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Binance moves to  BEP-2 standard burns all BNBs based on ERC-20

  • The exchange proceeds with the migration to the proprietary blockchain.
  • BNB is losing ground amid global correction on the cryptocurrency market.

Binance, the largest cryptocurrency exchange by market value, announced the decision to convert all Binance Coin tokens (BNB) standard from both cold and hot wallets based on ERC-20 into the proprietary BEP-2 standard.

"Binance will convert all the ERC20 $BNB tokens in our hot & cold wallets to native BEP2 tokens. To achieve this, all the ERC20 BNB tokens in our hot & cold wallets will be burned, and equal amounts of BEP2 tokens will be sent from the creator address to our new BNB cold wallet", the head of the exchange Changpeng Zhao explained on Twitter.

Apart from that, Zhao published a new cold wallet address for  BEP2-based BNB coins, which can be viewed at any time by anyone who wants to watch the migration in real time. 

It is worth noting that Binance has updated its security system recently to eliminate vulnerabilities that led to a massive hack attack and a loss of $40 million. The company claimed that deposits and withdrawal functionality had been restored, but some users are still complaining that they face bugs after the update.

Binance Coin, now the 7th largest crypto asset with the market value of $3.6 billion is changing hands at $25.92. The coin has lost nearly 5% of its value since this time on Thursday, though it is still 34% higher on a week-on-week basis.
 

Author

Tanya Abrosimova

Tanya Abrosimova

Independent Analyst

 

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