Token sales event is coming up soon and to ensure the fair and unbiased distribution of tokens during this, Binance has come up with a new lottery launchpad structure which will replace the existing distribution system of first come first serve strategy.
Binance is the world’s largest cryptocurrency exchange in terms of trading volume. It has listed over 100 cryptocurrencies on its platform. And when such a big platform comes up with something new, the market and traders are supposed to get influenced. So far the Launchpad of Binance has undertaken three successful token sales of known tokens like BitTorrent Token (BTT) of TRON, Fetch.Ai Token (FET) and Celer Network Token (CELR).
As we have already seen, the new system works on a lottery pattern. The lottery tickets will be issued after considering the balance available in the users’ BNB account twenty days prior to the lottery issuing day. More the BNB balance held by the users, more lottery tickets he/she can possess. However, one can not possess more than 5 tickets/account.
Binance has assured that the lottery system would be implemented fairly and the process will be transparent. Lottery tickets will be selected randomly, hence avoiding the chances of unfair distribution of tickets. However, before users enter the lottery system and seek to get benefited from, they will have to get their identity verified via KYC procedures of the respective regions. Once done successfully, the account will be tagged as verified.
The reason why Binance shifted to the new system is that the exchange giant itself witnessed a few issues with the earlier sales on its Launchpad. During the FET and BTT sales, the Launchpad experienced heavy traffic which leads to an extra load on the website causing many traders to stay away from the site.
During the CELR token sale, Binance CEO said:
“39003 people tried to buy, 3129 people got some. 35000 people will be somewhat unhappy… Some users experienced a caching issue that looked like they need to re-login, a refresh would solve the issue. Others still experienced network delay”.
As Binance is introducing a new system, it shows that it wants to stay clean and transparent about the related risks and trade-offs.
BNB price will get influenced by this news for at least 20 days. During these 20 days time, if BNB value gets cut down, the drop could outweigh any profits made by the new token.