Binance might be in the works to launch a new token named Binance Account Bound (BAB) that will be linked to its KYC credentials, reported TechinAsia. BAB will be Binance’s first soulbound token which is non-transferable and non-financialized. The upcoming pass will be built on its native platform, the Binance Smart Chain (BSC).
The BAB token will be exclusively available for users who have completed their KYC on Binance. After the KYC is confirmed, users can mint BAB tokens when it launches. Users who have not completed their KYC and are not on Binance will be unable to mint the token.
The exchange will launch the BAB token to identify valid accounts and weed out spam-operated bot accounts. The top deal will also allow third-party apps to airdrop NFTs or tokens in the future. The upcoming BAB token will be available on the trading platform’s official mobile app for iOS and Android users. However, the third-party apps will be allowed to airdrop tokens/NFTs to accounts that are KYC verified and hold BAB tokens.
“Techinasia: Binance is set to release Binance Account Bound (BAB), it’s first soulbound token/SBT that’s built on the BNBchain. BAB will be used as KYC credentials. SBT is a Web3 concept that was introduced by Vitalik Buterin,” tweeted Wu Blockchain.
The BAB token development came when reports were doing the rounds that Binance lost 90% of its users to KYC verification. The report also claimed that Binance is losing “billions in revenue.”
However, Binance CEO CZ took to Twitter and denied claims that the exchange loses 90% of users to KYC. “It’s a complete mis-quote. Look at the numbers…But the fact is, this type of headlines sell more clicks… Sad, but true,” he said.
When Will Binance’s BAB Token Launch?
Binance has not officially revealed details about the BAB token and has kept the developments under wrap. Therefore, the launch date for BAB remains to be unknown, and we will have to wait and watch for an official confirmation from Binance regarding the release of the token.