The Hong Kong-based Binance exchange is launching multiple initiatives to fight cybercrime and boost performance, signaling heightened competition in an industry that has seen dramatic growth in such a short period of time.
Crypto Fund Announced
On Sunday, Binance announced it was setting aside a $10 million cryptocurrency reserve to fight future attacks on the digital currency exchange. The fund, which will be denominated in cryptocurrencies, will enable the company to incentivize community involvement in responding to cyber attacks in the future.
“Binance has currently allocated the equivalent of $10,000,000 in crypto reserves for future bounty awards against any illegal hacking attempts on Binance,” the company said in a press release. “We have also invited other exchanges and crypto businesses to join our initiative. We welcome their participation at any time.”
The same press release offered a $250,000 bounty on any information leading to the arrest of culprits behind last week’s attempted heist of Binance user accounts. Although the situation was swiftly resolved, the exchange later confirmed it was subject to a large-scale phishing attack that attempted to steal altcoins from user accounts. The attempted heist may have also been associated with the pumping of a lesser-known asset by the name of Viacoin.
No information on the identity of the hackers has been provided.
New Blockchain, Improved Cryptocurrency on the Way
Binance has also announced plans to develop its own blockchain to facilitate smoother transactions while ensuring consistent liquidity. Dubbed ‘Binance Chain,’ the new platform seeks to introduce new efficiencies in blockchain technology.
In a Tuesday press release, the company said Binance Chain will “mainly focus on the transfer and trading of blockchain assets, as well as provide new possibilities for the future flow of blockchain assets.”
The launching of a new blockchain also necessitates an upgrade of Binance Coin (BNB), the company’s cryptocurrency. Under the new structure, BNB will exist on its own blockchain mainnet. As a native token, BNB will be designed to serve the platform’s entire ecosystem, which consists of millions of users.
Launched in September, Binance has emerged as one of the world’s fastest growing digital currency exchanges. It routinely ranks in the top-three platforms by overall activity. On Tuesday, it took the top spot, with 24-hour volumes exceeding $1.5 billion, according to data provider CoinMarketCap. Total trade volumes across all exchanges totaled $15.5 billion.