Bitcoin Global News (BGN)
April 25, 2018 -- ADVFN Crypto NewsWire -- Yesterday, it was
reported that Changelly, a crypto-exchange
service based out of the Czech Republic and Binance, which is perhaps the
world’s most popular crypto-exchange, have entered into a
partnership.
Judging by reports and company
statements on the subject, Changelly has a lot to gain from the
partnership. It remains somewhat unclear, however, what
incentivizes Binance.
With Binance’s move
to Malta in March, the company is clearly looking to
continue to innovate, in an area that appears free of
strong regulations. Other companies have even followed
suit, shortly after Binance led the way. With this partnership’s
official beginning a month later, it appears that Binance wants to
enhance its reputation as a company that is well-connected and
poised to succeed through a lack of competitors.
It had been said that Changelly was a
possible competitor to Binance before this
partnership existed.
Both have been trying to solve the
problem of the lack of exchanges that offer most, if not all of the
top coins, in one space. The major difference is that Binance is
apparently trying to be a pure crypto-exchange in the vein of GDAX
and other pioneers, except more efficient.
Changelly has specifically
positioned itself as an instant exchange where customers do not
have to make an account to move between coins and exchanges happen
in minutes. In this way, the user also needs to consider that he or
she has no power over transaction or over the time that
transactions take. Nothing is ever instant forever. Technological
errors and bugs happen, as we all know.
Even more importantly, Changelly
also does not facilitate any exchanges between crypto and fiat and
Binance does. On the other hand, similar to Binance and other
traditional crypto exchanges, Changelly does offer customer support
if any problems occur, though their team is never reachable
live.
In the original
report on the partnership, improving their customer
service via Binance’s example is among first items mentioned by the
Changelly CEO, Konstantin Gladych. The well-known CEO of Finance,
Changpeng Zhao, went a step further to say that the two exchanges
hope to learn and grow together.
Even with these promises of shared
growth, it is still not clear how this partnership can benefit
Binance. One slightly unknown but credible possible answer to this
related to negative news that broke today. Binance is now being
sued by no other than Sequoia Capital, the well-known Silicon
Valley venture-capital firm.
Reportedly, Sequoia is claiming to
have some sort of exclusive internal investment agreement with
Binance that dates back to just after Binance’s ICO in 2017. They
seemingly accuse the executive team of breaching said agreement and
starting to speak to other potential investors once Bitcoin’s price
began to fall near the end of last year.
All in all, it’s not exactly clear
whether Sequoia is suing Binance, Zhao personally, or both. Keeping
this in mind, however, it appears to be logical to say that
Binance’s partnership with Changelly could be an attempt to quickly
release positive press amid
controversy. If this supposition is taken to be true, it
brings the substance of the partnership into question.
Despite this, either way, as long
as Binance continues to be profitable, the agreement reasonably
benefits Changelly. It reportedly directly includes the right for
Changelly to use Binance’s API and rates on exchanges to improve
its service. Through this, Changelly could not only improve its own
website but also the websites of some firms that have integrated
its services, like Jaxx and Coinmarketcap.
Whatever the future holds, there is
also the possibility that Binance’s transaction speeds could be
enhanced through examining some of the ways that Changelly does
business.
All in all, every possible benefit
may be said to depend on Binance beating this lawsuit. Until then,
using either site will involve at least, some element of risk,
though one could argue that this is a relatively normal
consideration in a young industry.
By: BGN Editorial Staff