One Redditor, who goes by the name @enriquejr99, asked a question that would make the headline for today: is Binance stealthily implementing margin trading?
Supposedly a programmer, the Redditor located two extra Booleans included in the Binance public rest API documentation, which was updated last week. After a preliminary analysis, the netizen found out that “all 482 trading pairs have spot trading enabled and margin trading disabled.” The check on status of spot trading makes sense in regard to streamlining a spot trade; however, it strikes odd that Binance, a crypto exchange with no margin trading offered on its menu, requires a status check on margin trading in its coding.
@enriquejr99 comes up with a cogent presumption, “this API update implies that Binance is considering the implementation of margin trading features.”
If Binance decides to expand its businesses to span across a broader spectrum of trading options, such a step falls within the realm of conventional wisdom. Other competitors such as OKEx, BitMEX, and Bitfinex, have profited from the high-volume markets, and there is no reason why the No.1 crypto exchange should leave the cake unattended.
The reaction from the community is intricate.
Some Twitter accounts lauded the idea of Binance going for margin trading, while some others voted with their feet, accusing it of fanning the flames of speculation, just like BitMEX.
“Bear market won't end until Binance offers margin trading. Come on CZ,” wrote one trader @TraderSeneca, who claimed to be a full-time trader since 1998.
The enthusiasm is not echoed by people who are intimidated by the potentially disastrous shorting, while some argued that shorting adds liquidity and liquidity is good. As for who might benefit from the trading market, some challenged that the decision would only serve brokers well with more fees, and no value will be added to the long-term development of the ecosystem.
ZHAO Changpeng, founder and CEO of Binance, patronized a question leveled at him, asking about the coding change in API and possible margin trading. He answered, “We future proof our API framework as part of our system upgrades.”
By “future proof,” the founder – also popularly known as CZ – may refer to the roadmap mentioned in the Binance white paper. In the “Future Rollout” session, the Binance team mentions that, “We will roll out the platform in roughly the following order: Spot trading; Margin trading; Futures; Anonymous instant exchange; Decentralized (on-chain) exhchange; and more …”
So the recent changes made to the Binance coding indeed paves the way for the future margin trading. However, the founder refused to give a definitive answer to a scheduled timeframe, “No dates.”
Twitter titan Luke Martin replied to the message, complimenting on the iteration pace of Binance, and commented that CZ had brought up the same topic in their previous podcast interview. “Looks like you weren't kidding during our podcast that this was in the works!”
CZ replied, “We are serious all the time, never make jokes... :)”
For those who fear margin trading as “reincarnation of Satan,” Binance is coming for it. Brace yourself because they never make jokes.