Binance Overhauls Its Launchpad Platform Introducing Lottery System To Token Sale Format
Binance has introduced major changes to its Launchpad platform, essentially transforming the way in which users will access token sales.
As per a blog post announcement published on March 24, the next token sale project to land on the Binance Launchpad will be undertaken based on a lottery format.
That means that the firm has removed the previous system that involved handling token sales on the basis of whoever was first in a queue first getting served first.
It meant that the platform has been operating on very competitive terms. However, with a significant number of clients queuing for the tokens but eventually failing to get them, the format reportedly became unpopular.
Elaborating on the new system, Binance said that it will take the form of a lottery ticket system whereby participants are eligible to claim a maximum of five tickets. These users must, however, hold Binance Coin (BNB) tokens for a consecutive 20 days before the lottery.
One ticket is equivalent to 100 Binance Coin (BNB).
Binance will thereafter make an announcement of the tickets that have won as well as the total amount that the winning ticket will get.
Participants will decide on the number of tickets they may want to stake as they take part in any lottery, but that will have to occur a day before the exchange announces the winners.
Again, the number of tickets a user is allowed will depend on how many BNB tokens they hold in the 20 days preceding to the lottery.
Binance has acknowledged that this new system could destabilize the trading of BNB, with fluctuations in prices occurring both before and after the sale’s snapshot time. Nonetheless, the platform notes that such side effects will likely be insignificant.
As per the blog post, other traders within the BNB ecosystem may take such destabilizations as opportunities and offer countertrades, thereby stabilizing the market.
The latest token to hit the Binance Launchpad was Celer Network (CELR), a $4 million sale that was completed last week. In February, the platform conducted a $6 million token sale for the Fetch.AI (FET) token, reportedly taking only 22 seconds to sell out.
Binance has ramped up efforts to expand its services and push for crypto adoption, most recently hinting at launching a fiat-to-crypto exchange in Argentina as well as a cash-to-bitcoin service in Australia that lets people buy BTC with cash.
And recently, changes observed with the exchange’s public Application Programming Interface (API) suggests that the platform could be looking at introducing margin trading in the near future.
Meanwhile, two cryptocurrency exchanges briefly overtook Binance as the largest crypto exchange by adjusted trading volume as listed on XBT.net. However, research has since suggested that both LBank and Bit-Z were among those exchanges determined to have posted fake trade volumes.
Disclaimer: This is not investment advice. Cryptocurrencies are highly volatile assets and are very risky investments. Do your research and consult an investment professional before investing. Never invest more than you can afford to lose. Never borrow money to invest in cryptocurrencies.