Binance’s ICO under scrutiny amid regulatory lawsuits and alleged discrepancies By Investing.com
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New investigations into the initial coin offering (ICO) of Binance’s token, BNB, suggest that the event was less successful than initially reported. The research, conducted by Forbes, Gray Wolf Analytics, and Inca Digital, revealed that less than 11% of the total tokens were sold.
In response to the underwhelming ICO, Binance reportedly increased allocations for angel investors such as Matthew Roszak and Roger Ver. This move has raised questions about the company’s fundraising claims. Changpeng Zhao, Binance’s founder and CEO, had previously announced that the firm raised $15 million through the ICO. However, these investigations suggest that the actual figure was closer to $5 million.
The distribution of BNB and Binance’s proof-of-reserves have also come under scrutiny. Deso, a pseudonymous cryptocurrency researcher, has pointed out discrepancies in Binance’s transparency report which shares its hot and cold wallet addresses. Issues have also arisen regarding the ‘Binance-pegged Binance Dollar’.
These revelations come at a time when Binance is already facing legal and regulatory challenges. The company is currently dealing with a lawsuit from the Securities and Exchange Commission (SEC) and another from the Commodities Future Trading Commission (CFTC). These lawsuits add to the growing concerns around Binance’s operations and its token offering.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
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© Reuters
New investigations into the initial coin offering (ICO) of Binance’s token, BNB, suggest that the event was less successful than initially reported. The research, conducted by Forbes, Gray Wolf Analytics, and Inca Digital, revealed that less than 11% of the total tokens were sold.
In response to the underwhelming ICO, Binance reportedly increased allocations for angel investors such as Matthew Roszak and Roger Ver. This move has raised questions about the company’s fundraising claims. Changpeng Zhao, Binance’s founder and CEO, had previously announced that the firm raised $15 million through the ICO. However, these investigations suggest that the actual figure was closer to $5 million.
The distribution of BNB and Binance’s proof-of-reserves have also come under scrutiny. Deso, a pseudonymous cryptocurrency researcher, has pointed out discrepancies in Binance’s transparency report which shares its hot and cold wallet addresses. Issues have also arisen regarding the ‘Binance-pegged Binance Dollar’.
These revelations come at a time when Binance is already facing legal and regulatory challenges. The company is currently dealing with a lawsuit from the Securities and Exchange Commission (SEC) and another from the Commodities Future Trading Commission (CFTC). These lawsuits add to the growing concerns around Binance’s operations and its token offering.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
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