THE COMMUNITY ATTEMPTS TO FIGURE OUT WHY BINANCE AND COINBAS | Global CRYPTO News
THE COMMUNITY ATTEMPTS TO FIGURE OUT WHY BINANCE AND COINBASE ARE MUTE ON BITCOIN LIGHTNING.
Several community members speculated that the Lightning Network adoption may be against some crypto exchanges’ business objectives or just not a priority for others.
The integration of the Bitcoin Lightning Network has begun to gain traction among cryptocurrency exchanges all around the world. Some of the world’s top crypto trading platforms, on the other hand, do not appear to be in a rush to adopt the protocol.
Following in the footsteps of BitPay and the Kraken crypto market, Robinhood, a cryptocurrency trading app, announced Lightning support last week.
Given that the primary purpose of the Lightning integration is to lower the cost of Bitcoin (BTC) transactions and speed up network transfers, it’s understandable to question which cryptocurrency exchanges have yet to implement Lightning support.
Lightning is not mentioned by Binance, Coinbase, or FT
The rate of Bitcoin LN adoption is not universally praised. The lack of development for the Lightning Network integration among major crypto exchanges disappoints David Coen, a software quality assurance tester and crypto enthusiast. He gathered information from official sources, social media accounts, and Lightning explorers like 1ML and Amboss, only to discover that Binance, Coinbase, and Bithumb, a prominent South Korean crypto exchange, aren’t on the list of “Lightning exchanges.”
FTX has also declined to comment, despite the fact that it isn’t on Coen’s list. FTX said on its official Twitter account in January of last year that it “probably pays more in transaction fees than any other single company in the world.”
There is a slew of probable explanations for why some of the world’s major crypto exchanges have yet to implement Lightning functionality.
Due to the high cost of withdrawals on exchanges like Binance, one Redditor speculated that the Lightning Network’s availability would be connected with fewer incentives to hold Bitcoin on those exchanges. “However, implementing it may not be beneficial to Binance. He stated, “I personally want to use the Lightning Network to move all of my BTC trades to cold storage.”
According to Coen, Lightning deployment may not be a top priority for certain big crypto exchanges, and it may even be incompatible with their business objectives for others.
“I believe Binance has no interest in integrating Lightning Network deposit or withdrawal since it may go against their business intentions,” Coen added. He speculated that Binance would be more interested in encouraging the use of its own blockchain networks, such as the Binance Beacon Chain and the Binance Smart Chain, for withdrawals.
