Binance Listing Gives Short-Term Boost to Tezos (XTZ)
The long-awaited listing arrived at a time when markets are taking another downturn, with altcoins looking shakier.
Tezos (XTZ) finally gained a Binance listing, after years of expectations and campaigning. The network, which launched with significant problems, promised to revolutionize distributed computing.
The Binance listing helped XTZ get a short-term boost, to trade above $1.11. Later, the asset retreated to $1.09. The actual listing failed to lift XTZ above the peak of trading in July, but still boosted activity.
The chief expectation for XTZ is that the coin has never gone through a significant rally, unlike other platform coins. But XTZ has yet to prove it can attract investors that are reluctant about the future of altcoins.
The Tezos network is also rather inactive, with the Tezos block explorer showing just 2,800 transactions in 24 hours. This is a highly limited transaction count, in comparison to other networks promising free and limitless transactions plus distributed apps.
However, the Tezos project has long-term intentions and a Foundation to foster adoption and development. The project held one of the biggest ICOs in 2017, and despite the delay, faces the possibility for a long runway:
The new Binance listing will be only available to international traders. The XTZ asset faced problems with its status as an unregistered security. Initially, “tezzies” were issued as a “sign of goodwill” after the ICO, and saw limited trading, with prices peaking above $5.
Later, the mainnet launch led to the creation of the new XTZ asset. The case of XTZ resembles that of Ethereum (ETH), which was deemed an unregistered security during the ICO, but now has pure utility status. The problem with XTZ is the payout of a reward for “baking”, which may be considered a form of a dividend.
Still, XTZ is available on Coinbase, with the potential that the newly launched Binance.US may also add the asset.
The staking process for XTZ has a relatively high annualized return rate of 7.08%. This creates significant inflation for the network. Binance’s CEO Changpeng “CZ” Zhao hinted at new developments for the Tezos project:
Recently, Binance has started opening various lending mechanisms for altcoins, though it is early to know if XTZ would be added. Binance will also have to offer staking rewards, as the network inflation for XTZ is also quite high.