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A Highly Anticipated Ethereum Competitor Is About to Begin Trading – Here’s the Latest on Polkadot

August 19, 2020

Cryptocurrency exchange firms Kraken and Binance will launch trading of the Ethereum challenger Polkadot (DOT) on August 18th.

Kraken users can exchange Polkadot for the US dollar, euro, Bitcoin (BTC), and Ethereum (ETH), while Binance users can trade DOT for BTC, Binance Coin (BNB), Binance USD (BUSD), and Tether (USDT). Kraken says it also supports DOT staking with 12% annual rewards. 

Polkadot is co-founded by Ethereum co-creator Gavin Wood. It’s designed to enable the transfer of custom assets and data across public and private blockchains. The platform uses WebAssembly for its virtual machine, and aims to attract coders used to working on smart contract platforms such as Ethereum. It’s also an early adopter of the scaling solution sharding, which will be integrated into Ethereum 2.0. The project is backed by the high-profile crypto investment firm Pantera Capital.

The token will undergo a redenomination on August 21st, so traders may see a difference in their DOT balance, although the total value of their coins will remain unchanged. Binance explains the implications of the redenomination on its platform. 

“With the current market price of pre-redenominated DOT at approximately $370 USD, the market price of post-redenominated DOT on Binance may be around $3.70 USD, assuming the price does not change.”

Polkadot uses DOT to maintain and operate the network. The token is used for making payments, staking, and delegating.

Polkadot’s decentralized and permissionless mainnet officially launched in July.

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured Image: Shutterstock/steved_np3