2023-10-06 16:03:18
The native token of the crypto exchange Binance, BNB, was investigated by Forbes, and during the investigation, it revealed several problems surrounding the original Initial Coin Offering (ICO). A report by Gray Wolf Analytics and Inca Digital claims that of the 100 million tokens offered, less than 11 million were actually sold during the sale. After this failure, Binance apparently decided to double the allocation to angel investors such as Matthew Roszak and Roger Ver. The report also claims that Binance “probably raised less than $5 million”. That’s significantly less than the $15 million that founder and CEO Changpeng Zhao bragged regarding on LinkedIn. The end result of the failed ICO is said to be that Binance held much more BNB than planned. And since BNB became more and more valuable over time, this later brought great financial benefits to the company. Forbes highlights in the report that this may have been because investors decided to keep the BNB tokens on the exchange, and therefore the method of token distribution was not clear. One of the primary touted benefits of BNB when the token was issued was that it would provide a discount on Binance fees and that it might be used as gas by users for Binance functions, thus encouraging many buyers to hold assets on the exchange. Dark Clouds Gather Over Binance However, even following that, questions remained regarding the distribution of BNB. I have….Qvestions. pic.twitter.com/e8qhY896h8 — Deso,GoV – Electric spaceflight is real! check bio (@DesoGames) October 5, 2023 Deso, a cryptoanalyst publishing under a pseudonym, recently pointed out that according to Binance’s latest “proof-of-reserves” statement, only regarding 33 million of the total 150 million BNB are currently stored on the Binance exchange, and there are regarding 29 million with customers. However, last November, Binance published a transparency report sharing the addresses of many hot and cold crypto wallets. Disturbingly, these titles record much more than the proof of reserves would seem to indicate. These wallets appear to hold around 53 million tokens. That is, according to their claim, it is regarding one and a half times the amount they own (33 million BNB tokens). In the case of Binance, it has already been revealed that it previously did not keep the appropriate collateral for the “Binance-pegged Binance Dollar” separate. Binance is currently facing several legal and regulatory issues. Among others, a lawsuit filed by the Securities and Exchange Commission and a lawsuit filed by the Commodities Future Trading Commission. In addition, there have already been rumors that the prosecutor’s office is allegedly preparing to indict them on charges of money laundering.
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