Binance became yet another player in the crypto-lending industry after it announced its plans for the same on 26 August. With its already extraordinary customer base, Binance might even go toe-to-toe with giants like Celsius and Genesis, if phase one goes well.
Unlike other players, Binance’s lending for the select few coins is capped; meaning, the exchange will stop accepting after the cap limit is reached. Based on their announcement, Binance Coin [BNB] will have the highest return of 15% annually, which will be followed by Tether [USDT] at 10%, and Ethereum Classic [ETC] at 7%.
Unlike different lending platforms, Binance’s lending was on a first-come, first-served basis; meaning, whoever clicked faster and was lucky could get their lots placed for lending. Essentially, like a lottery. At press time, Binance had announced that BNB hit the cap 16 seconds after the lending service went live. USDT reached the limit in 3 mins, while ETC took over 9 minutes.
We have a habit of underestimating demand, every time! https://t.co/GT5vfgNDvB
— CZ Binance (@cz_binance) August 28, 2019
The total payout, if a single person, could have lent the cap, would have been a whopping $1.7 million after 14 days. Yes, that’s it, in a matter of two weeks, one would earn more than a million. However, according to the above tweet, there were approximately 900 subscribers who got their lots filled.
Speculation: Why ETC?
One thing that remains is the speculation of why ETC was selected and not other coins like BTC or ETH. While some speculate that this is a good thing and that Binance is trying to unbank the crypto-community, others say that this announcement is just a marketing gimmick and it will ultimately make CZ rich.