Binance Opens Cryptocurrency Exchange for Americans
Anything Binance does is well worth paying attention to regardless of which country you call home.
However, Binance’s recent decision to move away from funneling traders to its global site, and instead packing them into regionally-specific trading sites, is a new tack.
While the creation of geographically-specific exchanges is nothing new for Binance (UK and Uganda specific sites already exist), Binance.US serves a much larger trading contingent. By some estimates, Americans account for up to 30% of global crypto trading volume. If true, that metric outranks the trading volume of all other nations and regions.
Back in 2017, China previously had the highest estimated global trading volume, but after the Chinese BTC crackdown in September of the same year, Chinese trading went underground.
So, with Americans now in the hot seat when it comes to supporting global trading, what implications will Binance.US have for the cryptocurrency market in general?
Binance.US Ready for Boarding
Mystery surrounded the run-up to Binance.US’ launch in recent days. CZ, Binance’s head honcho, had gone uncharacteristically quiet just as the world was expecting details about whether the exchange’s launch was on target.
But, dependable ol’ Binance pulled through in the end, releasing exchange onboarding details on September 12, just as promised. On Wednesday, September 18, Binance.US will begin its first phase of boarding. When the opening bell tolls, BTC/ETH/XRP/BCH/LTC/USDT are open for deposits.
That doesn’t mean, however, that trading for those assets is quite ready yet. Binance will advise registered users of the exact trade opening date for the first phase.
Binance’s phase two is where things get really interesting. The light selection of tradable assets in phase one will quickly find themselves crowded as the second phase brings in a plethora of digital assets. Amongst the assets being considered for addition to Binance.US are ADA, ATOM, DASH, EOS, BAT, HOT, IOTA, XLM, and others.
Whereas questions have been raised about the wisdom of restricting the assets available to American traders, we have a different theory.
In all likelihood, the move will be a bullish one for Bitcoin and crypto in general. The reasoning is that currently, crypto investors are spread too thin amongst thousands of assets. Many of those assets have no future and are, in effect, lost investments.
Binance.US is proposing to add strong projects with proven track records, workable financial models, and vast liquidity. Consolidating wealth into these blue chip assets will bring traders away from riskier investments and into the light of better-established projects with a high degree of transparency.
As such, we expect the long-term ramifications of Binance.US to be notably positive. In a few years, we may even look back on this period as the moment went cryptocurrency took a major stride toward maturation.
Asset classes thrive with greater legitimacy. Taking crypto out of the shadows can only help the industry as a whole during this pivotal moment.