Leading cryptocurrency exchange Binance and their blockchain Binance Chain have partnered with the directed acyclic graph (DAG) based smart contract platform Fantom (FTM), in an effort to improve interoperability within the blockchain ecosystem.
The Fantom Foundation announced the partnership via Twitter and Medium on May 22.
We are pleased to announce that we are joining the Binance chain family! We’re extremely excited to share that we’ll be collaborating to create a multi asset cross chain ecosystem!
— Fantom Foundation (@FantomFDN) May 22, 2019
The collaboration between Binance Chain and Fantom is to improve interoperability within the blockchain ecosystem by creating a system that is cross-chain and multi-asset. The partnership also intends to connect loosely tied industry players together to create a better digital economy.
The types of tokens included in the interoperability vision will include the Ethereum-based ERC-20 standard, Fantom’s native token standard, and Binance Chain’s BEP-2 token standard.
Per the Fantom/Binance Chain partnership announcement, Fantom says they chose to partner with Binance Chain due to an increasing number of projects moving over to its blockchain.
As well, they are attracted to the fact that Binance has one of the strongest centralized exchanges with lots of liquidity, while at the same time offering a cohesive decentralized ecosystem with their Binance decentralized exchange (DEX).
They believe Binance is taking the right approach to the crypto industry by offering their users a choice, and they think the Binance DEX is the most user-friendly DEX to date. Fantom have expressed that they want to give their Fantom community the opportunity to transact and trade FTM on the Binance DEX.
While Fantom says they chose to partner with Binance Chain because of its DEX and because there are various projects moving to Binance, it’s widely speculated that these projects, including Fantom, are joining Binance Chain simply for the market exposure.
After all, every project that announces a move to Binance Chain receives a substantial pump in price.
Take Fantom (FTM), for instance: before the partnership announcement, FTM was trading at $0.0128, and after the announcement, it reached a local high of $0.0194. This equated to a percentage increase of 34% in a matter of minutes following the announcement.
Image Source: https://coinmarketcap.com/currencies/fantom/
However, it will be interesting to see how this partnership pans out, and how Binance Chain and Fantom tackle the problems of interoperability together.
Do you think Binance will see many more partnerships and tokens migrating to Binance Chain soon? Let us know what you think in the comment section below.