A Steemit beta user, cool4y, claimed that Binance accumulated a lot of funds from the token sales on the Launchpad, enabling only the founder’s close friends and other BNB whales to buy a majority of the tokens and then sell them at huge profits.
In the social news community Steemit beta, the user, referring to the latest Binance Launchpad token launch, criticized the new lottery format of being “utterly unfair”. The user alleged that a BNB token holder who held at least 100 BNB for 20 days had a lesser chance of winning than a whale holding 10 different accounts and, hence, had access to 25 tickets. According to the user, the odds are more favorable for the latter and added that the resultant pump of over 15% massively profited “CZ and his friends”.
A similar sentiment was echoing in the crypto community following the announcement of the new format as opposed to the previous ‘first-come-first-served’ system. The community called out CZ for allegedly favoring the rich by discriminating against smaller investors and pandering the whales who have a much bigger pool of tokens.
A Twitter user, Niels, posted,
“So we have to hold a minimum of 100bnb to get just one ticket?! The lottery idea is great, although, this isn’t fair @cz_binance.”
The Founder and CEO of Binance, Justin Sun, in a bid to address the criticism he attracted on the social media following the announcement, stated,
“Feedback 1, whale issue, can’t afford to hold 100 BNB. Reducing it is possible, but would mean lower % chance of winning, and more dissatisfaction after the sale. You should only participate in LaunchPad sales with spare funds, and should have an adequate level at that.”
He also addressed concerns over whales creating multiple accounts and stated that it would be adequately checked by the strong KYC and anti-fake KYC measures implemented by the trading platform. During the Twitter interaction, CZ said that the Binance team would consider lowering the limit and added that while it’s impossible to please everyone, they would work on finding a middle ground.
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