Binance Issues ONT-Backed Token for DEX Trading

Published at: April 20, 2020

Growing the library of assets built on its own blockchain, Binance recently issued a new token backed by the crypto asset, Ontology (ONT). 

Built on Binance Chain and governed by a series of parameters known as BEP2, the new token goes by the name ONT-33D, a Binance spokesperson told Cointelegraph in an email. 

Tokens are backed by ONT coins

Each ONT-33D token holds a backing of one ONT coin, the spokesperson said. In theory, this should keep the token's price the same as the ONT tokens traded on the open crypto market. 

By nature, ONT coins travel on Ontology's own main blockchain, making them incompatible with Binance's decentralized exchange, or DEX, as the two operate on different blockchains. 

"It will allow ONT holders to have decentralized exchange service," the spokesperson said of ONT-33D.

ONT-33D isn't the first of its kind

Under the same parameters, Binance announced Bitcoin BEP2 (BTCB) in June 2019, with each token  backed by Bitcoin (BTC). 

"Many more DEX services will launch in the future," the spokesperson said.

"For example, Ontology will add a node staking feature soon, expecting to integrate it with the Binance DEX and enabling ONT holders to have full control over their assets while participating in ecosystem governance."

The concept appears similar to wrapped Bitcoin (WBTC) — a token issued on Ethereum's blockchain, backed by Bitcoin, allowing for BTC trading on ERC-20-based decentralized exchanges. 

Tags
Altcoin
Binance
Decentralized Exchange
Ontology
Related Posts
Data suggests UNI is 36% overvalued and SUSHI is trading at a discount
Just looking at Binance Coin’s (BNB) reported market capitalization, one might conclude that the token is the dominant asset when compared to other exchange tokens. Although there is no direct relationship between Binance’s exchange volume (or revenue) and token economics, traders seem to use it as a proxy. The controversial burn mechanism has been losing impact since April 2019, when the exchange changed the BNB white paper. Initially, the white paper proposed a plan where BNB tokens equivalent to 20% of the exchange’s profit would be bought under a “repurchasing plan,” but the new version scrapped that plan. However, excluding …
Markets / Sept. 1, 2021
FTX Token hits new record up 50% so far in September — What’s driving FTT price higher?
FTX crypto exchange’s native utility token, FTT, reached a new record high on Monday a week after it agreed to acquire LedgerX, a United States-based crypto derivative platform, for an undisclosed sum. On Monday, the FTT/USD exchange rate surged 16.37% to $73.99 in a market-wide rally that saw other top coins post similar but dwarfed price rallies. Additionally, the pair’s intraday climb coincided with gains among top exchange tokens, with Binance Coin (BNB) rising 2.3% and Uniswap’s UNI recording 3.5% profits on a 24-hour adjusted timeframe. LedgerX acquisition The news of FTX’s Ledger acquisition served as the primary bullish backdrop …
Markets / Sept. 6, 2021
The Uniswap effect is leading to 208% gains on average for certain tokens
A report from crypto data provider, Xangle, claims that tokens which first gain traction on Uniswap have consistently provided 208% returns on average once listed by major centralized exchanges. In the past, much had been said about the “Coinbase effect” and “Binance effect”, in which a token's price allegedly experiences fast appreciation once listed by either of the former exchanges. However, this time, it is purportedly a combination of listings that yields results. The report's authors examined a number of tokens that landed on a major centralized exchange after having already been listed by the Uniswap decentralized exchange. They concluded: …
Altcoin / Sept. 17, 2020
Here are 6 DEX tokens that have seen exponential growth in 2021
DeFi has steadily grown in prominence over the past year thanks in large part to the strong foundations established by decentralized exchanges (DEX) that enable easy access to the latest tokens and projects. While there have been previous iterations of DEX user interfaces, such as IDEX or Etherdelta, it wasn’t until Uniswap launched that trading in the DeFi network really took off and facilitated the launch of the finance tokens. Here are six of the top-performing tokens in the decentralized finance sector. UNI/USDT Uniswap has risen from the humble beginnings of a simple user interface that allowed for a token …
Markets / Feb. 27, 2021
3 reasons why Cosmos (ATOM) price is near a new all-time high
Blockchain network interoperability is shaping up to be one of the main themes for the cryptocurrency ecosystem in 2022. New users are continuing to onboard into the growing world of crypto while both new and established projects search for the chain that will best serve the needs of their protocol and community. One project that has 2022 off to a bullish start thanks to its focus on facilitating the communication between separate networks is Cosmos (ATOM). This project bills itself as “the internet of blockchains” and seeks to facilitate the development of an interconnected decentralized economy. Data from Cointelegraph Markets …
Decentralization / Jan. 5, 2022