Binance Modifies Launchpad Token Sale Format to Lottery
In a blog post, Binance, one of the largest cryptocurrency exchanges by trading volume, revealed its latest modifications to the procedures made to its Launchpad token sale. In its announcement, the company states that it “will use a new lottery format for the next project on Binance Launchpad.” Earlier, the entire process was based on a first come, first served basis, which caused many users who joined the queues to be left out without any tokens.
The post also illustrates a lottery ticket scheme whereby possessing Binance Coin (BNB) tokens over the 20 days in the run up to the raffle, partakers will be able to collect up to five tickets, with 1 ticket per 100 BNB. The exchange will declare the number of tickets won and the stash of cash received by the holder of a winning ticket. A day before the victors are selected, customers will be able to select how many tickets they wish to use to take part in a given lottery, with the maximum amount calculated based on their BNB holdings over the preceding 20-day period.
While Binance acknowledges that the new model may result in minor BNB trading volatility before and after the snapshot period, it claims that the symptoms should be minimally added:
“Other market participants may view this as an opportunity, and countertrade to even out the fluctuations.”
As the name implies, Binance Launchpad is the company’s token launch platform, which ascertained last week a sale of $4 million worth Celer Network (CELR) tokens. The software supposedly carried out the sale of Fetch. AI (FET) tokens which generated $6 million in February in just 22 seconds.
Changes to the public application programming interface of Binance appear to disclose that the firm is actively modifying the platform to facilitate margin trading. Last Tuesday, two cryptocurrency exchanges, LBank and Bit-Z, surpassed Binancing on the standings of the CoinMarketCap on the normalized trading volume, but study released on 18 March by the Tie indicates that its volume is mostly false.