By
Chimamanda U. Martha
April 25th, 2024
Binance decided to re-create XRP on its own blockchain – Binance Chain, and pegged it to several cryptocurrency pairs on Binance DEX.
Ripples’ XRP has been pegged to several cryptocurrency pairs on Binance DEX independently of Ripple‘s Mainnet. Binance CEO Changpeng Zhao indicated this in a tweet:
This was suppose to be announced a bit later. But such is the nature of blockchain project, #transparency. Can't hide anything.
Well, there you go, #XRP (on chain pegged) on #BinanceChain and @Binance_DEX.
Guess which flood gates this opens up? https://t.co/Mxpm5jZCfz
— CZ 🔶 Binance (@cz_binance) October 3, 2019
Binance Dex, the platform for the execution of the traded pairs which occur on the Binance Chain, added the XRP-BF2 asset as the first-of-a-kind pair for Ripple’s token which doesn’t have a tradeable pair within the crypto space. With only 10,000,000 of the new asset in circulation out of 1,000,000,000 which were minted, the asset provides significant value for traders who wish to trade some form of XRP without having to get unto Ripple’s Mainnet. It also gives hedging capabilities to traders willing to balance their positions on other open positions where XRP may be involved.
The creation of this new asset solves many problems which XRP currently faces as the cryptocurrency encounters compatibility problems with blockchain-based tokens as XRP runs on Ripplenet using the Ripple Protocol Consensus Algorithm (RPCA) making the creation of cross-platform solutions to become more difficult than usual.
Binance Creates the Future of Trading
This year, Binance has come up with quite several unique offerings to the markets which will pay off; though not in the way and manner many would have hoped.
Earlier this year, the genesis block of Binance Chain was launched with the issuance of its native Binance Coin (BNB) token on the blockchain. This was the beginning of great things ahead as Binance DEX also went into operation in the same month allowing trading of pairs on a decentralized basis using automated system matching as the process for the execution of orders.
Earlier this month, Binance announced the resumption of trading activities in the United States indicating the exchanges’ renewed interest in the American market. Binance also launched its staking platform which offers rewards to depositors of about eight different cryptocurrencies for placing a stake on its platform. This trading product produces a paradigm where the placement of cryptocurrencies functions very much like overnight swaps on forex trading platforms and other securities where interests are offered for active placement of deposits on such platforms.
These innovations alone have made the cryptocurrency exchange to be miles ahead of other cryptocurrencies in terms of how synthetic assets can be used to boost liquidity in already crowded cryptocurrency markets.
As of the time of filing this report the XRP’s price stood at $0.253 with a 1.67% price increase in the last 24 hours.