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Binance will start lending to mining companies. How does Binance lending work?

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how does binance lending work

Binance Pool, the mining pool of cryptocurrency exchange Binance, has launched a $500 million fund to support cryptocurrency mining businesses. It was reported on the official website of the trading platform. How does Binance lending work?

How to use Binance lending? 

As part of the new initiative, Binance Pool will issue loans for up to 18-24 months at an annual interest rate of 5-10%. Binance Pool intends to launch cloud services for mining cryptocurrencies and has already begun searching for relevant partners. How to use Binance lending? The exchange said that it intended to support only those mining firms that fit certain requirements, but refused to publicly specify them.

In the summer it became known that many mining centers were under the threat of closing, as cryptocurrency miners had difficulty meeting their credit obligations. According to Ethan Vera, co-founder of the mining firm Luxor Technologies, many lenders during the crisis were concerned that they issued too many loans against the security of the mining devices themselves. He estimates that firms have lent a total of $4 billion.

  • Earlier, Canadian crypto-mining giant Bitfarms abandoned its HODL strategy and sold 3,000 BTC for $62 million, citing the market crisis and declining profitability.
  • Mining company Core Scientific sold 7,202 BTC. It now has 1,959 BTC and $132 million in fiat on its balance sheet. Founded in 2017, Core Scientific is considered one of the largest miners in the world.
  • In June, Argo Blockchain sold 637 BTC at an average rate of $24,500. At the same time, the company only managed to mine 179 BTC during the same month. As of June 30, Argo Blockchain had 1,953 BTC left, 210 of which were equivalent to bitcoin.
  • Compass Mining cut its staff by 15% in July and cut salaries by 50% for top executives due to operational difficulties.

Earlier, we reported that bitcoin will fall just 67% in the next bear market.

Cryptocurrency

Poloniex rolled back support for stablecoins on Binance Smart Chain (BNB Chain)

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Crypto exchange Poloniex (one of the key investors of which is the creator of the ecosystem TRON Justin Sun) stopped supporting stablecoins on Binance Smart Chain (today – BNB Chain). Poloniex tech support announced this in a tweet.

Tech support later deleted the tweet, but it is still viewable on the websites that linked to it. When trying to open an announcement about the termination of support for Binance Smart Chain stablecoin, the exchange’s website takes you to an authorization form.

According to the saved copy of the announcement, the exchange stopped supporting USDT, USDC, TUSD and BUSD based on the BEP20 protocol back on November 24. However, support for other BNB Chain-based tokens remained in place.

The exchange said that it stops not only deposits but also withdrawals of stablecoins on BEP20, but is ready to convert assets to their counterpart on other networks: Ethereum (ERC20) or TRON (TRC20). It is not clear what exactly caused the change. At the same time, Poloniex representatives on Telegram ignore users’ questions about the reasons for stablecoin support stopping on BEP20, but note that users can still deposit tokens on BEP20.

Earlier, we reported that MakerDAO will exclude renBTC from DAI stablecoin reserves due to the drop in renBTC price.

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Cryptocurrency

Binance Launches Proof-of-Reserves System

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Binance has released a Proof-of-Reserves system based on Merkle Tree, an algorithm for verifying crypto exchange reserves. The Proof-of-Reserves system proves that the company holds user funds in full. When a user deposits one bitcoin, the exchange’s reserves increase by one bitcoin in real time, proving the transparency of balances and the safety of funds.

The first version of Proof-of-Reserves is available for bitcoin (BTC). Similar functionality will soon be available for ETH, USDT, USDC, BUSD and BNB. Binance will also bring in an independent third-party auditor to verify the data.

“Given recent events, it is clear that the community will demand more from crypto exchanges than what is currently required of traditional financial institutions. That’s why we are excited to provide our users with this newest feature to verify crypto exchange reserves,” said Binance CEO Changpeng Zhao.

He added that Binance’s community is larger than that of any other crypto exchange. Therefore, it will take several weeks to get data for most assets.

“We are working to get the next update out as quickly as possible. As much as possible to meet community expectations,” Zhao noted.

Right now, users can check funds in two ways: through the Binance website or by copying the source code into a Python application and cross-referencing.

Also, the ZK-SNARK tool will soon be introduced, providing privacy and simplicity for confirming reserves. The service will help audit users’ balances and confirm that they have assets to cover collateral.

Earlier, we reported that New York City restricted the cryptocurrency mining business.

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Cryptocurrency

Polkadot offers money for fighting crypto fraudsters

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cryptocurrency scammer list

Blockchain project Polkadot has launched Anti-Scam Bounty, an anti-crypto fraudsters program to improve the security of its ecosystem. As part of the new program, Polkadot will pay users cash rewards for helping them fight crypto fraudsters.

Users are required to find fraudulent websites, fake social media profiles and phishing apps that masquerade as Polkadot. They also need to protect Discord servers from hacker attacks. The tasks include creating training materials for users, as well as developing a special Anti-Scam toolbar to protect against fraud in the company’s ecosystem.

“Decentralizing anti-cryptocurrency scammer list efforts and moving them online is no easy task, mainly because most of the anti-scamming happens in Web2,” Polkadot said in a statement.

Each task is overseen by members of the Polkadot community. They will interact with implementers and suggest their own initiatives to better achieve results. Users will receive USD Coin (USDC) awards for helping to fight fraud. The program is now run by three mentors from the Polkadot community and two employees from the Web3 Foundation.

“The threat to Polkadot’s brand development is real, but that’s not our only concern. We don’t want Polkadot to be a free ecosystem. We want it to be a secure ecosystem where users don’t have to constantly worry about getting caught and scammers should think twice before casting their nets,” Polkadot said.

Polkadot concluded by reaching out to scammers, promising that they will have a tough time in the ecosystem.

“So pack your bags and go for it. Or better yet, get a job and stop stealing from people!” the authors of the release concluded.

We previously reported on why the collapse of FTX won’t kill the crypto industry.

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