Binance will Swap BNB Tokens from Ethereum Blockchain to Binance Chain
On April 18, the Binance cryptocurrency exchange launched its own blockchain Binance Chain and the decentralized trading platform Binance DEX. The migration of the Binance Coin (BNB) cryptocurrency from the Ethereum network to the Binance Chain is scheduled on April 23.
From April 23, BNB tokens of the new standard will function in the Binance Chain network, therefore all coin owners must transfer their cryptocurrency to the balance of the new blockchain. Old ERC-20 standard tokens will be destroyed, instead of them, Binance will issue BNB coins of BEP2 standard. Initially, the number of tokens in circulation will be 200 million, 48 million of them will be frozen, and more than 11 million will be destroyed.
Representatives of the exchange told about their plans to launch cryptocurrency on the new blockchain:
- the first batch of BNB in the amount of 5 million tokens will be transferred to the Binance deposit address;
- the exchange will destroy 5 million BNB coins of the ERC20 standard so that the total number of tokens does not change;
- when the BNB owner exchanges old tokens for new ones, Binance will destroy them, so the stock of digital assets will remain unchanged.
On April 23, the trading platform activates the Binance Chain Explorer block browser and the web version of the crypto wallet for storing BNB tokens. Conversion of old coins to new ones can be done on the Binance.com website. To do this, you will need to indicate the wallet address for BNB tokens of the BEP2 standard and transfer your BNB coins of the ERC20 standard to the exchange account. The company will destroy your coins and transfer to your account new ones.
After swap activation, it will not be possible to withdraw BNB Coins of ERC20 standard, which are stored on the accounts of the exchange. Therefore, if you want to keep ERC20 standard tokens, they need to be transferred to any Ethereum wallet by April 23. After starting the conversion of coins, Binance will not support tokens issued in the Ethereum blockchain, however, they can be exchanged for new ones.
On the basis of the Binance Chain technology, a decentralized Binance DEX exchange, based on the peer-to-peer money transfer protocol, was developed. Users of the new platform will be able to trade virtual currencies directly, without the participation of intermediaries. The blockchain will play the role of a powerful processor capable of handling the same volume of trading operations as the centralized Binance platform.
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