Binance’s BNB token has recently recorded a double-digit jump following a recent tweet teasing the launch of its margin trading platform.
BNB token jumped about 12% to hit $34 right after image of the margin trading interface surfaced.
The tweet teasing the margin trading interface was seen asking followers of the account which mode will be best. Two options were given— the dark mode and the light mode.
— Binance (@binance) May 24, 2019
Besides, Changpeng “CZ” Zhao, CEO of Binance exchange also made a reference to the tweet.
Who's paying attention here? https://t.co/vl4suaId8h
— CZ Binance (@cz_binance) May 24, 2019
The original tweet from Binance has gained more than one thousand likes.
CZ Confirms Margin Trade Following Hack
Reportedly, the exchange’s CEO confirmed that margin trading is coming to the platform in a recent “Ask Me Anything”. This was right after the highly publicized hack attack which saw about $40 million worth of crypto stolen.
Furthermore, Binance’s Changpeng “CZ” Zhao answered questions about the exchange next line of product.
As regards margin trading for bitcoin and other digital assets, the CEO explains that engineers at Binance are “beta testing” the feature. Besides, the exchange will roll out leverage support to “deep pocket traders,” with whom the exchange already “has agreements with.
Therefore, if there are bugs, it can easily be contained and fixed.
Reportedly, through margin trading, traders will be able to use their balance as collateral to enter leveraged positions. This type of trading is common with forex CFDs. Although profitable when the right call is made, a wrong call can prove risky.
Currently, other top crypto exchange such as Poloniex, Kraken, Huobi Pro and BitMEX let traders enter leveraged positions. With Binance gearing up to join the list, margin trading for crypto traders is likely to become a norm.
Binance’s BNB Token Right Now
Currently, the BNB token is trading at $34.14. The token has gained a 9.09% in 24 hours. Besides, the token’s 24 hours volume is $643,343,987 and the market cap stands at $4,819,736,424 USD.
Binance is Dominating
Binance has made a lot of major moves this year. Early this year, the exchange launched new exchanges in Jersey (for the UK), and Singapore. Furthermore, Binance recently released a beta version of decentralized’ exchange (DEX) for testing.
The launch of its margin trading feature will surely put the exchange in a class of its own.
Joshua Tayo is a Nigerian Freelance writer, who loves to write about anything related to technology. His interest in Cryptocurrency started in 2015, and it has not stopped since.