There had been rumors churning for quite some time about Binance working on a decentralized crypto exchange (DEX), then in May it finally announced that it was working on one. Earlier this week, Changpeng Zhao – CEO of Binance – posted a sneak peek video demonstration of the new decentralized exchange. The video is rather barebones and is cam footage of a developer showing the basic features. There is still no GUI, but the video is an exciting step towards the launch of what could become the most popular DEX.
A first (rough, pre-alpha) demo of the Binance Decentralized Exchange (DEX), showing issuing, listing and trading of tokens. All cli based, no GUI yet. A small step for #BinanceChain, a big step for #binance. https://t.co/2aXkR0gclP
— CZ (not giving crypto away) (@cz_binance) August 9, 2018
The Future of Binance is Unclear
After the video was published, the twitter sphere inundated Zhao with questions. The most notable however was what will happen to centralized Binance once its DEX is live. Zhao simply replied with “we will let the market decide.” While a DEX is the next generation of crypto exchanges, they somewhat lack the ability to deposit fiat currencies. This means that centralized exchanges will still have some part to play, or it could be Binance preparing for the future where fiat no longer exists as the main form of currency. Until Zhao and the team at Binance clears this up, the future of centralized Binance hangs in the balance.
We will let the market decide. I expect they will co-exist for some time.
— CZ (not giving crypto away) (@cz_binance) August 9, 2018
No Confirmed Release Date
Unfortunately, Zhao didn’t elaborate on a potential release date for the new DEX, but he did say that the team is working aggressively towards completing it. From the video, it is very clear that the platform is still in its early development stages and thus has a long way to go before it can be deployed to the public.
Decentralized Exchanges are the Future
Many high-profile figures within the crypto industry have praised the DEX concept, due to the fact that it is more secure and of course not controlled by a company. Previously Vitalik Buterin had said he hopes centralized exchanges burn in hell as much as possible. Many within the crypto world stand firmly against centralized exchanges, but they do play a crucial role in the digital currency landscape. They serve as a gateway between the fiat world and the crypto world. Unfortunately. Binance’s new DEX came under fire, with some users calling it marginally decentralized. This is due to the fact the exchange will charge around 400 BTC for a new token to be listed and the exchange still holds the power to freeze or block trading on a specific token – that isn’t exactly decentralized behavior.
Fortunately, for any new tokens that want to get listed on a major exchange, they now have their own platform – tokens.net. In an exclusive interview with BitStarz News, Damian Merlak – Bitstamp and Tokens founder – said, “if there are going to be many new ICO projects and a need for tokens to change hands, then all existing – and future holders would need a platform where they can interact with each other.” This was his motivation to create the ICO trading platform.
Binance is a major player in the crypto exchange industry, so its new DEX will only cement its position further. Hopefully they can ensure that all smart contracts are secure and bug-free, as Bancor suffered a $23.5 million loss due to a hack involving a smart contract. There is still no official news as to the launch date for this new DEX, but we hope to see it go live before January 2019.
