BNB has tokens for each Altcoin

[seoincorporation]

Some weeks ago i used metamask and pancake swap to sell some tokens, and they give the option to sell them for common altcoins like ETH, LTC, DOGE... But when you use this service to buy the altcoins what you are buying are the tokens of these coins and not the real coins, as an example I will leave the link to the LTC smart contract:

https://bscscan.com/token/0x4338665cbb7b2485a8855a139b75d5e34ab0db94

If you want to buy the real coins you need to swap for BNB then deposit that on binance.com and then trade for the real coins.

But here the issue is, they have created a token for each altcoin, and from my perspective, that's a nasty move because for sure there is a lot of people holding these tokens and thinking they are holding real altcoins.

I want to know what does the community thinks about this move from Binance.

[Beparanf]

It's not a nasty move. It's like BTC to EBTC on Ethereum Blockchain. Since there is a limitation on crosshain of other Blockchain when using DEX, Exchange just introduce a proxy token which the value is pegged to the original coin. The difference is just you can't use the proxy coin function as the original but its still the same for investment purposes. This is move is not only happening on Binance alone but on most blockchain like Waves, ETH and Eos

[Princejebs]

I think you are misunderstanding the situation of tokens that are backed by real coins. This token you see on other chain are most likely backed by Binance that's why if you observe closely, the general Binance. Con exchange has bsc deposits for BEP-20 tokens. So, there is no cause for alarm anytime you feel like withdrawing your funds or swaping it into other assets.

[Vishnu.Reang]

It's not a nasty move. It's like BTC to EBTC on Ethereum Blockchain. Since there is a limitation on crosshain of other Blockchain when using DEX, Exchange just introduce a proxy token which the value is pegged to the original coin. The difference is just you can't use the proxy coin function as the original but its still the same for investment purposes. This is move is not only happening on Binance alone but on most blockchain like Waves, ETH and Eos

The Binance equivalent for BTC is Bitcoin BEP2 (BTCB), and not EBTC. Wrapped Bitcoin is another coin that can be considered as Bitcoin equivalent. But eBTC is some worthless shitcoin called eBitcoin, which is worth around $0.50 per coin (I had the misfortune of investing in this coin back in 2017, but got rid of it in 2018). Anyway, I like the idea of creating tokens. In terms of safety, it is no more riskier than keeping your coins in exchange wallets. But the plus point here is that you will be able to save a lot in terms of transaction fees.

[terrorJR]

as 3 countries have decided to block the Binance exchange for regulatory reasons, the impact on the coin itself is obvious, so when the price of Bitcoin, Cardano, and some other cryptocurrencies, BNB did not recover. so when the Bitcoin Crash continued it was clear that BNB coin became the crypto being the crypto with the lowest buying volume including Tokens under the BNB network.

[livingfree]

That is a tactic of theirs so that people will buy on their BSC network and everything has to be traded first with their own token made for each altcoin.

It's just that CZ knows how to make a strategic move so that it can increase the demand for his tokens on his own network.

[speedforce]

Some weeks ago i used metamask and pancake swap to sell some tokens, and they give the option to sell them for common altcoins like ETH, LTC, DOGE... But when you use this service to buy the altcoins what you are buying are the tokens of these coins and not the real coins, as an example I will leave the link to the LTC smart contract:

https://bscscan.com/token/0x4338665cbb7b2485a8855a139b75d5e34ab0db94

If you want to buy the real coins you need to swap for BNB then deposit that on binance.com and then trade for the real coins.

But here the issue is, they have created a token for each altcoin, and from my perspective, that's a nasty move because for sure there is a lot of people holding these tokens and thinking they are holding real altcoins.

I want to know what does the community thinks about this move from Binance.

The pegged-tokens altcoin is a way to bring the altcoin to another network. So, its make people possible to trade them on the DeFi. Its not a nasty move since its backed with the real altcoin, you can actually swap it to the real coin by depositting it on Binance.

Source : https://community.trustwallet.com/t/what-are-binance-peg-tokens/568

[electronicash]

That is a tactic of theirs so that people will buy on their BSC network and everything has to be traded first with their own token made for each altcoin.

It's just that CZ knows how to make a strategic move so that it can increase the demand for his tokens on his own network.

very strategic and i think it should have been done by other platforms too like the TRX and ADA. for ADA i believe they are on the way to be doing this while their smart contract is already up. they've already had deals with ERC projects actually. crosschains and tokenbridges will make it possible for all these platforms to have interoperability.

[masulum]

The pegged-tokens altcoin is a way to bring the altcoin to another network. So, its make people possible to trade them on the DeFi. Its not a nasty move since its backed with the real altcoin, you can actually swap it to the real coin by depositting it on Binance.

Yes it is, The use of pegged BTC and altcoins, on the ETH and BSC or in other networks aims to make it easy for everyone to own top tier assets on different networks. What's interesting is, we can buy BSC tokens and send them to support pegged-token, we can exchange them for real without any hassle. However, there is one thing to keep in mind, the exploitation problem that exists with BSC/ETH/MATIC smart contracts, when we choose the wrong developer, and their SC has a bug, this will be easier for hacker to pick up our assets or even dump, compared to having BTC and altcoins on their network.

[Sayeds56]

That is a tactic of theirs so that people will buy on their BSC network and everything has to be traded first with their own token made for each altcoin.

It's just that CZ knows how to make a strategic move so that it can increase the demand for his tokens on his own network.

CZ is a leading personality in crypto space without any doubt and done great job for crypto space.  Look at Binance exchange where it was 3 years ago and where it is today. He knows well how to create usability of his coin BNB and it is usability that adds value to any coin. This coin has grown more than 1000% during the past 3 years. Most of the new projects are now launched on Binance smart chart in stead of Ethereum because transaction fees  are extremely high and un affordable on Ethereum network.



https://www.tradingview.com/symbols/BNBUSD/

[TastyChillySauce00]

It's just wrapped token so you can interact with most of smart contract using these tokens but it really pegged to the real coin,
for example, if you want to swap BEP20 token to altcoin like litecoin, since it's not available in BSC you usually need to go to cex and exchange there and that's the only way you can get that, but with these wrapped tokens, you can use for example pancakeswap to get wrapped litecoin tokens that represents the real token.
nothing new and it's not even strategy, it's just a way to give more capability to trade other blockchain coins for dex or defi users in their blockchain.

[tbct_mt2]

Exchanges and projects try to create cross chain solutions with wrapped tokens through smart contracts. It give people more convenience to change their capital from Bitcoin, BNB, ETH to other altcoins through smart contracts and wrapped tokens.

Recent months, it is a trend that old and small altcoins have very good recoveries when their teams create wrapped tokens. It results in short term hypes for those projects and price has good reasons to move.

[rozak]

I don't think there's anything bad here. this is just a service for the function providers of DEX or CEX. provides many assets to make it easier where we can trade over the ownership of the assets we want.
there may be some conspiracy to further benefit the BNB coin or the use of a DEX that only supports binance. but binance really has been amazing at developing something that will interest a lot of people.

[Bttzed03]

~ If you want to buy the real coins you need to swap for BNB then deposit that on binance.com and then trade for the real coins.

No, you don't need to swap for BNB. You can deposit these wrapped tokens like LTC to Binance but you have to select the correct network which is BSC. You can withdraw it using the native Litecoin blockchain later on.

[Sithara007]

I don't think there's anything bad here. this is just a service for the function providers of DEX or CEX. provides many assets to make it easier where we can trade over the ownership of the assets we want.
there may be some conspiracy to further benefit the BNB coin or the use of a DEX that only supports binance. but binance really has been amazing at developing something that will interest a lot of people.

But what about the risk factors? If Binance is holding the coins for us, then there is a chance that these assets can either be stolen or seized.  A few years back, Binance hotwallet was hacked and some coins were lost. And there is no guarantee that such a situation will not repeat in the future. And I am hearing rumors about the SEC launching legal action against Binance for sometime. It will always remain like the Damocles's sword. Then another risk factor is centralization. These tokens can be frozen by Binance, if they want to do so.

[distr@yopmail.com]

But what about the risk factors? If Binance is holding the coins for us, then there is a chance that these assets can either be stolen or seized.  A few years back, Binance hotwallet was hacked and some coins were lost. And there is no guarantee that such a situation will not repeat in the future. And I am hearing rumors about the SEC launching legal action against Binance for sometime. It will always remain like the Damocles's sword. Then another risk factor is centralization. These tokens can be frozen by Binance, if they want to do so.

of course, binance can freeze every asset they create with the system they are running. in fact, it also affects BUSD and other assets whose authority is indeed held by binance.
I think in a case like this, there are bound to be people who like it because it uses what Binance has to offer. but some do not like it for reasons of risk as you mentioned.
we will not know for sure whether it will be legalized or not in the future. but for sure if that happens, I don't think an exchange as big as binance will take your money away if there is a freeze for some of the assets in question.

[Reid]

It's called wrapped tokens.

Wrapped tokens allow an asset issued by one blockchain to live on another. They increase the liquidity and capital efficiency of centralized and decentralized exchanges. They can also bridge the gap between isolated liquidity on multiple chains and offer significantly faster transaction times and lower fees

They use it a lot with their exchanges that also use a wallet. It's not an issue because you can still exchange it at their network.
But, if you want to keep the real altcoin or real Bitcoin you will need to exchange it for something without the "W".
I think they use this method to prevent failure of providing with that certain coin/token especially if there is a low total supply.

Lower fees and transaction time is fast because you are just using the Binance chain in this example.

[Sithara007]

of course, binance can freeze every asset they create with the system they are running. in fact, it also affects BUSD and other assets whose authority is indeed held by binance.
I think in a case like this, there are bound to be people who like it because it uses what Binance has to offer. but some do not like it for reasons of risk as you mentioned.
we will not know for sure whether it will be legalized or not in the future. but for sure if that happens, I don't think an exchange as big as binance will take your money away if there is a freeze for some of the assets in question.

I just mentioned the risk factors, although I know that chances of something like that happening is very remote. I made the post because a lot of people are talking about the lawsuit being prepared by the SEC against Binance. I just hope that Binance will be able to stay out of trouble, unlike what happened to BTC-e/Wex.nz back in 2017-18. For me, these things don't matter much. I use exchanges such as Binance only to swap my crypto (and that too only once in a while). But there are users who store coins in exchange wallets. They need to be cautious.

[Beparanf]

It's not a nasty move. It's like BTC to EBTC on Ethereum Blockchain. Since there is a limitation on crosshain of other Blockchain when using DEX, Exchange just introduce a proxy token which the value is pegged to the original coin. The difference is just you can't use the proxy coin function as the original but its still the same for investment purposes. This is move is not only happening on Binance alone but on most blockchain like Waves, ETH and Eos

The Binance equivalent for BTC is Bitcoin BEP2 (BTCB), and not EBTC. Wrapped Bitcoin is another coin that can be considered as Bitcoin equivalent. But eBTC is some worthless shitcoin called eBitcoin, which is worth around $0.50 per coin (I had the misfortune of investing in this coin back in 2017, but got rid of it in 2018). Anyway, I like the idea of creating tokens. In terms of safety, it is no more riskier than keeping your coins in exchange wallets. But the plus point here is that you will be able to save a lot in terms of transaction fees.

If you read carefully my statement, I never said that it was on BSC but rather on Ethereum Blockchain that's why I name it EBTC(Ethereum Bitcoin) for the purpose of discussion. I know Wrapped Bitcoin and you only emphasized without comprehending the whole content of my post. But yeah, There's a lot of shitty token on all blockchain that disguising in BTC. Try to go on waves platform and you will see millions of it that giving some airdrop. 

[GreatArkansas]

But what about the risk factors? If Binance is holding the coins for us, then there is a chance that these assets can either be stolen or seized.  A few years back, Binance hotwallet was hacked and some coins were lost. And there is no guarantee that such a situation will not repeat in the future. And I am hearing rumors about the SEC launching legal action against Binance for sometime. It will always remain like the Damocles's sword. Then another risk factor is centralization. These tokens can be frozen by Binance, if they want to do so.

A lot of rumor that Binance Smart Chain is centralized, not decentralized and if you take a closer look, it's almost copycat of Ethereum, but yet in some use cases, Binance Smart Chain got uses.
Binance Exchange and Binance Smart Chain are different, but yeah Binance Exchange is a big player for Binance Smart Chain (name tells,lol) Without Binance Exchange, Binance Smart Chain is probably not existing.

About the risk factors here since Binance Smart Chain is POS, and there are different validators (https://bscscan.com/validators) and each of them got voting power, if there is one entity or person got the most voting power that's maybe the risk.