BSC spoon fed thousands of Chinese retail investors the sweetness of yield farming, at minimal cost. It was an overnight product-market fit—and suddenly everyone understood why DeFi is here to stay.

BSC’s success gave new meaning to what an exchange token could do. As Coinbase’s valuation continues to grow ahead of its IPO, why can’t Binance, a close relative of Coinbase, enjoy its own ride? If Coinbase legitimizes the crypto industry, Binance showcases that there’s no limit in an unregulated crypto world.

Questions do remain for BSC, of course.

First, BSC seems to be appealing only to the China market. “The China crypto ecosystem in some ways is distinct from international crypto. It’s probably fair to say that BSC is viewed as more credible within China versus internationally. In the short term BSC’s speculation opportunities are proving quite attractive to Chinese retail punters and even institutional investors.” Matthew Graham, CEO of Beijing-based Sino Global Capital, told me.

Second, it’s not clear how Binance would compete with other centralized exchanges’ DeFi chains. For example, both Huobi and OKex launched their own blockchains in 2020, and Huobi has also doubled down on its HECO chain. Since the exchanges target the same cohort of Chinese customers and liquidity has no loyalty, will BSC maintain its leading position?

At the 30,000-foot level, I do wonder how BSC fits into the whole Layer 1/Layer 2 narrative. Is BSC a strong enough force to compete with Ethereum, despite CZ’s repeating statement that BSC is not a Eth-killer? Or will BSC function more like Ethereum’s intranet and serve a subset of the decentralized world, given that so much of BSC’s volume comes from Metamask, an essential component of Ethereum’s infrastructure?

Finally, let’s keep in mind that BSC is Binance’s second attempt at launching its own blockchain. Its first chain was Binance Chain, a fork of Tendermint and Cosmos SDK. That chain attracted little volume. Then Binance forked Ethereum, riding high on being EVM compatible, and that’s where we are now.

Perhaps BinanceSmartChain will work in the long haul. And if it doesn’t?

Blockchains are not a religion to CZ or Binance. The company is pragmatic and will go after anything that works and attracts a community. It won’t surprise me at all if Binance forks yet another chain as we enter into the multi-chain universe.

Did you know?

渣男, pronouncedzhā nán, means jerk/douche/trashy man. But it’s often used to describe tokens that never get pumped, or tokens that get dumped when you start buying in. In crypto, a token is referred as 渣男 when it gives you a hint of going up, but actually goes down. What’s your 渣男 token?