The world’s leading cryptocurrency exchange Binance will officially start the token swap for its native coin today.
The BNB tokens on the Ethereum blockchain will be migrated to the Binance Chain which was launched a few days ago.
In addition to this, the public launch of Binance DEX will commence today, and the platform will be home to some cryptocurrency projects.
Binance Token Swap Will Begin Today
Binance announced last week that its BNB token swap would commence today. This latest development comes after the exchange launched its mainnet. According to an official Binance blog post, BNB holders storing the coin in wallets outside of Binance should ensure that their wallets support the token swap or move the cryptocurrency to the binance exchange.
The cryptocurrency exchange said that its native coin would be generated in the genesis block of the blockchain. While there will be an initial supply of 200 million BNB coins, the 11,654,398 previously burned on the Ethereum network will also be burned on Binance Chain. In addition to that, 48,000,000 tokens will be frozen.
Binance has commenced the process, with CEO Changpeng Zhao announcing yesterday that they had burned 5 million ERC20 BNB tokens. If things go as planned, then users will have the opportunity to send BNB withdrawal requests using their Binance Chain address. The token withdrawal will serve as a mechanism for converting the ERC20 BNB tokens to BEP2-based BNB coins on the Binance Chain, the blog post added.
Just burned 5mm ERC20 BNB, commencing swap to the real #BNB.
— CZ Binance (@cz_binance) April 23, 2019
The exchange warned investors that wish to keep their Ethereum-based BNB tokens that the coins will only be useful for a set period of time as all the tokens will be moved to the Binance Chain. They will not support the withdrawal of the Ethereum-based BNB tokens after today, Binance concluded.
According to a document published by Binance, the Binance Chain will focus on improving liquidity, performance, and ease-of-use. It will also allow users to transfer and trade blockchain assets while providing new possibilities for the future flow of cryptocurrencies and other blockchain assets.
Mithril, Red Pulse Phoenix, Joins Binance Chain
The Binance Chain mainnet was launched on April 18, and it has attracted some cryptocurrency projects. The team said the mainnet launch was the accumulation of the continuous development and improvement carried out on the blockchain and allied platforms since the testnet launch last February.
So far, a few cryptocurrency projects have declared an interest in migrating to Binance Chain. The first one was Mithril, which told its community members that the migration to Binance Chain would allow them to experience the speed, security, and user-friendliness of the new Binance DEX platform while also maintaining full control over their funds.
Red Pulse Phoenix and Atomic Wallet followed suit, with more crypto projects like Enjin rumored to be interested in joining Binance Chain. The migrating tokens were hosted on the Ethereum blockchain, and this has sparked debate within the crypto community that Binance Chain could provide fierce competition for Ethereum.
However, Changpeng Zhao has maintained that Binance Chain does not compete with Ethereum since it lacks features such as smart contracts. Rather, Binance Chain is challenging other cryptocurrency exchanges. He recently said that while he likes the positivity around BNB, ETH can do much more in terms of features and the cryptocurrency space can grow together instead of people dissing each other’s favored coins.
— CZ Binance (@cz_binance) April 22, 2019