Was Binance Behind The Dozen Stake Pools On Cardano’s Blockchain?

Recently, there were a dozen stake pools on the Cardano network and traders wonder was Binance behind this? The biggest crypto exchange could be as the latest information from Daedalus shows that there are 18 stake pools with metadata indicating that they may have been founded by the exchange so let’s read more in today’s Binance news.

Some members of the Cardano community celebrated this move, others feared that it could bring more centralization to the platform. With more than 1000 stake pools operating on the Cardano blockchain, it was a matter of time before some of the biggest players on the market enter the space. According to the data from the Daedalus wallet, the first one to start with 18 stake pools on Cardano’s network was Binance.

Rick McCracken, the host of the Cardano effect podcast, was the first to comment on the emergence of the stake pools on Cardano tweeting screenshots of the pools titled BNP. However, despite the metadata of most of the stake pools listing the official Binance website, neither of the exchange or executives confirmed the authenticity, as McCracken wrote:

“Dear friends at @binance and @cz_binance are the pools on the Cardano blockchain really yours? This is an exciting and interesting development, yet ominous at the same time, so I ask out of pure curiosity. Thank you!”

While we are yet to see binance confirm the existence of these pools, many got their answer on the question “was binance behind it” and they believe the exchange is so deep in Cardano already. Many also celebrated this move saying that it could be a potential driver for the price and the increase of the K-parameters. However, not everyone believes that this is a positive development for the network. a huge portion of the community is wary of big players like Binance getting involved in staking.

Some also warned that allowing multiple pools from single sources, could have a huge effect on ADA, comparing the situation to the cartel block producers on the EOS blockchain. With the lower tax than most stake pools, Binance could attract a huge number of traders that want to pledge their coin to a trusted name. This move can be seen as a try to increase the centralization for Cardano, which the project was so keen on fighting.