Binance ups its game by updating the calculation method for its margin trading fraternity. Users claim that it may be a positive twist on ongoing developments.
Binance and Changpeng Zhao have been in the news multiple recently due to several updates and developments. This decision to escalate rampant developments in the space comes on the back of a growing need by the user base to bolster the cryptocurrency trading economy. In a bid to make the trading ecosystem more airtight, Binance has decided to update its calculation method of daily BNB holdings for margin accounts.
The world’s largest cryptocurrency exchange claimed that the process started from December 12, where the sum of the hourly snapshots of net BNB balance in both master and sub-account margin accounts begin getting divided by 24.
Users have also been asked to note that the net BNB balance will be the balance after removing the borrowed BNB and the interest from the total BNB balance. Binance will calculate the user data by recording hourly snapshots taken of margin account balances.
The last time the calculation mechanism was changed was almost five months back. During that change, Binance decided to switch from the balance being recorded in a single snapshot to the daily average BNB balance. The total daily average BNB balance was supposed to be calculated by taking the sum of multiple factors. This included the daily average spot account balance, daily average margin account balance, daily average sub-accounts balance, the daily average Binance futures accounts balance as well as the fiat account balance.
The recent move by Binance was appreciated by fans of the exchange, with xtrader3 claiming that if someone shorts BNB margin to maintain IEO-s, it may not be fair for HODLers.
Binance was also in the news recently when Leslie Tam, the former head of trading at the exchange, revealed that he had joined CoinFlex as its new chief strategy officer. He was earlier responsible for Binance’s OTC trading operation and is speculated to focus on CoinFlex’s physically delivered futures contracts. The exchange Is set t0 offer futures contracts at 30 cents, provided that Libra launches by December 2020. CoinFlex had stated:
“Facebook has the ability to rival the entire global banking system from day one, but, because of that fact, when that first day will be is far from certain. The political backlash has been brutal, and it’s anyone’s guess if Facebook will get this over the line.”
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