GTR — Migration Revisited
In the vast and tumultuous seas of the cryptocurrency world, Ghost Trader has always strived to anticipate problems and complications before they arise. We have rooted our approach in a strategic planning mindset, looking to the horizon rather than what lies directly in front of us.
Earlier this year, we embarked on a rather significant move for the project by migrating from the Binance Smart Chain (BSC) to the Ethereum chain. As we explained at the time, we did not make this decision to migrate lightly. Rather than whimsical fancy, the team made the calculated move based on a whole host of factors. Considering recent developments, we believe that decision has been proven correct and prescient.
The Current State of Binance and BSC: Navigating Troubled Waters
As you probably have heard already, Binance, the world’s largest cryptocurrency exchange by trading volume, and its native blockchain, the Binance Smart Chain (BSC), have recently found themselves in the crosshairs of the US government. The U.S. Securities and Exchange Commission (SEC) has fired what amounts to a broadside, filing charges against Binance and its CEO, Changpeng Zhao, for a number of alleged misdeeds.
The allegations include operating unregistered exchanges, broker-dealers, and clearing agencies, and for misrepresenting trading controls and oversight on the Binance.US platform. No doubt, this new scrutiny will bog down the Binance management team, and could even mean that end for Binance.
At the very least, one could easily see a delisting of Binance’s native token, BNB. This could place an incredible amount of pressure on the BSC chain, in much the same way the SEC case against Ripple has negatively affected XRP, their cryptocurrency.
These charges have whipped up a tempest around the future of Binance and BSC. The SEC’s regulatory net now covers over $120 billion of cryptocurrency assets, including Binance’s BNB token. This could make BNB and other tokens harder to trade if exchanges shy away from listing them for fear of falling foul of the SEC.
Protecting our Flanks: A Strategic Decision
Every decision we have made involving GTR Capital has revolved around building a stronger, more robust platform for individual wealth management. Part of that means not just maximizing upsides, but also minimizing potential downsides as well.
When we set our course for Ethereum, leaving BSC in our wake, we considered several factors. We mostly covered the opportunities that Ethereum provides us when we covered the topic earlier in the year. In this piece, we will discuss a few of the more defensive aspects of the decision.
Stability, Size, and Reliability
One of the main reasons we chose to migrate was Ethereum’s more decentralized nature compared to BSC. While BSC is known for its speed and low transaction costs, it also suffers from being significantly more centralized. BSC has only 21 network validators running its blockchain.
In contrast, Ethereum boasts a much larger network of validators, involving many more participants. Not only does this align more with the decentralized ethos of blockchain technology, it means that Ethereum will likely prove more robust in the future. Additionally, Ethereum’s size and distribution indicates that it will much more likely receive regulatory treatment as a commodity, rather than a security.
As a result, our migration to Ethereum will likely provide us with a safe harbor from the potential fallout from Binance’s current regulatory storms. As the SEC’s charges against Binance unfold, there could be significant disruptions for BSC and its users. By being on the Ethereum chain, we are not directly affected by these developments. While we did not predict the exact timeline for these troubles Binance now faces, our team knew that in all likelihood, the scrutiny would come.
Charting a Course for the Future
In conclusion, our decision to migrate BSC to Ethereum has proven to be beneficial in the current market and regulatory climate. We remain committed to providing our users with a secure and reliable platform for managing and growing their assets. As always, we will continue to monitor the market and regulatory developments and make decisions that are in the best interest of our users and the Ghost Trader community. As we look to the future, we would like to thank our steadfast community of contributors for their continued support. We look forward to an exciting future on the Ethereum chain and beyond. Remember… this is only the beginning. And you definitely do not want to miss GTR 3.0.
Join Us
If you have just come across our project, or you are not yet a member of our community, we encourage you to join us on this exciting journey. And for our current contributors, stay tuned for more updates and developments as we continue to grow and evolve together.
No better time exists than the present to bridge the divide. Remember that we will be closing the doors soon. Please be sure to stay tuned to our social media outlets moving forward for updates and news of the Ghost Trader project. We invite you to check out our official Ghost Trader website, join us either on Telegram or Discord, follow us on Twitter and LinkedIn, and be sure to check out the podcast found here.
