Binance Coin (BNB) Price Continues Rise as Binance Opens Token Swap
A day after pointing to an imminent launch of the mainnet, Binance revealed details of the future of its central digital asset.
Binance has indicated the long-awaited mainnet launch, and announced the start of a token swap procedure, moving to a new type of digital asset. The new chain will also carry additional tokens which would migrate in the coming months.
Binance will issue new Binance Chain addresses to anyone with Binance Coin (BNB) balances on the exchange. Users will also be able to temporarily withdraw BNB until April 23, and use the asset on other exchanges as needed. But in the future, the ERC-20, Ethereum-based token will be phased out. Binance will support the ERC-20 token for a period after the mainnet launch, but users are encouraged to swap their tokens with the new addresses in the next 90 days.
The validators on the new network started producing blocks this April 18th, with some of the BNB holdings immediately swapped for testing purposes. The new asset will also find wide support with several wallets, pointed out Changpeng Zhao, the CEO of Binance:
The pre-announcement of the Genesis Block further helped to boost the prices of BNB. The asset rose to position 7 on CoinMarketCap, extending its rally above $20. As of 7:00 UTC on Friday, BNB traded at $21.65, on volumes above $330,000. BNB is already up more than 24% in the past week, rising significantly in the past quarter from lows under $4, making it one of the best-performing assets.
The new Binance Chain will use delegated proof-of-stake, similar to networks like EOS and TRON. This semi-decentralized approach ensures faster block propagation while affording security from attacks. BNB will not be the only asset on the network, as other projects may migrate their tokens, to make use both of the trading platform and a brand-new blockchain.
Mithril (MITH) was the first such token, and the news immediately boosted the market price. Overnight, MITH appreciated by more than 66% to $0.07, on a sudden spike from recent lows.