- By Pierre-Alexandre
March 25th, 2019
Binance developers have rolled out a new format for its Initial Exchange Offering Launchpad program, as it aims to tackle the issues encountered in the previous token sales carried out on the platform. The new form will be lottery-based and would give investors a fair opportunity to partake in token sale processes.
Binance Launchpad gets a new format
Binance published a blog post on March 24, announcing that token sales carried out on the Launchpad platform would be handled via a lottery. This method is set to replace the previous process of first-come-first-serve.
The blog post explained that the number of tickets a user can claim depends on the amount of Binance Coin (BNB) they hold in their wallet over 20 days leading up to the token sale. Each user will have a maximum of 5 tickets, and the lottery will be drawn transparently and randomly, ensuring that each account has a fair share of participation.
$BNB skyrockets after #Binance announces the next Launchpad sale lottery is dependent on how many BNB you hold. The more BNB, the more tickets you get, but maximum 5 tickets.— CryptosBatman ⚡ (@CryptosBatman) March 24, 2019
BNB is up 15% in the last 24 hours while most other coins are trading sideways. pic.twitter.com/MzpG0IXxce
Binance stated that “Users will be able to claim up to a maximum of 5 lottery tickets based on their BNB holdings over the 20 days leading up to the lottery draw date. Each user’s BNB balance will be recorded in a snapshot at 0:00 AM (UTC) each day. Should a user’s BNB balance drop below the minimum balance required on any given day during the 20-day period, they will be put into the lower threshold.”
Loving this new modification to the Launchpad offering structure by @cz_binance and the @binance team.— Tushar Jain (@TusharJain_) March 24, 2019
Binance is continuing to add new utility for $BNB, this is what market leadership looks like. Watch the other exchanges try to copy them in the next few weeks/months... https://t.co/Ay9EdCM8fZ
For multiple ticket holders, each lottery ticket will have a unique number, though they could be consecutive if claimed at the same time. For each project, Binance revealed that it would announce the maximum number of ticket winners that would take part in a token sale. “For instance, 10,000 potential winning tickets, each representing 500 USD worth of tokens. This will change for each project on Launchpad,” the blog post explained.
Anyone notice what @cz_binance and @binance built during a bear market?— The Crypto King (@JBTheCryptoKing) March 25, 2019
An IEO system where coins get vetted by #Binance 1st.
A tiered lottery system promoting HODLing the native $BNB token.
Became charitably oriented with millions donated 🙌.
Real builders build, 🐂 or 🐨🐼.
Changpeng Zhao open to suggestions
Several investors complained about the token sale process of the Celer Network, which was carried out on Binance Launchpad last week. Following the complaints, Changpeng Zhao, the CEO of Binance, wrote on Twitter at he is willing to listen to any advice that could help improve the process:
Will address some of the questions/concerns/feedback in this thread.— CZ Binance (@cz_binance) March 24, 2019
Our new Launchpad model is not set in stone. It’s the result of multiple detailed discussions over the weekend, while considering all angles. We will consider suggestions and will make certain tweaks. https://t.co/2wfeyZUyZH
Changpeng Zhao focused on solving the two most significant issues of the token sale process. First, he ensured that users with less than 100 BNB tokens on their Binance account could participate in any token sale, reducing the minimum requirement to just 20 tokens. Secondly, he put a cap to the number of tickets an investor can hold, ensuring that no one can keep more than five cards for a particular project.
The Binance CEO also reminded users that there is a robust KYC process still in place to ensure that whales do not open more than one account.
The Launchpad platform by Binance has been a success so far, and this has prompted other crypto exchanges such as Bittrex and Huobi to launch similar programs.
This decision received a flow of critics from Crypto Twitter:
You have to buy #BinanceCoin to "buy" your right to buy a token? #wtfmoments- https://t.co/BPT491EgMz How convenient that this pushes the price of the #BNB token. Eventually again just the ones with many BNB buy more tickets and have higher chance of winning #CryptoNews #bitcoin— Werner Hochleitner (@SickParvisMagna) March 25, 2019
Great way for people to get dumped on by both buying up $BNB to get in on this (with the very low chance of being one of the lottery winners) and buying whatever junk ICO you guys decide to list on your exchange. Not your fault though, people should know better by now.— Brad (@Brad2pointO) March 24, 2019
So we have to hold a minimum of 100bnb to get just one ticket?! The lottery idea is great, although, this isn't fair @cz_binance .— Niels (@nvds888) March 24, 2019
correct, Untrust Facebook, Centralized exchanges like Binance where they lack genuine decentralization.— CSP P2P exchange on stable coin. (@SBlockteam) March 25, 2019
Fyi, Binance is a Thief stealing CSP lottery system from their launchpad released recently. CSP is building this ecosystem like Facebook for Unbank and Unexchange. Join me.
If you allegedly have so much demand for an ICO that you need to come up with a convoluted lottery system just to make it "fair"...it would make more sense to just sell it on the open market...— James Edwards (@ProofofResearch) March 24, 2019
Unless there was no genuine demand for these ICOs in the first place #Binance pic.twitter.com/BAHY06Y8vx