Understanding the Binance Token Investigation
A recent investigation by Forbes, assisted by Gray Wolf Analytics and Inca Digital, has shed light on discrepancies between Binance’s ICO in 2017 and their original whitepaper.
- Analysis suggests Binance sold only 10.78 million BNB tokens during the ICO, far below the planned 100 million.
- Allocation to angel investors doubled from 20 million to 40 million tokens.
- Only 55 million tokens were distributed during the ICO and to angel investors, not the planned 120 million.
Current State of BNB Tokens
As of now, there are 154 million BNB tokens in circulation. Binance has burned 48 million tokens in the past 6 years. Gray Wolf Analytics reveals that Binance controls 76% of the supply, approximately 117 million tokens. This is contrary to the initial claim of 120 million tokens being distributed.
Only around 2000 wallets or individuals participated in the initial BNB token launch, significantly lower than anticipated.
Impact on BNB Price: Long-term Considerations
Here’s how the investigation findings could affect BNB’s price in the long run:
- Loss of Trust: Investor confidence in Binance and BNB may decline due to supply discrepancies, leading to a potential decrease in price.
- Regulatory Scrutiny: Questions about the ICO and token allocation could attract regulatory attention, resulting in penalties or sanctions that might negatively impact price.
- Reduced Circulation: Binance’s unexpected control over a larger portion of the supply might limit freely circulating BNB, increasing price volatility due to reduced liquidity.
- Fundamentals Unchanged: Despite concerns, Binance remains a top exchange, and BNB maintains utility on the platform, supporting the token’s value.
- Resilient Brand Loyalty: Binance users have shown loyalty despite previous issues, potentially mitigating long-term price impacts.
- Controlling Supply: Binance can influence price through token burning and supply control, providing stability mechanisms if required.
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