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1\ I wouldn't be surprised if, in ~2 years, Binance were to become Ethereum's equivalent to Bitmain; a massive, centralized, self-serving agent that retains a lot of power.
Thread on BinanceChain 👇
Thread on BinanceChain 👇
2\ Binance has been successful because they were able to capitalize on (1) continuous speculative demand for tokens, (2) a shift in the regulatory landscape in China, (3) the issuance of a token that simulates (the illusion of) scarcity, and (4) an incredibly competent team.
3\ Given that the only "utility" of most Ethereum tokens at this point is as a medium of exchange, they would surely be better-off (especially when it comes to liquidity) by migrating to a centralized chain associated with a centralized exchange.
4\ The timing for BinanceChain is particularly good, since a lot of these tokens failed to deliver on 2017 promises and are grasping for relevance (or at the very least a partnership-announcement-pump). Many tokens are now in line to get the "migration pump" or an IEO.
5\ There is a lot of confusion around what BinanceChain *actually* is.
TL;DL: it's a network built with the Cosmos-SDK running on a centralized Tendermint-based DPoS.
What this means is that it's trivial to add an EVM module to it, and execute anything based on Ethereum.
TL;DL: it's a network built with the Cosmos-SDK running on a centralized Tendermint-based DPoS.
What this means is that it's trivial to add an EVM module to it, and execute anything based on Ethereum.
6\ The EVM will be necessary for Binance to successfully push its IEO strategy.
While this can abstract value from token issuance and trading on Ethereum, maybe it's exactly what it needs at this point to prove its worth beyond speculation.
While this can abstract value from token issuance and trading on Ethereum, maybe it's exactly what it needs at this point to prove its worth beyond speculation.
7\ While the intended use-case for BinanceChain is a DEX, I would characterize it as a DEX-ish, given its dependence on a centralized counterpart for liquidity, and its reliance on a centralized validation quorum.
8\ The rise of IEOs also shouldn't be surprising. Speculation continues to be the main use case for tokens, and this is an example of a secondary market (Binance) vertically integrating the primary market (Ethereum), where tokens are issued.
9\ In essence, this is Binance trying to control the entire supply chain of tokens.
