Report finds that Binance only distributed 10% of promised BNB tokens during ICO

An investigative study published successful Forbes on Oct. 5 recovered that Binance whitethorn person importantly overstated the occurrence of its archetypal coin offering (ICO) for Binance Coin (BNB) successful 2017.

According to the reporting, Binance laminitis and CEO Changpeng Zhao began to conceptualize BNB and circulate a achromatic insubstantial for the plus successful June 2017. Binance yet completed BNB’s ICO that July, astatine which clip Zhao declared the offering a success. Zhao besides made much circumstantial claims: helium stated that the ICO had raised $15 cardinal successful full and said that BNB’s terms averaged $0.15 per token.

Binance’s achromatic insubstantial besides acceptable retired details astir token allocations that indicated it would mint 200 cardinal BNB tokens. That full reserved 80 cardinal tokens for Binance and its executives, 20 cardinal for angel investors, and 100 cardinal for ICO investors.

However, according to the report, the existent allocations archer a antithetic story, uncovering that ICO investors really received 10.78 cardinal BNB alternatively than 100 cardinal BNB — astir one-tenth of the magnitude they supposedly received. It was besides suggested that Binance raised adjacent to $5 cardinal during its offering alternatively than $15 million.

Furthermore, angel investors received a doubled token organisation that really amounted to 40 million, alternatively than 20 million, BNB tokens.

Binance could power billions of dollars successful BNB

The revised merchantability results mean that Binance whitethorn clasp a monolithic magnitude of worth — up to 65 cardinal unsold tokens successful summation to its ain 80 cardinal BNB allocation.

Blockchain investigation showed that Binance and its members proceed to power the other tokens. It concluded:

“All of the suspected Binance wallets that we database held 63.1 cardinal units of BNB worthy $15.7 billion. Combined with … known wallets, Binance controls 116.9 cardinal tokens worthy $27.3 billion.”

Overall, BNB has a marketplace capitalization of $33 cardinal and ranks arsenic the fourth-largest cryptocurrency.

Binance did not respond to CryptoSlate‘s petition for remark by property time.

The station Report finds that Binance lone distributed 10% of promised BNB tokens during ICO appeared archetypal connected CryptoSlate.