange to delist Bitcoin SV (BCHSV) amid many controversies that plagued the Bitcoin Cash offshoot cryptocurrency. Binance has been a proud proponent of listing as many coins and tokens as possible, so the delisting of a coin as large as Bitcoin SV did comes as a surprise to many in the cryptosphere, and even they applauded the action.

The reason Binance gave for delisting was that BCSHV was no longer meeting the high standard that the exchange expects from coins that it decides to list. That sounds noble, but much of the listings that Binance has done in the past came from community suggestions. In fact, Binance is well known for having an active community that it leverages when deciding on which coins to list.

Three days ago, the news was greeted with approval and surprise that such a major player in the industry was willing to do something about the negativity that BCHSV was bringing to the community.  Today, however, Binance is showing a ruthless side that has been pioneered by Internet giants when they first discovered how much power they were able to wield. Google's delisting of websites was noble at first; then it leveraged that power to gain a stranglehold on the online advertising market.

Binance has become more than an exchange


Since Binance brought its main net online, its native token (BNB) has surged in value. It is the 7th largest token in market cap (though this varies day to day) and is used to lower the transaction cost on the Binance exchange, which was already lower than many competitors. Now with the delisting of BCHSV, it seems that the mini-Google/Apple/Microsft has awoken.

This ability to make or break smaller coins is not something that anyone cheering three days ago would have likely thought about. It seems that Binance is now trying to leverage this power that it has to force blockchain teams to migrate to its chain over Ethereum's. There are various whispers in the community that Binance has already started to use this power.

Projects that move to Binance Chain from Ethereum will get preferential treatment while those that stick with Ethereum will get the opposite. If a project on another blockchain does not keep up a trading volume of a million dollars a day at least, then it will be delisted. While no one has wanted to speak out publicly with these implied threats, there are many murmuring that Binance is starting to look decidedly less like a cryptocurrency and more like a modern Google. In the sense that Binance involvement can make or break a blockchain/crypto project.

It's not just with smaller coins. BitTorrent Token was launched via its Launchpad program and the marketing nous that Binance has helped the token reach unprecedented highs. It seems just like Google can make or break a website, Binance is slowly getting the power to make or break any cryptocurrency.

So while Ethereum is safe for now, that might not be the case in the future. The two have had a heated competition for developers and should Binance ever start winning that particular war, things could go downhill for cryptocurrency very quickly.

Author: Ali Raza for Crypto-Rating.com
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