Leading crypto exchange Binance has added another project to its Launchpool initiative in an effort to bring more DeFi experiences and earning incentives to its users.
The first project announcement of 2021 for Binance is called the Bitcoin Standard Hashrate Token (BTCST). The project aims to create an efficient market for Bitcoin’s mining power by performing as a leveraged Bitcoin token free from liquidation risk.
The blog post added that this is similar to how Grayscale Bitcoin Trust creates institutional liquidity for Bitcoin.
#Binance Launchpool Unveils New Project – Bitcoin Standard Hashrate Token $BTCST@BTCST2020 will create an efficient market for Bitcoin’s mining power in ways similar to how Grayscale's Bitcoin Trust creates institutional liquidity for #Bitcoin.https://t.co/qKcpsJzfqa
— Binance (@binance) January 8, 2021
BTCST Token Farming Begins on Binance
The token will be collateralized by 0.1 TH/s of actual Bitcoin hash power. This has been historically proven to be positively correlated to the performance of the underlying asset. Currently, as Bitcoin cools from its recent $41k+ all-time high, its hash rate (or computing horsepower) is also close to peak levels of 158.47 EH/s, according to Bitinfocharts.com.
Launchpool token farming for BTCST began on January 8 and runs for 30 days, during which yield farmers can stake BNB, BUSD, and BTC into three separate pools in order to farm BTCST. At the time of writing, there were 8.1 million BNB, 162 million BUSD, and 10,200 BTC staked in the three respective pools.
On January 13, Binance will list BTCST in the “innovation zone” and open trading for BTCST/BTC, BTC/BUSD, and BTCST/USDT pairs.
Binance CEO and founder, Changpeng Zhao, stated;
“BTCST is already deployed on the Binance Smart Chain as a cloud mining platform, and we support the project through our mining pool. We are happy to continue working with BTCST on its further development through Binance Launchpool”.
Any project running on the company’s own blockchain, and endorsed by Binance, gets an instant and often unfair, according to critics, boost above others as an exchange listing is guaranteed. The Launchpool landing page says it plainly;
“Basically, you get to accumulate a brand new coin, prior to (and after) a guaranteed listing on Binance.com, for free. Not a bad deal, right?”
The Bitcoin Standard Hashrate Token is the fifteenth project that the exchange has promoted.
BNB Price Update
BNB hit an all-time high of $44.60 on January 7 after gaining over 50% in the past 30 days. DeFi farming incentives and staking opportunities incentivize Binance customers to hold the tokens rather than selling them on the open market.
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