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CZ says Binance Chain is not Ethereum killer

Maya Mandzikasvili | Apr. 22, 2019
CZ says Binance Chain is not Ethereum killer

April 22, 2019, | AtoZ Markets - Against the launch of the long-awaited new blockchain Binance Chain, the company’s CEO Changpeng Zhao(CZ) noted that Binance Chain is not Ethereum Killer. He clarified that even if some projects that run on Ethereum may want to switch to Binance Chain to benefit from its increased speed, this should not be considered a competition.

Binance Chain and Binance DEX in a brief

Last week an international cryptocurrency exchange Binance gave a hint through Twitter about upcoming company’s decentralized exchange - Binance DEX launch.

During one of his early interviews, Binance CEO Changpeng Zhao noted that the Binance DEX build on top of the Binance Chain will use Binance Coin as platform’s native coin.

Binance Chain in its turn will mainly focus on the simple transfer of assets and the release of tokens. In a recent interview at the Paris Blockchain Week, Binance CFO Wei Zhou claimed that alongside the main net for Binance Chain the company intended to launch the game-changing platform “by the end of the month”.

Binance lets users keep their ERC20 BNB for a limited time

Earlier crypto news media reported, that Binance, well known for its community-friendly activity, had decided to enable its users to keep ERC20 BNB. The company had also explained a method for retaining ERC20 BNB.

According to the Binance team, users could withdraw their ERC20 tokens from accounts to another Ethereum wallet or any other wallet that supports Binance Chain including Trust Wallet, and others before 7:30 AM on 23rd of April to keep those tokens. As per exchange, no withdrawal of ERC20 BNB from Binance would be allowed after 23rd of April. Deposits will be allowed, for a limited time.

Binance Chain vs Ethereum - media reacts

Although it remains unclear how Binance Chain and Binance DEX launch will go, quite overwhelming reactions have already appeared from certain media.

After one media channel tweeted a Binance-oriented article saying that “#Binance is Birthing its Own Decentralized Blockchain to Take on #Ethereum, CZ responded, that Binance Chain would not challenge Ethereum. However, Binance CEO added, that on the other hand, the company would challenge exchanges. Ch.Z. added that ETH can do a lot of things that Binance Chain cannot.

Other news portals, including one of the most well-known rating systems - Weiss Ratings - confirmed that Binance Chain is not Ethereum Killer. The company noted that the company’s newly launched project is not a competition to Ethereum, because  “ETH is a world computer, and Binance is a DEX.”

However, some Twitter users disagreed with Weiss Ratings opinion. In response to the Weiss Ratings statement, one Twitter user responded: “Yes, they are definitely competing with ETH for their token launch panel. This was largely the main driving force behind ETH demand in 2017, and now Binance is accepting it by offering more tokens (access to the largest exchange).

Another user added: “Binance is not a DEX. ETH is not a world computer."

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Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ, nor should they be attributed to AtoZMarkets.