thecoinrise.com
The biggest crypto exchange in the world, Binance, has recently announced the launch of a Soulbound Token on the BNB Smart Chain called Binance Account Bound (BAB), strengthening its efforts for regulatory compliance.
The first-ever Soulbound Token, Binance Account Bound (BAB), will be built on #BNBChain
The innovation could pave the way for a flourishing Decentralized Society on BNB Chain.
Find out more about the exciting development here ⤵️https://t.co/gS4CmExrOp
— BNB Chain 🔶 (@BNBCHAIN) August 1, 2022
Binance brings this decentralized solution to the obligatory requirement of KYC on the exchange platform with the aim of identifying the wallet holder on the blockchain.
Notably, Soulbound is a Web3 concept introduced by Ethereum co-founder Vitalik Buterin earlier this year, representing non-transferable, non-financialized tokens.
According to the official announcement, BAB “will certify the wallet owner’s verified user status on Binance and will also be available for use by third-party protocols.” As of now, the exchange has launched the token in pilot mode, only for mobile app users who can mint it in their wallets. Once minted and displayed, the BAB would clearly imply that the owner of the wallet is KYCed by the Binance.
Binance plans to implement more use cases in the future
Though the exchange has planned multiple use cases for the BAB token, the token will initially serve as KYC user credentials. Commenting on the launch, Binance CEO Changpeng Zhao stated:
“Soulbound Tokens will play a significant role in the way web3 credentials will work in a Decentralized Society.”
He added that the exchange will collaborate with the crypto community to explore new use cases for the BAB token by developing the “revolutionary vision of decentralized society.”
Third-party protocols may also use BAB tokens for a variety of functions, including voting, avoiding bots, airdropping NFTs, etc. As DeSoc use cases develop, Binance has also hinted at introducing additional BAB token types in the future.
The token’s release coincides with several reports claiming that the exchange platform has lost up to 90% of its consumers as a result of implementing mandatory KYC verification in August 2021. However, Binance clearly denied such rumors, which is confirmed by the massive surge in trading volume on the exchange.