Binance, the major cryptocurrency exchange, has issued ONT-33D, a new token backed by Ontology (ONT), the crypto asset, and hosted on its own blockchain.
Binance Issues ONT-Backed Token For DEX Trading https://t.co/C533AiFzFf pic.twitter.com/qCYyNDHpda — Crypto XEGA – كريبتو زيجا (@CryptoXega) April 20, 2020
It has been reported that the new token is governed by a series of parameters known as BEP2.
However, a Binance spokesperson said that each ONT-33D token holds a backing of one ONT coin.
In theory, this should keep the token’s price the same as the ONT tokens traded on the open crypto market.
By nature, ONT coins travel on Ontology’s own main blockchain by making them incompatible with Binance’s decentralized exchange (DEX), as the two operate on different blockchains.
The spokesperson said:
“It will allow ONT holders to have decentralized exchange service.”
Likewise, under the same parameters, Binance announced Bitcoin BEP2 (BTCB) in June 2017, with each token backed by Bitcoin (BTC).
The spokesperson said:
“Many more DEX services will launch in the future. For example, Ontology will add a node staking feature soon, expecting to integrate it with the Binance DEX and enabling ONT holders to have full control over their assets while participating in ecosystem governance.”
Thus, the concept appears similar to wrapped Bitcoin (WBTC), a token issued on Ethereum’s blockchain, backed by Bitcoin, which allows BTC trading on ERC-20-based decentralized exchanges.
Source: Cointelegraph | Image: CoinCodex