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Cryptographic Exchange Binance launched its customized chain chain solution, Binance Chain, on April 18th. But this initiative could threaten to burn a hole in the Ethereum pocket.
The Gem Club, a market analysis and trading newspaper based on Telegram, said on Thursday that new cryptocurrency projects had no advantage in choosing the Ethereum channel rather than the Binance channel. The analyst noted that the new custom channel could replace Ethereum with regard to the list of projects and the issue of their tokens.
"The NBB is going to have a devastating effect on ETH and send it back to double digits," wrote the Gem Club. "The choice of ETH on the Binance channel has almost no benefit, apart from a little more decentralization. The projects moved to the Binance chain will receive a ton of attention, lists, [and] more."
$ BNB will have a devastating effect on $ ETH and send it back to double digits
There is almost no benefit to choose $ ETH on the Binance channel outside a little more decentralization. The projects moved to the Binance chain will receive a ton of attention, lists, + more …
– Gat (@TheGemClub) April 18, 2019
This forecast is in line with the impressive performance of the NBB over the past year. The seventh largest cryptocurrency has generated over 80% returns for its investors over the past 365 days. It became the only cryptographic asset to have rechecked its highest historical level, while the other most important pieces remained far from having reached a similar level. BNB's deflationary supply model has also helped make it the most attractive investment for both short- and long-term investors.
BNB is the only crypto to reach its highest level today.
The next line is down 23% from ATH. Pretty amazing https://t.co/WiAQqZIfP1
– Joseph Young (@iamjosephyoung) April 19, 2019
As of this Friday, BNB's total return on investment was 9,000% since its launch.
The migration begins
Binance announced that it would execute its main network swap on April 23. The event would encourage BNB holders to exchange their Ethereum-based ERC20 balances for enhanced native BEP2s based on the Binance channel. The migration would see many of the ERC20-compatible NBB holders moving their base to BEP2-compatible portfolios, including everyone from individuals to full-fledged projects. And those who want to stay with the Ethereum blockchain will send their BNB balances to the standard ERC2o wallets.
Decentralized Social Media Platform Mithil is the first blockchain project to be attracted to Binance Chain. The startup had previously released its MITH chips on the Ethereum channel chain, but had found better prospects in Binance Chain, which offers a full decentralized exchange. This transaction allowed Binance to add MITH / BNB and MITH / USDT pairs on its trading platform.
$ MITH will be one of the first token migration projects on @Binance_DEX. Our community thanks you for your support! https://t.co/zvG7tvtL2b
– CZ Binance (@cz_binance) April 18, 2019
The addition of MITH to the Binance Exchange allowed the symbolic rise of 25.75% in just 24 hours, indicating that investors believed that migration was a bullish movement in the short term.
After Mithril, Atomic Wallet also decided to move from Ethereum to Binance Chain. And now, rumors that ENJIN Coin is thinking of migrating to Binance Chain are all about social media. Enjin's CEO, Maxim Blagov, said earlier in a question posed that their next important feature would have something to do with Binance Chain.
Conclusion
The fact that large projects leave Ethereum for Binance Chain could encourage the former to face intermediate losses. But, at the same time, it is essential to understand that Binance Chain does not have smart contract functionality, which means that projects seeking decentralized contract settlement technology would prefer to stay with Ethereum at all times.
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