Binance Offering $100k in Free Crypto to Test Decentralized Exchange

Binance cryptocurrencies decentralized exchange blockchain

Leading cryptocurrency exchange Binance is offering free crypto worth $100,000 in a bid to encourage more people to test its soon-to-be-launched decentralized exchange.

In a tweet posted by the firm’s CEO, Chapeng “CZ” Zhao, he confirmed the giveaway to encourage more people to test the platform before it goes live.

“To test the hell out of @Binance_DEX, we are giving away roughly $100,000 USD equivalent, in REAL $BNB, as reward for our testnet trading competition.”

The plan is designed to launch the live version of the exchange more quickly, and will see users offered crypto in BNB, Binance’s own crypto token.

According to the firm, the funds will be given away as prizes for users getting involved in a simulated trading competition, which is set to get underway this week.

The event will be open to Binance customers who hold at least one BNB. Each user is eligible to sign up 20 Binance Chain addresses, with up to 200 BNB tokens available per address.

The competition will have two separate legs, with prizes available for each individual competition. The first, dubbed “Token Competition for Healthy Price Volatility,” will see users issuing and listing tokens on the testnet version of the platform.

“The addresses that own tokens will be ranked in terms of the sum of each token price’s volatility over every five-minute interval on the ‘Token’/BNB trading pair during the competition period.”

The exchange confirmed prizes of up to 3,000 BNB were available for this first part of the competition.

The second leg, known as “Absolute Return Competition,” will see traders compete to make the most they can using different trading strategies, with prizes ranging up to 1,000 BNB. At the time of press, BNB was worth $11 per token.

According to the exchange, the prize money is designed to attract large volumes of crypto traders to put the decentralized exchange through its paces, before the mainnet version goes live.

The decentralized exchange exists within a blockchain environment, rather than running through centralized servers. This allows for lower transaction costs, more responsive pricing and greater security.