Decentralized platform for crypto exchange Binance announced the launch of an XRP-pegged token on Binance Chain, called XRP-BF2.
Changpeng Zhao, Binance CEO on October 3rd announced the launch of a new token, pegged to the value of XRP. The tweet went thus:
“This was suppose to be announced a bit later. But such is the nature of blockchain project, #transparency. Can’t hide anything.
Well, there you go, #XRP (on chain pegged) on #BinanceChain and @Binance_DEX.
Guess which flood gates this opens up?”
Members got a glimpse of the development after a twitter user discovered the XRP-pegged token, called XRP-BF2 on Binance’s DEX explorer.
According to DEX explorer, the new token will have a total supply of 10 million and be available via Binance’s decentralized platform, Binance DEX.
Some users said the creation of an XRP-pegged token was same as introducing more XRP into circulation, creating inflation.
“Binance creating pegged xrp tokens means there are more xrp coins/tokens available for trading. Some investors will buy the pegged coins instead of real xrp. It will reduce demand on native xrp tokens”
Zhao replied saying that while the token will be available for circulation, it’s primary function is to create direct trading pairs for XRP on DEX and other exchanges. In addition, by using DEX, XRP holders can trade directly from their hardware wallet.
“Have you ever asked for more trading pairs against #XRP?
Native XRP does not have direct trading pairs (especially on any non-custodian DEX) for say, BTC, BNB, MATIC, etc. Well, now it does.”