Earlier this week, Coinlife broke the news that China-based bucket shop Binance was preparing a launch into the Bitcoin mining pool sector. This news comes at a curious time with less than eight weeks before Bitcoin’s third halving event. After the halving occurs, many digital currency experts expect the transaction processing industry, aka mining, to undergo a contraction once the production price of block mining on the BTC network becomes economically untenable.
The news report was confirmed by Binance CEO Changpeng Zhao (CZ), who later tweeted about the new project. It is part of an expansion in the exchange’s financial services that include: staking, savings, credit cards, and loans.
Yes, there is a #BinanceMiningPool coming soon. 👀
— CZ Binance 🔶🔶🔶 (@cz_binance) April 1, 2020
The exchange is following in the footsteps of its industry peers, OKex and Huobi, which launched their mining pools in late 2019. CoinDesk reported that Sigmapool mining pool Head Jakhon Khabilov went on record stating the bucket shop is already offering potential clients “generous” referral bonuses as it has been reaching out to some miners in China to promote the upcoming new service. Coinlife published that Binance has already hired several specialists for this purpose and planned to launch the latest offering in Q2 of this year.
In an online AMA that touched on a wide range of topics, CZ provided more details about the Bitcoin mining pool. The new “Binance Mining Pool Team” would operate independently with more information still to come.