Binance CEO: Some Major Ethereum-based ERC20 Tokens Are Switching to Binance Chain

Binance CEO: Some Major Ethereum-based ERC20 Tokens Are Switching to Binance Chain

Ethereum chain

Binance CEO Changpeng Zhao recently made it known that some major Ethereum-based ERC20 tokens are already making plans to switch from the Ethereum chain to the Binance chain.

The Binance Chain

The Binance chain which is expected to get launched early this year is said to have a faster transaction time and cheaper fee than Ethereum. According to Zhao, tokens that are strictly currencies and don’t utilize any additional smart contract features on Ethereum will find the Binance chain more flexible. Also, with the soon to be launched Binance DEX, tokens built on the Binance chain will be easily added to the exchange.

“If you’re only using ERC20 as a token, there’s no real reason for you to stay on Ethereum. Whereas on Binance Chain, you get one-second transaction confirmations. One confirmation is final. So it’s a much faster chain and the transaction fees are cheaper. So there’s a lot of advantages for them to move to Binance Chain, which uses a native DEX…If you’re using some other feature of the smart contract on Ethereum that’s not token issuance related, then we don’t support that on Binance Chain initially. So then, you’ll probably have to stick with ERC20.” Zhao explained in a recent release.

Plans for the Year

Speaking on Binance’s plans for the year, Zhao made it known that the exchange is going to be launching more fiat-to-crypto exchanges. The exchange has recently launched a new exchange in Jersey. The new exchange is designed to serve British and European users.

“We do want to build five to ten fiat onramps around different parts of the world, hopefully spreading out from different continents. So that’s one of the goals for Binance this year, which is to get the fiat onramps as well. We see that that’s a limiting factor for the industry growth right now. So we want to help the industry grow and the crypto market.” Zhao explained.