Binance, a Malta-based cryptocurrency exchange is currently testing a British Pound stablecoin which will be backed by the exchange’s own blockchain platform, Binance chain. On the other hand, Justin Sun, Tron’s CEO won the 20th-anniversary charity lunch hosted by Warren Buffett, a billionaire investor after a bid of $4.57 million and Changpeng Zhao, Binance’s CEO who was invited said he will be unable to attend the lunch.
Cryptocurrency Enthusiast Notifies Public of Binance’s Issuance of BGBP
On June 3, 2019, CryptosBatman, a cryptocurrency enthusiast brought it to the attention of the public that Binance may have issued a British Pound stablecoin ($BGBP) on Binance chain. The Twitter user added that this could possibly prove how big Binance and Binance chain are, and even help to spike the price of the exchange’s own digital asset, Binance Coin (BNB).
While commenting on the tweet, Changpeng Zhao (CZ), Binance’s CEO clarified that $BGBP is in its testing phase and only £200 worth of coins have been minted so far. “Slowly and Surely”, he added, which leaves the impression that the number of coins in circulation will be increased with time.
Launch of $BGBP Could Potentially Impact on BNB’s Price
Comments from Twitter users show that a number of crypto enthusiasts expect the launch of the stablecoin to positively impact on BNB’s price. The latter can be tied to CZ’s comment while in a Twitter Ask Me Anything (AMA) session on February 7, 2019. He said BNB will be used to pay transaction fees on Binance chain and it can be compared to the use of ether tokens to pay gas fees on the Ethereum network.
On the other hand, Binance has made headlines of recent for many reasons. Notable among this is the exchange’s hack on May 7, 2019, where about $40 million worth of 7,070 BTC were stolen. At the time, CZ had hinted on a possible blockchain reorganization where transactions could be reversed in order to restore the stolen assets.
However, the suggestion was not taken in good faith by the cryptocurrency community who believe that one of blockchain’s selling point is its immutability which prevents its stored content from being changed or reversed easily. Nonetheless, the CEO later revealed that after speaking with various parties, the Binance team have decided not to pursue the re-org attempt.
He also apologized for his earlier proposition by saying:
“Given how much I talk, I sometimes say the wrong stuff, dirty words like ‘reorg’, for which I apologize. It is my strong view that our constant and transparent communication is what sets us apart from the “old way of doing things”, even and especially in tough times.”
