Changpeng Zhao, CEO of Binance, confirmed that the cryptocurrency behemoth is adding a mining pool to their product basket. This news comes less than two months before Bitcoin’s third halving event. No, this isn’t an April fool’s joke.
Binance Announces Mining Pool
The crypto exchange is already a validator for various Proof of Stake networks. Now they’re adding a mining pool for Proof of Work coins, like Bitcoin.
Binance is adding yet another service to its product line, and in doing so, is signaling its ambition to continue expanding within the cryptocurrency industry. In the last two days, Binance has allegedly struck a deal to acquire CoinMarketCap.
Both moves bring about centralization concerns, as Binance and Coinbase jointly operate a lot of vital infrastructure for the cryptocurrency industry.
Binance has an immediate edge over competitors because of its existing user base of over 15 million accounts. Gradually, Binance is turning into a one-stop-shop for retail investors.
From spot and derivatives trading to staking and mining, and even a debit card, Binance has become one of the most important companies in crypto.
Yes, there is a #BinanceMiningPool coming soon. 👀
— CZ Binance 🔶🔶🔶 (@cz_binance) April 1, 2020
With the halving just a few months away, Binance, led by an unwavering Bitcoin bull, might be joining the mining game to take advantage of BTC price appreciation that is estimated over the next two years.
BNB stands to gain a lot from Binance’s rapid expansion plans. If the company continues to use a portion of revenue to market buy BNB and burn it, it could lead to strong price appreciation as revenue grows and supply shrinks.