Binance Crypto Exchange Is Launching Its First Bitcoin Mining Pool

Binance has been offering "generous" referral bonuses for its new crypto mining pool.

AccessTimeIconApr 1, 2020 at 3:16 p.m. UTC
Updated Sep 14, 2021 at 8:24 a.m. UTC

Binance is planning to launch its own mining pool, a first for the popular crypto exchange.

The news was broken Tuesday by the Russian crypto news publication Coinlife and later confirmed by three sources in the mining business. Binance CEO Changpeng Zhao tweeted about the pool on Wednesday.

“The company has already hired some professionals for this purpose, some of them former Bitmain employees. The launch is planned for the Q2 2020,” Coinlife wrote

Jakhon Khabilov, head of the Sigmapool mining pool, said Binance 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. 

The exchange is following the lead of its peers, OKex and Huobi, which launched their own mining pools in August and September 2019, respectively. Both exchanges’ pools are currently among the top 10 pools producing the most blocks in the Bitcoin blockchain, according to Blockchain.com.

Alejandro de la Torre, the vice president of Poolin, currently number two most-popular mining pool, says the key motivation for exchanges to get into the bitcoin mining game is liquidity: Mining is the cheapest way to add liquidity to exchanges, he said.

Igor Runets, CEO of the Bitriver mining farm in Russia, believes launching a mining pool is a logical step for a crypto exchange: “Both these businesses are software-based, so no additional professional skills are needed. The client base would largely overlap: many mining pool users are also clients of exchanges.” 

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
A New Chapter of Web3: Solana Unveils Smartphone ‘Saga’; Moody’s Downgrades Coinbase

The most valuable crypto stories for Friday, June 24, 2022.

CoinDesk - Unknown
2
CoinDesk - Unknown
How Are Institutions and Companies Investing in Crypto?

From putting bitcoin on their balance sheets to setting up shop in the metaverse, the ways brands and institutions are investing in cryptocurrencies continues to expand.

CoinDesk - Unknown
3
CoinDesk - Unknown
Consensus 2022: Hollywood, Colleges, Conferences vs. Crypto

The state of crypto and economics live from Consensus 2022 in Austin, Texas.

CoinDesk - Unknown
4
CoinDesk - Unknown
Bitcoin se estabiliza cerca de $21K; inversores esperan evitar otra caída el fin de semana

Los analistas se cuestionan si BTC podrá mantenerse por encima del umbral de $20.000 en un clima de desconfianza entre los inversores.

CoinDesk - Unknown