On April 1, 2020, the CEO of Binance exchange, Changpeng Zhao (CZ) confirmed the crypto startup is set to roll out its own BTC mining pool. CZ sent out a tweet on April fool’s day that affirmed the Binance BTC mining pool is coming soon.
The crypto exchange is already a validator for various Proof of Stake networks. Now they’re adding a mining pool for Proof of Work coins, specifically Bitcoin.
Binance is adding yet another service to its product line, and in doing so, is signaling its ambition to continue expanding in the crypto industry. Just recently, on March 31, 2020, Binance exchange purportedly struck a deal valued at $400M to acquire crypto data aggregator CoinMarketCap.
With these moves, Binance is set to gain an undeniable edge over its competitors, especially because of its existing user base of more than 15 million accounts.
Bit by bit, Binance exchange is turning into a one-stop-shop for retail crypto investors across the globe and setting itself up to become one of the most important companies in crypto.
Launching a BTC Mining Pool is Logical For Binance
By announcing the imminent launch of its own mining pool, Binance has joined top exchanges such as OKex and Huobi in dedicating resources to mining ventures.
OKex launched its own mining pool in August 2019 while Huobi also launched its own in September that same year. Data from Blockchain.com shows that both exchanges’ pools are currently counted among the top 10 pools producing the most blocks in the Bitcoin blockchain.
Several industry players have shared their ideas about Binance’s move. Notable among them is Bitriver mining farm CEO Igor Runets who believes launching a mining pool is a logical step for Binance, as most BTC mining pool users are also clients of exchanges.
Similarly, the CEO of the Sigmapool mining pool also believes that it makes sense for Binance to join the mining game, as the exchange has already been reaching out to some miners in China to promote its imminent mining service.
Binance Expands its Portfolio
Binance is the largest crypto exchange in the world, and the company is doing everything it can to bring in new users to its platform. They are doing this by launching a constant stream of new products to meet the global and local markets. These new products are designed to allow customers to make a deposit, take out loans, and earn interest and rewards from their crypto holdings.
Binance has also been aggressively acquiring other crypto startups such as the exchange BxB Inc., as it looks to establish its dominance in Asia and other parts of the globe.
With the 3rd BTC halving just two months away, Binance, led by a dogged Bitcoin bull, could be getting into the mining game to take advantage of BTC value appreciation that is predicted over the next two years.