Binance announced a change to the format of their Launchpad platform days after CEO Changpeng Zhao announced that he was considering a tweak to the allocation process. This tweak would favor long term holders over those who buy BNB only at IEO time. The change to a lottery system sent the price of BNB tokens racing another 25% after a run that has already seen it surge 3x since the turn of the year and reaffirmed Binance’s position as an exchange that is one step ahead of the competition.
— Binance (@binance) March 24, 2019
Binance’s new format will see a lottery system implemented for those who wish to participate in Binance Launchpad IEOs, with both the size and the length of the hold playing crucial roles in how many lottery tickets you will be assigned, as Binance outlined in the blog post announcing the change:
The move is a bid to eradicate the short-term pumping and dumping of the BNB token around IEO time and also reward those who buy BNB with the aim of participating in the IEOs, as the post noted:
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.
This request is unlikely to put off speculators however, as was evidenced by the reaction in the crypto community:
One of the reasons I have been bullish on $bnb for so long is that CZ has consistently been adding utility to the token. The lottery system is just another example of this, I am pretty neutral on the whole launchpad thing but it is great for BNB holders.
— Crypto Beak (@crypto_beak) March 24, 2019
so @cz_binance found a way to squeeze more juice out of $BNB. next pump news is probably margin trading collateralised with BNB, or at least another major fee reduction if you use it. what would you do if you woke up to a world with $100 bnb? pic.twitter.com/9alkQezS3C
— mantra (@thinkingaud) March 24, 2019
The more BNB you have the better your chances in lottery launch pad w/ IEOs.
Other tokenized projects should be aggressively stepping up their game w/ token incentives that drive longterm value. #marketeffects
— Token State (Tokenize the World) (@tokenstate) March 24, 2019
CZ Aiming for the Moon
It’s clear that Binance and CZ are really aiming for big things with the BNB token. With this change in the launchpad methodology, plus the imminent arrival of the Binance decentralized exchange and the Binance chain, the use case for the token will drive demand as the years go on. With Binance’s quarterly token burns built in, you could have the foundation for a spectacular success to rival that of Ethereum in years to come.
What do you think? Do you think Binance will continue its race up the charts and challenge the top 3? Let us know your thoughts below.