Altcoin News: Binance CEO Rejected the Idea of ​​Reorganizing the Bitcoin Blockchain and Confirmed Readiness for Margin Trading

May 8, 2019, by Marko Vidrih on ALTCOIN MAGAZINE

Binance CEO, Changpeng Zhao, on Twitter announced that his team had rejected the idea of ​​reorganizing Bitcoin blockchain as a way to eliminate the effects of a hacker attack, during which more than 7,000 Bitcoins were withdrawn from the hot wallet of the exchange.

Before this, answering questions from users during a scheduled AMA broadcast, Zhao noted that such an opportunity is indeed being considered. For this, Binance would have to involve large mining pools in order to collect more than 51% of the network’s computing resources and roll back the transaction history.

“To be honest, we can actually do this probably within the next few days. But there are concerns that if we do a rollback on the bitcoin network at that scale, it may have some negative consequences, in terms of destroying the credibility for bitcoin,” he said.

Zhao’s words found a sharp rejection among community members who pointed out the inadmissibility of such actions in general and the insufficient scale of the incident. BitMEX Research recalled that similar measures were considered in 2016, when Bitfinex lost almost 120,000 BTC but were rejected for a number of reasons.

Zhao himself wrote that the decision to abandon the reorganization was made following a meeting with various representatives of the industry, including the initial Bitcoin Core contributor Jeremy Rubin and co-founder of the mining company Bitmain Jihan Wu.

Other industry participants volunteered to help Binance. So, CEO of Tron, Justin Sun, tweeted that he personally is willing to transfer $40 million “for the purchase of $BNB, $BTC, $TRX & $BTT.” Zhao thanked Sun, but said that the losses would be covered with the help of the funds of the SAFU ( Secure Asset Fund for Users) fund. “We are hurt, but not broke,” he wrote.

He also thanked Coinbase and other unmentioned cryptocurrency exchanges who agreed to block deposits coming from the addresses of the attackers.

Although much of the discussion was devoted to the latest incident, Zhao raised other concerns to users. In particular, he commented on observations suggesting that Binance could trigger margin trading.

“I think that many have already seen the addition of the margin trading parameter. We are working on a margin system. It seems that it will be launched very, very soon, ”he said, adding that initially several large market participants will be allowed to use the margin trading capabilities, who will be testing the tool. — The code, in fact, is ready. It remains for us to test it and eliminate possible bugs. ”

Talking about the launch of its own Binance stablecoin, Zhao confirmed that such discussions are really taking place within the company, noting that plans may change at any time.

Zhao declined to answer the question of what project the next will hold his IEO on the Binance Launchpad platform but expressed confidence that its name will be announced this month. According to Zhao, Binance will continue to adhere to the lottery format for selecting investors to participate in crowdfunding campaigns, while reducing the shelf life of BNB.

He also admitted that in the future, Binance may disclose the code of its decentralized exchange, but it will not do so in the foreseeable future, since other companies may adopt it. At the same time, SegWit Bitcoin scaling technology integration is in the Binance roadmap but has a low priority.

Author: Marko Vidrih