Is Binance fueling the DeFi mania?

The leading cryptocurrency exchange based on the number of users and the reported daily volume Binance has caught the attention of the cryptocurrency community. However, this time, the community is calling out the exchange for supporting the decentralized finance craze. The exchange recently adopted a policy that is seeing more DeFi tokens listed as tradable assets.

The DeFi ecosystem has in recent months become the talk of the industry. Tokens with funny names and sometimes with little to no utility keep soaring to new highs. A section of the crypto community is seeing the meteoric growth as an ingredient for a potential DeFI bubble that could also affect other solid cryptocurrencies in the future.

Binance on Thursday announced that Binance Futures, a derivatives trading platform, was going to “launch Thorchain_org RUNE and SushiSwap (SUSHI USDT) Margined Perpetual Swap Contracts with up to 50x leverage. One user on Twitter, @spideycrypto warned that time is going to come when half-baked tokens would suffer attacks from scammers who will then send the stolen funds to Binance.

For those wondering what it means: next time some two-bit #Uniswap or ICO scammer tries to steal funds from users and sends to #Binance to cash out, he will get stopped.

As more exchanges join, scams will become less viable. Thanks to @binance and @OasisLabs for leading the way! https://t.co/BGxueLAR3e

— Spidey (@spideycrypto) August 28, 2020

This announcement was not received well by people in the community with some calling Binance a “scam exchange.” For instance, @TheCryptoHawk lamented on Twitter over the increasing technical challenges on exchange.   

“Scam exchange scamming again! Here we are, fake money futures to fake #DeFi coins! Once you lose everything don't cry! Hey Binance maybe fix your platform before launching new contracts! I did not forget you soon I see ya in court!”

The Binance Twitter feed confirms some of the technical difficulties. The exchange highlighted an issue on Wednesday and assured users that the “team is working on it.” Binance also apologized for the inconvenience caused.

Scam exchange scamming again! Here we are, fake money futures to fake #DeFi coins! Once you lose everything don't cry! Hey @binance maybe fix your platform before launching new contracts! @cz_binance I did not forget you soon I see ya in court! https://t.co/xBO9LsJLGA

— Hawk / Trading Plex (@TheCryptHawk) September 3, 2020