Malta-based cryptocurrency exchange Binance is set to enter the digital currency mining industry as according to April 1, 2020, tweet by Binance CEO, Changpeng Zhao (CZ), the trading platform is set to launch its first Bitcoin (BTC) mining pool.
Binance Enters the Crypto Mining Space
The cryptocurrency mining space at large, is set to become more competitive as Maltese crypto platform Binance recently made public its intentions to enter the Bitcoin mining space.
CZ further cleared the air on the tweet stating that it’s no April Fool’s joke:
The news was first reported by Russia crypto media publication Coinlife. According to the publication’s report:
“The company has already hired some professionals for this purpose, some of them former Bitmain employees. The launch is planned for the Q2 2020.”
Per another source, Jakhon Khabilov, head of the Sigmapool mining pool, Binance is already offering potential clients “generous” referral bonuses. The exchange giant has been reaching out to numerous China-based miners to promote its upcoming offering.
As for the potential incentive for Binance to enter the Bitcoin mining space, Alejandro de la Torre, Vice President, Pooling, said that one of the primary factors attracting giant crypto firms toward the mining industry is the liquidity. According to Torre, mining is the most economical way to add liquidity to exchanges.
Further, Igor Runets, CEO of Russia-based mining farm, noted that launching a mining pool is a “logical step” for a digital currency exchange. He said:
“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.”
Binance Expands Its Business Suite
While the world seems to have arrived at an indefinite standstill courtesy of the COVID-19 pandemic, a few industries and businesses in the world seem to be utilizing the time to expand their business footprint – Binance being one of them.
BTCManager reported on March 31, 2020, how Binance is set to launch a new cryptocurrency exchange in South Korea named Binance KR.
Further, unconfirmed reports suggest that Binance is also mulling the acquisition of crypto data analytics site CoinMarketCap for a whopping sum of $400 million.
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