What benefits will the “Binance CMC Index Series” give users? Does the CoinMarketCap integration compromise its independence from Binance? Learn more here!
Binance CoinMarketCap Index
Binance has announced the introduction of its first Index, entitled the “Binance CMC Index Series,” in collaboration with CoinMarketCap, a major crypto price-tracking website it acquired in 2020.
According to the announcement, the Index will include the top 10 cryptocurrencies by market capitalization and will be available to users in November.
Users can expect more from the Index Series in the near future, as the company aims to incorporate other popular digital assets. According to Binance, integrating the Index into “Binance’s auto-invest function” will enable investors to make better financial decisions by investing or diversifying their portfolios directly through the app, using the Dollar-Cost Averaging method.
Furthermore, the Index’s user interface is designed to make it easier for users to analyze and monitor the market in real-time.
How Independent is CoinMarketCap?
The Index will be rebalanced at the beginning of each month, and live price data will be used with the assistance of CoinMarketCap, the most-used crypto price tracker in the world.
Although it has been owned by Binance since April 2020, CoinMarketCap stresses that it operates independently from its parent company, but this index integration sparks questions about whether the two companies can still be considered independent, or if this is a move toward erosion of that independence.
Growth of Binance, Centralization
Binance already ranks as the world’s largest crypto exchange in terms of trading volume. During the ongoing bear market, the company has continued to develop digital services and expand its footprint.
For example, the company recently acquired an operating license in Kazakhstan and opened an office in New Zealand. It has now established a foothold in Central Asia, effectively expanding its global reach beyond the Middle East, Europe and the Americas. The acquisition of CoinMarketCap and integration within the Binance ecosystem is another step in Binance’s journey to crypto world dominance.
The basic premise behind Vitalik Buterin’s Ethereum and Nakamoto’s Bitcoin was to give individuals more control and provide for decentralization. However, those ideals can seem to be in conflict with the growing influence of cryptocurrency exchanges.
Binance maintains its mission to make cryptocurrency more accessible and to serve as many customers as possible by providing an easy-to-use platform. Its popularity attests to its success, but also gives rise to a significant debate: Is Binance’s continued growth, and by extension greater centralization of blockchain finance, beneficial to the crypto industry, which many people believe by definition ought to be decentralized?
What Is Binance:
Binance positions itself as the world’s leading blockchain ecosystem and crypto-asset infrastructure provider with a financial product suite that includes the largest digital asset exchange by volume. The Binance platform aims to increase the freedom of money for users and features a comprehensive portfolio of crypto-asset products and offerings, including trading and finance, education, data and research, social good, investment and incubation, decentralization, and infrastructure solutions.
Where to find Binance:
Source : bsc.news
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