Binance Chain is Failing and Letting Down Tokens
Binance’s mainnet called Binance Chain was released to much fanfare this year. With numerous tokens now on its books, it is now time to get a good reading on its success. Unfortunately, for CEO Changpeng Zhao, Binance and the tokens listed on the Chain, it does not make pretty reading.
The analysis of Binance’s Chain came from Chinese company, Caijing on Chain. The company analysed 37 projects which had been listed on the project. The company found that many of them have poor statistics.
What was most shocking from the report was that the vast majority had an extremely negative return on investment (ROI). The biggest declining token is eBoost (EBST), with its opening price of 0.033BNB falling to 0.00022745 BNB, a decrease of 99%. Other poor performers were BLOC platform token, MDAB, who had an opening price of 0.02 BNB with the current offer at 0.00074 BNB, a decrease of 96%.
These exceptionally bad ROI’s were not an anomaly. Infact, just ten of the 37 tokens saw a positive return of investment. This has to be a serious concern for a major exchange and company like Binance. Yet, despite this, Zhao and Binance will be sitting pretty as their own native token appears to be doing well, despite the failure of the tokens listed.
Other investors have lashed out at Binance’s latest initial decentralized offering (IDO) for their DEX, decentralized exchange. Some investors have called it a scam and fraudulent. @Babaganush111 sent a tweet, saying:
“Hi @cz_binance! today i got scammed at Raven Protocol IDO. At 9:00 i see 404 error, after DEX page loaded, after a second set price exact 0.0005 BNB which is huge scam every people think that 0.00005 BNB (because i FCFS and you and you don’t have time to check). I lost 40 BNB”
CZ responded saying that the decentralized offering was different to the IEO and this meant it was not under their control so sometimes these things can happen. Speaking at an event, he said:
“IDO is very different from IEO (first trading platform release). IDO is not under our control, we actually It has zero control and zero participation……If you are involved in IDO, you need to make sure that you understand all the rules and how DEX works, and what its technology is all about. You must rely on yourself, all should be very cautious. IEO is completely different.”
Binance’s BNB flying high as others fall
So what about the token’s listed on their Launchpad? Clearly Binance is profiting from this exposure and usage of the token alongside others, but it does not appear to be a two way street. How long will this last for before smaller tokens start to look elsewhere? Let us know in the comments.