As consolidation in the cryptocurrency market intensifies, Malta-bound Binance partners with Changelly in a deal announced yesterday. Binance is the industry’s largest exchange platform by volume, while Changelly offers users a simple currency exchange interface.
In a Nutshell, What Does This Mean?
Binance is the Hong Kong-based, Malta-headed exchange that has quickly become the world’s largest. According to coinmarketcap, over the last 24 hours it has executed a trading volume of almost $4 billion USD worth of cryptocurrencies.
Changelly, based in Prague, is an easy-to-use interface that offers users a simple way to exchange from one cryptocurrency to another. It boasts around two million registered customers and fifteen thousand transactions a day. It also allows users to purchase bitcoin using a credit card. Its popularity derives from its simplicity of use. As the company’s website explains:
“Cryptocurrency exchanges are for skilled traders. We provide you with a convenient solution. Enjoy your best rates while we are doing the rest for you.”
The partnership would appear to be a win-win for both parties. Changelly would continue to provide users with a simple, convenient means of exchange without sifting through sophisticated charts and undergoing what can sometimes be an overwhelming process of exchanging cryptos on a traditional exchange. Using Binance’s rates and exchange speeds, Changelly might hope to attract users from Shapeshift, its main rival. It would also have access to a greater range of coins, which is currently limited to a little over a hundred.
Binance Partners With Changelly? What’s in It for Them?
Binance benefits from having a friendly interface between it and users who want to quickly exchange currencies. Binance’s website can be intimidating for first-time users. Using Changelly as a proxy brings a class of crypto holders into the Binance umbrella that might have otherwise been reluctant to use its services.
The deal also pivots Binance toward an even stronger position in the industry. As CEO Zhao Changpeng states:
“After meeting Konstantin in person to finalize our partnership, I am confident that Changelly has a professional team with great experience and even bigger potential. We believe that together we will provide users all over the world with a top-class level of service.”
The Giants Are Spreading Their Wings
Consolidation is a natural phase of a nascent industry and there have been a number of high-profile partnership announcements made this year. Only days ago, Binance announced a partnership with Crypto Savannah, a Ugandan blockchain innovation hub. Last month the exchange announced the establishment of Binance Chain, a blockchain supporting a decentralized exchange within Binance’s infrastructure.
Last month, Coinbase announced an arrangement with Barclays Bank in the UK, securing for itself access to British customers. Coinbase also added Cipher Browser, “the world’s first full-featured mobile dapp browser and wallet for the Ethereum blockchain” to its stable earlier this month. The American giant recently acquired Earn.com and is reportedly trying to purchase Silicon Valley startup Koding.
As Binance partners with Changelly, it will be interesting to watch as the major players in the cryptocurrency and fintech industries jostle for position and market share.
Have your say. Does the Binance-Changelly partnership benefit you? What impact will it have on Changelly?
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