Binance will Conduct Tokensale as a Lottery

After the third successful ICO (IEO) Celer on Binance Launchpad, the exchange decided to make major changes in conducting of token sale. The reason is the growing dissatisfaction of investors, who once again did not get the opportunity to buy tokens. Plus, competition from other exchanges (Huobi, KuCoin, etc.), which are launching their platforms for IEO.

Solomon’s solution

The success of IEO was mainly for the exchange itself and its BNB token, which grew on every project. But most of investors couldn’t buy tokens CELR again as it was with BTT and FET early, on this FCFS (first-come, first-served) basis. The exchange stated that was because of long list and technical problems. It seems so, because now it is supposed to use administrative solution. Solomon’s solution is to drop tokens in the lottery. It is clear that only those who have BNB tokens on their accounts will have chances, and not at the moment of IEO, but not less than 20 days before. And depending on the amount, you can get from 0 to 5 lottery tickets.

And the balance will be strictly monitored every day. For each project, the number of winning tickets and the number of tokens for each ticket are determined in advance by the amount in USD. A day before the draw, user can decide how many tickets he takes (within the limits allowed for the number of BNB tokens on his account).

Here are the general rules of the lottery:

It is noteworthy that the numbers of lottery tickets are given sequentially. Those who are familiar with the theory of probability know that as a result of this, the chances of winning depending on the number of tickets practically do not increase. Nevertheless, Binance assures that this lottery model is fair and transparent, and has been used around the world.

Binance is also in a hurry to disclaim responsibility for the participation of users in the lottery – they say, see for yourself, and you should not keep BNB-tokens only for participation in IEO:

– There are significant risks. You are responsible for your own decisions. You should do your research and understand each project completely before taking any action. If in doubt, stay out. You are not forced to participate in any Launchpad events. We also strongly recommend that you don’t hold BNB just to participate in Binance Launchpad events. If you don’t want to hold BNB otherwise, then please don’t hold BNB.

It’s funny that now Binance propose the use of its tokens not only for buying new projects tokens, but also to pay for lottery tickets. If you win a couple of tickets – a pair of BNB will be written off your account.

Another warning looks ridiculous:

– BNB price will fluctuate during the 20 day period. If BNB price drops, it is entirely possible the drop in BNB price will outweigh any gains made by the new token. That is first assuming you win in the lottery draw. Further, the new token being sold is not guaranteed to increase in price. It may drop in price.

Until now, the price of BNB has only grown on the expectation of a new IEO. In addition, information about the new project, the exchange promises to announce in 2 weeks (and not in 20 days). So the point of this warning is zero. At the very news about the lottery, the BNB rose again by 15%, from $ 15.08 to $ 17.38 and is now trading at about $ 17.

Special opinion

Coinstelegram experts agree that the new hype wave associated with IEO, which Binance so successfully drives, is not justified by anything. The quality of projects is unlikely to have grown much over the year, which means that the story with last year’s ICO will most likely be repeated. Recall, then the projects were launched, their tokens took off for a short time, and then dropped as stones. The charts of all three successful IEOs at Binance confirm this (the take-off of BTT capitalization is associated with an Airdrop for TRX hodlers).

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