Binance Launches Its Own Mining Pool
On Wednesday, Binance CEO tweeted that the exchange plans to launch its own mining pool. The launch is scheduled for the Q2 of 2020. Binance has already hired the necessary employees, some of them former Bitmain employees.
This pic of the #BinanceMiningPool's first livestream just now is trending in Chinese speaking circles.
— CZ Binance (@cz_binance) April 1, 2020
So many things going on in the #Binance ecosphere. Hard to keep track when decentralized teams #BUIDL. pic.twitter.com/ULqLptjoGM
The head of the mining pool Sigmapool noted that the crypto exchange is already offering its potential customers “generous” bonuses and is trying to attract miners from China. Binance probably follows the example of its competitors, OKex and Huobi, which created their own mining pools back in August and September 2019. According to Blockchain.com, the pools of both exchanges are currently in the top ten.
Know when your
coins move
Alerts, real-time prices, and market news — all in one app
4.8 based on 40K reviews in the App Store and Google Play
It is believed that creating a mining pool is the cheapest and most popular way to add liquidity to exchanges. Igor RUNETS, CEO of Bitriver, shared his opinion on this matter:
«Launching a mining pool is a logical step for a crypto exchange. Both these businesses are software-based, so no additional professional skills are needed. The client base would largely overlap: many mining pool users are also clients of exchanges».
Image courtesy of Bitcoin Exchange Guide