It’s not a good time to be Binance (BNB) or any other crypto exchange that tends to exist in a regulatory gray area. The world’s largest exchange is finding it more difficult than ever to stay connected to the traditional financial system, while TMS Network (TMSN) is building a decentralized alternative with the more than $4.0 million it has already raised via its token presale (second phase is happening now). All the while, Solana (SOL) tumbles as well.
TMS Network (TMSN)
The current struggles found with Binance (BNB) are the perfect illustration of why decentralized exchanges (DEXs) like TMS Network (TMSN) were invented in the first place. Lawmakers and regulators can target centralized exchanges with onerous regulations rather easily, but decentralized options like TMS Network (TMSN) give users full control over their funds, making it much more difficult to prevent people from freely exchanging between crypto coins.
Other DEXs already exist, but TMS Network (TMSN) is rare in that it acts more like a centralized exchange that uses blockchain technology to vastly improve security for its users rather than focusing on building a product that is as decentralized as possible just for the sake of decentralization. Notably, TMS Network (TMSN) also operates in more than just crypto markets, offering users the ability to also trade equities, contracts-for-difference, and forex.
Other features that TMS Network (TMSN) plans to bring to the DEX market include adequate risk management tools, social trading, and improved scalability. Additionally, TMS Network (TMSN) will offer trading education to those who are new to the world of decentralized finance (DeFi) and need a little help along the way. After all, it is the wild west of digital finance out there.
The Solana (SOL) Foundation, a non-profit organization that supports the development of the Solana (SOL) blockchain, has announced its partnership with Arweave, a decentralized storage network, to provide long-term storage solutions for non-fungible tokens (NFTs) created on Solana (SOL). By using Arweave’s permanent storage protocol, NFT creators and collectors on Solana (SOL) can ensure that their digital assets will be preserved and accessible forever.
According to the announcement, the Solana (SOL) Foundation will subsidize the storage costs for NFT projects that use Arweave’s service. The first project to benefit from this partnership is Metaplex, a platform that allows anyone to create and sell NFTs on Solana (SOL).
While Solana (SOL) holders are excited by the announcement, critics pointed out that the Solana (SOL) Foundation’s key role in this functionality is yet another sign that the layer-1 blockchain is simply too centralized to matter.
Binance (BNB), the world’s largest cryptocurrency exchange by trading volume, is facing challenges in finding a reliable banking partner in the U.S. market. The exchange has been under regulatory scrutiny in several countries, including the U.K., Germany, Japan, and Singapore, over concerns about its compliance with anti-money laundering and consumer protection rules.
The lack of a stable banking partner could affect Binance (BNB)’s ability to serve its U.S. customers and compete with other crypto platforms that have established relationships with reputable banks, such as Coinbase, Kraken, and Gemini. It could also hamper Binance (BNB)’s plans to launch a U.S.-based initial public offering (IPO) in the future.
Binance (BNB)’s founder and CEO, Changpeng Zhao, said in July that he hopes to go public in the next three years and that he is willing to comply with regulatory demands. He also said that he is looking for a successor with a strong regulatory background to lead the company.
All of this regulatory uncertainty has led to uncertainty regarding the future price of Binance (BNB), which faces many of the same centralization risks as Solana (SOL). Going forward, crypto investors may want to stick with projects focused on decentralization such as TMS Network (TMSN).
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Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.