A few minutes ago, Bitcoin.com published the announcement that the decentralised exchange of Binance (DEX) will add support to a new token, BCH-1FD, which is pegged to Bitcoin Cash.
This token allows trading the BCH cryptocurrency on the decentralised exchange. At the moment it is not possible to trade with BCH directly on Binance DEX because it is based on Binance Chain, so to circumvent this limitation, this new token has been created, which represents the main cryptocurrency: Bitcoin Cash.
The token BCH-1FD, as mentioned, is pegged to the value of BCH, therefore it has the same value and trend of the main cryptocurrency, but with the possibility of being exchanged in an effective way on the DEX of Binance.
It is expected that about $2 million in tokens will be issued and if the market reacts positively, then new ones will be created.
As confirmed by Binance CEO Changpeng Zhao, the two communities are working together on this project:
“The BCH community is one of the strongest crypto communities, and we’re excited to collaborate with them on migrating BCH token onto Binance Chain. The BEP-2 BCH token will be pegged to the native BCH. BCH holders can enjoy the seamless token swap experience on Binance.com and non-custodian trading on Binance DEX after the listing proposal is approved by the Binance Chain community”.
In fact, in order to operate on this decentralised platform, the tokens must necessarily be based on the Binance blockchain and become BEP2 tokens that can easily be traded on the DEX.
Surely this is good news for Bitcoin Cash as it was not listed on other decentralised exchanges before. Only last month Bitcoin.com launched its own centralised exchange with the possibility to integrate and manage SLP (Simple Ledger Protocol) tokens, i.e. tokens based on the Bitcoin Cash blockchain.
Surely the relevance and importance of decentralised exchanges are starting to make their way: more recently, also the famous John McAfee launched his DEX and there’s a contest in progress where users can win the prize of spending a whole day with the founder of the homonymous DEX.