This week marked the launch of Binance Pool, a mining platform powered by one of the world’s largest cryptocurrency exchanges.
Coming less than a month after Binance’s CEO Changpeng Zhao confirmed rumors of this forthcoming addition to his brainchild company’s product family, the announcement paints the new mining pool as the bridge between “traditional mining and financial services.” The lowest fees in the market and seamless integration with a full suite of Binance’s financial products are the major selling points meant to lure miners. The news reinvigorated the debate about how big a crypto company can get before the community is justified in throwing the dreaded “c-word” (centralization, that is) at it. For Binance, criticism has been mounting up as of late. Even before the mining pool came about, the company stirred controversy by extending its influence into the field of crypto data aggregation with the acquisition of one of the industry’s favorite token price hubs, CoinMarketCap.
On top of that, the newly published outline of Binance’s prospective Smart Chain drew some sharp criticism in part for its governance mechanism’s alleged proneness to centralization. Is Binance crossing the line, becoming too big for an industry founded on the vision of disrupting centralized power structures?