An investigative report recently published in Forbes has raised concerns about the accuracy of Binance’s initial coin offering (ICO) for Binance Coin (BNB) back in 2017. This report suggests that Binance may have significantly overstated the success of the ICO, casting doubt on the credibility of the cryptocurrency exchange.
According to the Forbes report, Binance founder and CEO, Changpeng Zhao, began the conceptualization of BNB in June 2017. A white paper outlining the details of the asset was circulated during this time. The ICO for BNB was finally completed in July 2017, with Zhao declaring it a resounding success. However, the report questions the veracity of Zhao’s claims.
The Forbes report reveals discrepancies in the figures provided by Zhao and the actual token allocations. Zhao claimed that the ICO had raised $15 million in total, with an average price of $0.15 per token. The white paper also stated that 100 million BNB tokens were allocated for ICO investors. However, the investigation uncovered that ICO investors only received 10.78 million BNB, a mere fraction of the promised amount.
The report further highlights disparities in the token distribution to angel investors. While the white paper stated that 20 million BNB tokens were reserved for them, the investigation uncovered that they actually received 40 million tokens. This doubled distribution indicates a lack of transparency and raises concerns about the fairness of the ICO.
Perhaps the most alarming revelation from the investigation is the significant number of possibly unsold tokens held by Binance. The report suggests that Binance may be in possession of up to 65 million unsold tokens, in addition to the 80 million tokens initially allocated to the exchange. The investigation noted that Binance and its members continue to control these extra tokens.
The findings of this investigative report raise serious questions about the credibility and honesty of Binance’s ICO for BNB. If the allegations are true, it would suggest that Binance intentionally misled investors and exaggerated the success of the ICO. Such actions undermine trust within the cryptocurrency community and may have legal repercussions for Binance.
Despite the controversy surrounding its ICO, BNB remains one of the largest cryptocurrencies in terms of market capitalization. With a market cap of $33 billion, it currently ranks as the fourth-largest cryptocurrency. However, investors and users should carefully consider the implications of the investigative report before engaging with the Binance platform or investing in BNB.
The Forbes report sheds light on the potential overstatement of the success of Binance’s ICO for BNB back in 2017. The discrepancies in token allocations, inflated figures, and questionable token distribution raise concerns about the transparency and credibility of Binance as a cryptocurrency exchange. It is crucial for investors and users to thoroughly evaluate the information presented in this report before making any decisions regarding BNB or engaging with Binance.