Today, Binance is launching the Binance Account Bound Token that functions as proof of KYC verification. Binance calls this special type of token Soulbound Token. Let's check it out.
Binance Account Bound Token $BAB
The Binance Account Bound token with the ticker $BAB is the first-ever Soulbound Token. Of course, this token is issued on the BNB chain. Soulbound tokens work as proof of identity on the blockchain.
Every Binance user who has successfully completed the KYC verification can now mint $BAB tokens. Some projects built on the BNB chain will introduce the $BAB tokens to their community. Until a few hours ago, it remained unknown what projects will use the $BAB token. According to this Binance Twitter threat, Fourteen leading projects across the BNB Chain will provide exclusive user incentives for the $BAB token. One of these projects is ApeSwap.
The $BAB token itself has no monetary value. However, according to Binance, you shall be able to earn rewards with your $BAB token.
Special Features
The $BAB token has some special features. First of all, you can not transfer your $BAB tokens to other users. The tokens are non-transferable. They have absolutely no monetary value and can not be traded on any exchange.
The $BAB tokens are also revocable. You can revoke them at any time.
Like NFTs, $BAB tokens are unique. Each verified Binance user ID can only mint one unique $BAB token only on a certain chain.
How to Mint $BAB Tokens?
When your account is verified then you can mint your own unique $BAB token. This works only on the Binance app, so make sure that you have the Binance app installed.
You will have to cover the gas fee that applies for minting your $BAB token. The initial gas fee is fixed at one $BUSD and will be deducted from your spot wallet.
You have to connect the non-custodial wallet that you are using to the Binance app. There are three ways to connect your wallet, depending on the type of wallet you are using. For a very detailed step-by-step guide on how to mint $BAB tokens, please check out this Binance support page.
In the end, your $BAB token will be displayed only on your on-chain wallet address.
My Final Words
Non-custodial wallets have some advantages compared to an exchange account. One of them is that your wallet is anonymous. As soon as you are holding a Soulbound token in your wallet like the $BAB token then this anonymity is surely over. That's why I see this token critically and, at least for now, I will not mint it.
What do you think about the Soulbound Token $BAB? Will you mint it and hold it in your wallet or do you prefer to stay anonymous?
Finally, I also like to remind you that my intention in this post is to raise your awareness of the new Binance Account Bound Token. My intention is not to replace your own research. I may look smart on my profile pic but I am not your financial sensei.
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