Over the years, Binance has consistently proven to be one of the most innovative crypto exchanges in the world, and hence, it is no surprise that it is currently the biggest exchange in the world by trading volume.
The exchange has been very proactive in introducing new products and tokens that have gone on to become major players in the entire crypto ecosystem. In a new development, the company has announced that it is going to launch a new token that is 100% backed by XRP, the third-biggest cryptocurrency in the world by market cap.
The news was supposed to be revealed sometime later, but the Chief Executive Officer of Binance, Changpeng Zhao, revealed the whole thing on Twitter. The coin in question is meant for users who trade on the company’s decentralized DEX exchange and gives them the opportunity to invest in a crypto asset that is going to mirror the performance of XRP. He went on to state that the coin in question is not meant for trading purposes, but he believes that the launch of this new token could, in fact, lead to a higher demand for XRP tokens in the wider crypto sphere.
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Zhao said, “The supply would still be ‘in circulation’, just on the Binance Chain. They should be actively used for trading. Nothing changes from the supply perspective. Demand should increase though as there is more use-case/trading going on.” That being said, the more important question on the minds of most people in the XRP community is whether the launch of this token will have a positive price effect.
Despite the crypto rally in the first half of 2019, the performance of XRP has been a major disappointment for many. However, the launch of this new token from Binance is perhaps an indication that all is not going that badly for the world’s third-biggest cryptocurrency.
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