Binance US added Tron (TRX) to the selected list of coins they offer on their platform. Besides adding just “another” coin, Tron adds some good features. Above all, they offer cheap Tether (USDT) transactions. This makes Tron a welcome addition.
However, Binance worldwide listed Tron already. In this article, we explain the difference between the two Binance exchanges. Furthermore, we explain Tron’s relationship with Tether.
We’re excited to announce that https://t.co/AZwoBOgsqS is listing Tron $TRX @trondao
Deposits are open now!
Get started: https://t.co/POC7DHSaFf pic.twitter.com/u6zCqwuKzY
— Binance.US 🇺🇸 (@BinanceUS) March 31, 2022
The Difference Between the Two Binance Exchanges
Changpeng Zhao (or CZ) founded Binance in 2017. Since then, the Binance team managed to become the world’s biggest CEX. A CEX is a centralized exchange. However, Binance had to overcome many problems along their road. Every country has different regulations. Somehow, Binance must comply with these different regulations. This brings us to the root of the issue of why there are two different Binances.
Regulators in the US see many assets traded by Binance as securities. To clarify, securities file under the same category as stocks, bonds, and futures. So, before you can trade in these assets in the US, there is lots of red tape to go through. As a result, Binance didn’t want to adapt to US regulations, but rather started a new company instead. That’s how Binance in the USA came to life. Consequently, Binance could continue with their worldwide dominance.
The US version of Binance is only for US customers in the US market. Binance lists almost 400 crypto assets in some 1650+ markets. On the other hand, Binance US lists 88 coins and 195 trading pairs. Tron is their latest addition.
Furthermore, not every US state can trade on the US version of Binance. The platform just added Louisiana as the 45th US state. However, Texas, Hawaii, Idaho, New York, and Vermont are still waiting to get on the list. This boils down to the fact that each state has different requirements. At the end of the day, the platform wants to be available in all 50 states. But, this will take some time and patience.
Source: Binance US website
Tron (TRX) and Its Relationship With Tether (USDT)
The Tron ecosystem is in the good hands of Tronix (or TRX). This Tron TRC-20 token powers the Tron ecosystem. In turn, Tron intends to become a Web 3.0 infrastructure provider. Their ecosystem has, among others, a vast DeFi space. TVL in Tron DeFi is $7 billion. Also, blockchain games, NFTs, and marketplaces are part of their DeFi.
Furthermore, it offers the following:
- A native wallet
- Tron blockchain explorer
- DApps
- BitTorrent Chain
- SUN network
- Community projects
Tron is a fast and scalable blockchain. It also offers low transaction fees. In addition, its consensus mechanism is DPoS. This is the delegated proof-of-stake, a variation of PoS. The TRX token has the following use cases:
- Power the ecosystem and its smart contracts
- Staking
- Paying for transaction fees
- Unit of account inside the Tron ecosystem
However, one of the enticing features of Tron is what it does with Tether. In 2021, Tron surpassed Ethereum with the amount of USDT on their respective chains. Currently, Tron network holds $41.7 billion in Tether TRC-20 on its chain. That’s no less than 50% of the total worldwide supply. In addition, there are 11.88 million Tron address holders. On a daily basis, there are some 385 million transactions on Tron with USDT.
Source: Tronscan
There are a couple of reasons for this. Due to congestion on the Ethereum chain, gas fees there are expensive. On the other hand, Tron charges only $1 per transaction. Furthermore, their transactions are fast. The picture below displays the amounts of Tether on the various blockchains.
Source: Tether website
Conclusion
That Binance US listed Tron as their newest asset is not surprising. By adding the Tron chain, the platform will see an increase in USDT usage. As a result, this will benefit their platform. Furthermore, we also gave an explanation of the differences between the two Binance platforms. A win-win situation for both Binance US and Tron.
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