Binance plans to release its own mining pool with four coins in South Korea, which is the first for the popular crypto exchange.
Reports from Coinlife the Russian crypto news agency on Tuesday was about the creation of a mining pool by Binance and the news was verified by several other sources in the crypto mining industry. More news about the pool was later tweeted on Wednesday by the CEO Changpeng Zhao.
“Some professionals have been recruited by the company to achieve this aim, some of whom are former employees from bitcoin mining application-specific integrated circuit company (ASIC) Bitmain. The release is planned to take place during the Q2 of 2020” this was as reported by Coinlife.
Head of Simapool, Jakhon Khabilov stated that “generous” referral bonuses were being offered to potential clients by Binance and outreach has been made to several miners in China to foster the coming of the new service.
The Effect of the Early Release by OKex and Huobi on Binance
The crypto exchange comes after some players in the sector like OKex and Huobi released their own mining pools in the month of August and September 2019 respectively. The exchange pools rank among the top 10 pools which produce the highest blocks in the Bitcoin blockchain, this was reported by Blockchain.com.
The vice president of Pooling which ranks currently as the number two most popular mining pool, Alejandro de la Torre has stated that the key motivation for various exchanges to enter the bitcoin mining industry is liquidity; Mining is the most inexpensive method to attach liquidity to trades, he stated.
The CEO of Bitriver mining farm in Russia, Ignor Runets has also stated that he believes the release of a mining pool is a logical move for the trade of crypto; “These businesses are already software-based, the attachment of professional skills is not needed. The support from the client would majorly overlay; so many users of the mining pool are also clients of exchanges.”