Binance Launches ‘Innovation Zone’ to Justify DeFi FOMO Listings

Leading spot exchange Binance has created an “Innovation Zone” to list newer tokens.

“The team has created the Innovation Zone, which will allow users to trade newer token offerings from the comfort of their Binance account, while at the same time protecting less suited users from being exposed to the “risk” that comes with trading them,” wrote the CEO Changpeng “CZ” Zhao on Monday.

Whatever this means, you ask? Just that Binance will list all the DeFi tokens as fast as it can, as it has been doing.

The Innovation Zone was introduced along with the listing of SUN, Justin Sun’s DeFi venture.

What can we do?

The clarification came in the light of the fastest listing of UNI token by a centralized cryptocurrency exchange.

As we reported, exchanges rushed to list the highly anticipated governance token of DEX Uniswap. While Coinbase, Poloniex, FTX, Kucoin, OKEx, and Huobi all jumped in, it was Binance that was the first to induce the FOMO listing.

It wasn’t the first time either, the SUSHI saga earlier this month pointed many accusing fingers on Binance as well.

At that time, Zhao tweeted, now deleted, that if they don’t list DeFi coins, “traffic goes to other exchanges, and we become … obsolete. We provide access to liquidity; we don’t force you to buy.”

As the DeFi craze continued to roar, exchanges continued to take advantage of this opportunity by listing these DeFi tokens as fast as possible despite having a framework in place that requires significant and diligent efforts to review a project before listing.

CZ says so himself this time, “We don’t list every coin under the sun. We have a selection process that is often viewed as overly strict, especially by project communities that haven’t been listed yet.”

But with the DeFi sector so hot now, Binance has the dilemma of listing the token quickly or wait until the project is proven.

We’ll Continue to list DeFi coins!

According to CZ, unlike 2017, Binance is “bigger and has a wider user base” now. Not to mention, getting a listing on top exchanges is a time consuming and hard process with many, like Digibyte, complaining about exchanges asking for a listing fee.

The tables have turned for sure.

In the latest announcement, CZ argues that not only Binance needs to “stay competitive” by listing popular coins, but it is also hard to find what is good or bad as everyone’s definition is different.

“So, in keeping on-trend and delivering what our users (you) want, we (Binance) will continue listing DeFi coins,” he said.

Also, trading on DEX requires a “high degree of capability and understanding.” With Innovation Zone, Binance wants to provide you a “safer space for accessing newer tokens,” which have higher volatility.

You also don’t have to remember your password/seed phrases or suffer the loss in case of a wrong transaction as CZ will take care of it.

So, how exactly does this zone work?

If in the event of incurring losses, you answer it is your fault, and you are responsible because “it was a choice that you alone made” and the likelihood of incurring losses to your principal capital in the zone is less than 50%, you get a green light to trade.

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Author: AnTy

How will Bitcoin Halving Affect Miners’ Profitability

  • To maintain healthy profit margins for miners, a rising hashrate is needed while newer and more efficient mining devices to reduce mining costs
  • Before halving the gross cost to mine one BTC is $6,851 and after halving $15,062 and much lower for large scale commercial mining pools like Bitmain

Bitcoin reward halving is less than 100 days away, scheduled to occur in Mid 2020 that would see the new issuance supply of bitcoin declined by 50%. With this supply reduction, there would be changes in the breakeven cost to mine bitcoin before and after the halving.

Digital currency research company TradeBlock tries to find “bitcoin mining profitability following ‘The Halving’ and its indication for price in its latest blog.

Maintaining healthy Profit Margins & Reducing Mining Cost

In 2019, commercial mining operators were operating at “healthy profit margins,” as the price of BTC jumped throughout the year.

The network hashrate meanwhile, continued on its record run, making new highs each week as the number of resources committed to secure the network rises. But as the resources rise over time, efficiency and mining costs rise as well.

To maintain healthy profit margins for miners, a rising hashrate is needed to correspond with a rising bitcoin price while to reduce mining costs, newer and more efficient mining devices are continuously being developed.

Miners expecting the price of bitcoin to rise to higher levels?

The decentralized peer-to-peer network is secured by miners who receive 12.5 bitcoin for mining each block. Currently, 144 blocks are mined on average per day that results in 1,800 new BTC per day. After the halving, the mining reward will decline to 6.35 bitcoin per block, resulting in 900 new bitcoins mined per day.

Before the halving, the gross cost to mine one BTC at current levels with current device types are estimated by TradeBlock at $6,851. Meanwhile, the BTC price is trading at $9,800.

After the halving, assuming the hashrate will continue to rise over the next three months at the same rate it has been for the past three months and commercial operators transition to newer models for 30% of their rigs, the cost to mine one BTC would be $15,062.

If instead of rising to ~135,882,500 TH/s on halving day, the hashrate remains flat, the cost would fall to $12,525. However, for large scale commercial mining pools like those operated by Bitmain, the largest manufacturer of mining rigs, will have even lower breakeven cost.

The breakeven costs, TradeBlock says indicates miners continue to increase towards which suggests miners are “likely expecting the price of bitcoin to rise to higher levels,” above $12,000-$15,000 around the halving to continue to generate a profit. In contrast, it is also likely they will reduce resources following the halving that will result in a decline in hashrate as profitability falls.

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Author: AnTy