Binance introduces BTCB a token pegged to Bitcoin on the Binance Chain
BTCB – Trading BTC on Binance Chain
Binance has been on a roll for the past year and its token BNB is the only cryptocurrency currently trading at its all-time high. Lots of IEOs and the announcement of Binance Chain make Binance the most innovative exchange currently in operation. It is therefore not really a surprise that the exchange keeps announcing exciting things to make it and BNB even more attractive for traders and hodlers.
On June 17th, 2019 Binance announced BTCB as a new token on its Binance Chain. This announcement was teased by Binance CEO CZ a few hours earlier by warning the public that 9001 BTC would be moving out of Binance’s wallet, that this was not something to worry about and that something great would be announced soon after.
A few hours later he tweeted the following:
What is BTCB?
BTCB, or Bitcoin-B, is a token based on the BEP2 token on the Binance Chain which will enable traders to trade Bitcoin on the Binance DEX even though Bitcoin itself is not a BEP2 Token. BTCB will be 100% backed by an equivalent amount of BTC and users will be able to easily exchange BTC for BTCB or vice-versa on Binance. The funds used to back BTCB can be audited by the public via a known wallet address for BTCB’s BTC reserves.
The initial deposit of 9001 to the public wallet address serves to provide liquidity once trading of BTCB on Binance Chain starts and more BTC will be added to keep liquidity high as needed.
How did BNB react?
The price of BNB responded positively to this announcement rising a few percent and the announcement of BTCB is generally perceived positively throughout the crypto community and experts have found little to criticize. Most analysts expect BNB to rise even further in the coming months stating that 40+ USD is certainly within reach.