Exchange Makes Changes to Token Sale Launchpad
Top cryptocurrency exchange, Binance could be credited for the resurgence of the ICO. They have rolled out their launchpad earlier in 2019 with great success. Every project posted so far managed to sell out in a matter of minutes, leaving legions of potential buyers empty handed. The launchpad worked on a first-come first-served basis, leaving many frustrated that they were unable to participate.
Why Use Binance's Launchpad?
Between 2017 to 2018, the ICO scene was proliferated with thousands of projects. Many of these projects were scams or just purely horribly managed. The majority of these coins and tokens released did not return the investment received. Many have died out and now appear on deadcoins.com which contains a list of over 1500 defunct tokens & coins.
The Binance Launchpad gave Binance's seal of approval to certain hand-picked projects. This gave investors peace-of-mind, knowing that the project is not a scam. So far, every project posted managed to return its investment. Notable projects include Bittorrent Token & Fetch.ai. It is also important to note that nearly every project posted had a very low small cap & hard cap. The funds raised for projects never exceeded $10M in cryptocurrency. This is a clear difference from The ICO days of 2017-2018, where many successful projects raised over $20M.
Following user outcry, Binance announced via blog post that it was making changes to its launchpad. It seems that it will no longer operate on a first-come first-served basis, but as a lottery instead for users that hold BNB.
As per their announcement:
In a fast-changing world, we listen, learn and adapt. We will use a new lottery format for the next project on Binance Launchpad.
- The next Binance Launchpad token launch will be conducted as a lottery, instead of a first-come-first-served system.
- The number of tickets you can claim depends on the amount of BNB you hold over a 20-day period in a Binance account leading up to the day of the lottery, up to a maximum of 5 tickets per eligible account.
- The lottery draw will be done via a transparent, randomized system with a random selection of lottery tickets based on tail digits (explained below).
- Account verification (KYC) and country restrictions will still apply."
Many users have reacted very positively to the news. BNB (Binance Coin) has shot up roughly 15% following the announcement. It is currently trading at roughly $17 at the time of writing this article. While it seems that there is some tough upward resistance, future upgrades to Binance could push it beyond $20. Future upgrades would include Binance's rumored margin trading platform.
Other platforms such as Houbi are following step & releasing launchpads.
It seems that Binance is maintaining and consolidating it's power. One thing that is certain is that Binance is becoming a force to be reckoned with in the world of cryptocurrencies. Lets just hope that it's a force for good and not evil.
Written by Jonathan Ganor
Writer & cryptocurrency aficionado