From delisting to launching 50x leveraged contracts, BSV returns to Binance

BSV Makes a Comeback on Binance Launching 50x Leveraged Contracts After Delisting

Author: Jaleel, Joyce, BlockBeats

The price of the ancient god coin Bitcoin SV (BSV) has experienced multiple fluctuations this year and reached its highest point of the year on October 20th. The most direct reason for this impressive increase may come from Binance’s announcement earlier today about launching BSV 1-50x perpetual contracts.

It is not uncommon for cryptocurrency prices to increase significantly after listing on Binance, as Binance has become an undisputed giant in the trading platform industry. However, when “Binance” and “BSV” are mentioned together, the community first thinks of the announcement made by Binance four years ago to delist BSV.

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At that time, CZ’s influence in the crypto community was far from what it is now, where just the number “4” could spread widely. Binance was only established two years ago, and BNB’s market capitalization had just entered the global top ten, so it couldn’t be considered a trading platform giant. However, CZ at that time actively participated in community discussions and, when faced with Craig Wright’s claim to be Satoshi Nakamoto, angrily criticized him on Twitter and delisted BSV from Binance, claiming it was a contribution to the blockchain ecosystem.

At that time, the community considered CZ’s decision to delist BSV as “having a strong attitude” and it received a wave of good reputation and attention. However, no one expected that four years later, Binance would launch leveraged BSV contracts with up to 50x leverage.

Craig Wright and BSV: The True and False Controversy of Satoshi Nakamoto

Let’s go back to 2017 when developers who supported larger blocks initiated a hard fork of Bitcoin, resulting in Bitcoin Cash, which directly increased the block size to 8 megabytes. The Bitcoin community officially split into two factions. Those who supported smaller blocks continued to maintain the original Bitcoin blockchain, while those who supported larger blocks created the new Bitcoin Cash blockchain.

After the first fork, BTC and BCH developed separately, but it was clear that “there are only 0 and countless forks.” One year later, in November 2018, BCH, which had gone through a hash war, was hard forked again into BCH ABC and BSV.

Interestingly, the founder of BSV, Craig S. Wright, has been claiming to be Satoshi Nakamoto in various public occasions, and he publicized it even more after this fork. During the 2018 Deconomy conference, Craig Wright was invited to participate in the panel discussion titled “Bitcoin, Controversy over Principle.” During his speech on the Lightning Network, he was harshly called a fraud by Vitalik Buterin, the founder of Ethereum.

The controversy over whether Craig Wright is the real Satoshi Nakamoto still doesn’t have a definite answer, after all, he hasn’t provided concrete evidence.

For most members of the community, since Craig Wright is unable to provide any on-chain activity as evidence to prove himself as Satoshi Nakamoto, it is seen as a carefully orchestrated publicity stunt and deception.

However, four years ago, BlockBeats conducted an interview with Craig Wright, where he expressed that he didn’t care about how others mocked and questioned him. He has 871 patents and 1500 papers, and he will continue to strive forward. He also emphasized once again that Bitcoin is not anonymous but rather private, revolving around government regulations.

Additionally, in some interviews, Craig Wright has shown his expertise in technology when expressing his views on blockchain technology. This is why he has been referred to as “the person closest to Satoshi Nakamoto in terms of technology.”

CZ was also a member of “we are all hodlonaut”

At the same time as Craig Wright claimed to be Satoshi Nakamoto, the crypto community was spreading the “Bitcoin Lightning Torch” experiment, where Bitcoin transactions of 100,000 satoshis (the smallest unit of Bitcoin, equal to 0.001 Bitcoin) were sent via the Lightning Network. The receiving party of this transaction would add 10,000 satoshis and send it to the next participant, and so on. If the amount contained in the torch was larger than the previous year before it failed, it would indicate that the network had grown.

The “Bitcoin Lightning Torch” attracted many prominent figures, including financial giant Fidelity Investments, LinkedIn co-founder Reid Hoffman, Lightning Labs engineer Joost Jager, and Twitter co-founder Jack Dorsey. The current “crypto leaders” CZ and Justin Sun also participated in this experiment.

Craig Wright’s grandiose claims of being Satoshi Nakamoto naturally sparked resentment and dissatisfaction among participants of the “Bitcoin Lightning Torch,” who believed that Craig Wright’s actions undoubtedly undermine Bitcoin’s credibility and the value of the crypto spirit.

The initiator of the Lightning Torch, Hodlonaut, often sarcastically ridiculed or denied CSW, which enraged CSW. On April 12, 2019, CSW claimed that he would file a lawsuit against Hodlonaut and even publicly offered a reward of 70 BSV (approximately $5000) to gather Hodlonaut’s personal information.

Under pressure, Hodlonaut deactivated their account, but this backfired and became a catalyst for anger within the BTC community. Those who opposed CSW spontaneously formed an alliance. Many people changed their Twitter usernames to Hodlonaut and their profile pictures to Hodlonaut’s former picture in support of “we are all Hodlonaut.” Some members also started fundraising for legal assistance for Hodlonaut. CZ was also once a member of “we are all hodlonaut.”

Delisting BSV is a contribution to the blockchain ecosystem

At that time, CZ had just made a name for himself and his influence in the crypto community was not as strong as it is now. However, he expressed his firm stance by openly criticizing Craig Wright on Twitter and warning that if he continued to claim to be Satoshi Nakamoto, Binance would delist BSV. This was CZ’s resistance to Craig Wright’s threat to sue Hodlonaut.

“Craig Wright is not Satoshi. Anymore of this sh!t, we delist!” CZ made a strong statement. This tweet attracted a lot of attention, and CZ’s action was described as “threatening to delist BSV.”

As the CEO of Binance, CZ’s statements are bound to affect the market on his trading platform. He has mentioned in multiple interviews that he does not want to interfere with market behavior, but regarding this incident, CZ said, “I am not on the technical side, but I am against fraud. Before signing, everyone is Satoshi Nakamoto, except Craig Wright.”

And on April 15th following this, Binance indeed carried out its previous warning and officially delisted BSV. In the announcement, several factors considered when delisting tokens were mentioned, including “contribution to the entire blockchain ecosystem.”

Surprisingly, after the announcement, the market price of BSV plummeted by 12% and dropped to 13th place in market cap. However, BCH experienced a rise. Although BSV was delisted from more than just Binance at the same time, no one expected CZ to be so decisive and strong in his attitude. This undoubtedly increased Binance’s influence within the community.

At the same time, most members of the BSV community thought this was a good thing, as BSV moved closer to decentralization through Binance’s delisting.

Binance’s choice: From resolute delisting of BSV to launching 50x leverage contracts

Four years ago, what drove Binance to decide to delist BSV was their commitment to voicing out for the crypto community and upholding the principle of “Do the right thing.”

After four years, Binance launched BSV contracts with leverage of up to 50x, leading to a nearly 30% surge in BSV’s price in just two hours.

Someone commented that “BSV is the real Bitcoin, and CSW is undoubtedly the real Satoshi Nakamoto.” Although such views are more of a joke or satire, the narrative in the cryptocurrency community has changed significantly, and CZ is no longer keen on expressing his attitude.

After all, that was already four years ago

Why did Binance’s stance change drastically from delisting BSV to launching a 50x leverage contract?

Some have pointed out that CZ’s public statements sometimes contradict his private actions. For example, in 2018, there was a major disagreement between CZ and Sequoia Capital during negotiations for financing. Sequoia Capital sued CZ in Hong Kong court for violating the exclusivity agreement. CZ denied these allegations, and the lawsuit lasted for several years.

At that time, CZ tweeted that all projects applying to list on Binance in the future would be required to disclose any direct or indirect connections with Sequoia Capital.

However, several years later, as relations between Binance and Sequoia Capital gradually improved, this requirement seems to no longer exist.

In a previous interview, CZ talked about this issue. “The lawsuit lasted for several years, and we eventually won comprehensively. After the lawsuit ended, we invited this potential investment institution to become a limited partner of Binance Labs’ second-phase fund. I can happily say that we still maintain a good relationship with them to this day, and most issues can be resolved.”

This also shows that Binance’s public decisions may not always reflect its final strategy. Some also argue that people’s ideas and positions can change over time and in evolving circumstances. After all, it has been four years since these events.

Doing the right thing at the right time

Choosing the right timing to launch contracts based on market trading volume and attention is one of Binance’s marketing strategies as a trading platform. For example, when news broke that DODO was being market-made by DWF Labs and its price surged over 50% in 24 hours, Binance immediately listed DODO’s 20x leverage perpetual contract.

For a long time this year, the biggest narrative in the cryptocurrency community was the Bitcoin ecosystem. When Ordinals was hot, Binance timely launched Ordinal NFT, Ordinals Engraving, and other services. And as we all know, the hottest topic this week is whether the Bitcoin spot ETF will be approved or not.

On October 16th, news broke on social media that the SEC had approved a Bitcoin ETF, presented in “shocking” uppercase letters by the cryptocurrency old-timer media, Cointelegraph. However, it quickly became clear that something was amiss. Multiple sources stepped forward to debunk the news, and it was determined that the story was likely fake news. At present, there is no evidence to confirm this. BlackRock has stated that their Bitcoin spot ETF application is still under SEC review. Cointelegraph has since deleted their previous false news tweet and issued an apology.

Related reading: “A $100 million, epoch-making piece of fake news.”

Although it has been confirmed as fake news, the market’s reaction was indeed real. Bitcoin, with a market capitalization of $550 billion, broke through several significant levels, reaching $30,000, and everyone shouted, “The bull market is back!”

Perhaps this is also one of the reasons why Binance relisted BSV and introduced 50x leverage contracts at this time. After all, as time passes and the market environment changes, CZ and Binance face new challenges and pressures, leading to changes in decisions and positions. This is not just about adaptation; it is also about survival and development.

Recalling CZ’s firm declaration of “Do the right thing” when he decided to delist BSV in the past, it not only represented CZ’s decision at the time but also reflected Binance’s values and stance.

In the context of that time, delisting BSV was the right thing for Binance to do. Now, with the passage of time, relisting BSV with 50x leverage contracts, can we also say that CZ is doing the right thing?

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