Since the beginning of the year, crypto exchange Binance has become a leading market maker. Not all Changpeng CZ Zhao CEO decisions are successful, but as a true market leader, CZ launches new initiatives. For what purpose?
The recent revolutionary initiative to create a global Venus platform for launching local stablecoins has apparently not yet yielded results. This time Binance offers its users to earn money on lending. The exchange launches the Binance Lending service to increase passive income:
– Whether you’re a crypto HODLer trying to maximize gains or a frequent trader who wants to take a break from the action, Binance’s Lending products allow you to accrue interest & increase your token balance regardless of how the market moves.
The trial will be launched on August 28 with three cryptocurrencies: Tether (USDT), Binance Coin (BNB) and Ethereum Classic (ETC). A lending program for these cryptocurrencies will give traders a “guaranteed income”. Maturity date is September 11th. Annual interest rates are 15% for BNB, 10% for USDT and 7% for ETC.
Obviously, in 2 weeks the “passive income” of traders will be extremely insignificant. The meaning of the new initiative is to attract users to own coin and nothing more. This is a purely marketing campaign. In addition, it is very cheap in terms of exchange costs.
There is every reason to believe that great activity of CZ in recent months is caused by an accelerated decline in the price and capitalization of own cryptocurrency Binance Coin.
According to the CoinsMarketCap rating, Binance Coin has already dropping to 7th place.
Not so long ago, CZ challenged the creator of Ethereum, Vitalik Buterin. However, the second cryptocurrency is still out of competition, as Ethereum is a leading platform for smart contracts. While the Binance blockchain (Binance Chain) is not such a platform. Apparently, CZ is in dire need of money to develop the Binance Chain to be a platform for smart contracts too. In order to continue to poach projects from Ethereum at Binance Chain and to increase significantly BNB capitalization.
CZ, like most experts, obviously believes that the cryptocurrency market has entered the stage of consolidation, when only leading cryptocurrencies remain and the rest die out. BNB in 7th place will not survive – that’s why CZ intends to move it up, at least in the top three.