Cryptocurrency exchange Bithumb announced that it will support the decentralized finance (DeFi) applications of the blockchain launched by its competitor Binance.
According to a Nov. 9 announcement, Bithumb Global—the global subsidiary launched last year by the operator of South Korean exchange Bithumb—plans to launch multiple DeFi products on the Binance Smart Chain (BSC).
The projects that Bithumb Global plans to develop on BSC include derivatives, staking, initial project announcements and user airdrops, and multi-regional marketing efforts. Those efforts add to the projects already making use of Binance’s smart contract-capable blockchain.
The world’s top crypto exchange by market volume, Binance seems to be hell-bent on making sure that its newest blockchain will see lots of decentralized app development—and most importantly—that it wins a healthy slice of the DeFi craze. As Modern Consensus reported, at the end of October the exchange announced that it will finance five DeFi projects that are based on BSC.
The funds come from Binance’s $100 million accelerator fund for DeFi projects that leverage its smart contract-enabled blockchain which was already used to finance six more projects. Another sign of just how much the crypto exchange cares about DeFi applications using BSC is that the firm recently expanded its cloud solution to also facilitate the development of such projects on Ethereum or—you guessed it—the Binance Smart Chain.
A good sign of healthy activity on the Binance Smart Chain is that—like any other decently active blockchain platform—scammers also started building on it. As Modern Consensus reported just a few days ago, the cybercriminal behind a scam DeFi project based on BSC stole more than $345,000. The exchange commented:
“With new DeFi products emerging daily, it is difficult to verify the legitimacy of each and every project. We will continue to emphasize the importance of conducting individual due diligence and research before participating to avoid cases such as Wine Swap.”
Fortunately, in this case Binance identified and contacted the thief the day after—forcing him to return the funds.