Binance Follows Peers as it Plans First Own Bitcoin Mining Pool

Binance Follows Peers as it Plans First Own Bitcoin Mining Pool

Binance, the world’s largest crypto currency exchange, announced plans to launch its own Bitcoin (BTC) mining pool, which will be the first for the popular crypto exchange. The Russian crypto news publication Coinlife broke the news on Tuesday and was later confirmed by three sources in the mining business. Binance CEO Changpeng Zhao tweeted Wednesday about the pool.

“The company has already hired some professionals for this purpose, some of them former Bitmain employees. The launch is planned for the Q2 2020,” Coinlife wrote.

Jakhon Khabilov, head of the Sigmapool mining pool, said Binance is already offering “generous” referral bonuses to potential customers, as it has reached out to some miners in China to promote the forthcoming new service.

The exchange follows the lead of its peers, OKex and Huobi, as they launched own mining pools, respectively in August and September 2019. According to Blockchain.com, both exchange pools currently rank among the top 10 pools that produce the most blocks in the Bitcoin blockchain.

Alejandro de la Torre, Pooling’s vice president, currently number two most popular mining pool, says liquidity is the key motivation for exchanges to get into the game of bitcoin mining: mining is the cheapest way to add exchange liquidity, he said.

Logical Step for Binance

Igor Runets, CEO of the Russian mining company Bitriver, believes that the launch of a mining pool is a logical step for the crypto exchange saying “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.”

Cryptolydian reported earlier that, Binance announced it will host a trading competition where participants could compete in teams and win a prize pool in BNB tokens of up to $1 million.

The tournament will take place between April 10 and April 25, according to the announcement, and will take place in two ways: daily profit tournaments for the ROI and for the USDT team overall.

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Abdulhay Mahmoud 414 Articles
Abdulhay Mahmoud is a creative writer with over 15 years of experience in journalism, translation, and investor relations. He has B.A in English and Literature from a reputable University. He recently became a contributor at Cryptolydian.com to fulfill his thirst in reporting digital coins and blockchain-related news, an interest was built over the years.