Binance Launchpad to Hold Token Sales in New Lottery-Based Format

  • Binance, the world’s largest cryptocurrency exchange in terms of trading volume, has announced that it will be introducing a new type of “lottery format” for the next Binance Launchpad event.
  • Binance Launchpad allows crypto projects to conduct their token sales through the exchange's platform.

The developers of Binance, the world’s largest cryptocurrency exchange in terms of trading volume, have announced they will be introducing a new type of “lottery format” for the next crypto project that will be released through the Binance Launchpad. The exchange operator’s launchpad is a platform that allows companies to more effectively market and conduct their token sale.

As noted in a blog post published on March 24, 2019 on Binance’s website, the next Binance Launchpad token launch will be handled through a lottery. This, “instead of a first-come-first-served system” which had been used previously. According to Binance’s post regarding the announcement, the “number of tickets [users] can claim depends on the amount” of Binance Coins (BNB) they hold.

Users May Receive A Maximum Of Five Tickets

Specifically, the exact number of tickets a user is given is determined based on their Binance account balance “over a 20-day period.” If a user maintains a sufficient account balance for said period “leading up to the day of the lottery,” then they will reportedly be awarded “a maximum of 5 tickets per eligible account.”

Moreover, Binance claims its lottery draw will be carried out through “a transparent, randomized system with a random selection of lottery tickets based on tail digits.” This means that “users will be able to claim up to a maximum of 5 lottery tickets” according to a set formula. For example, if a user keeps at least 100 BNB and up to 199 BNB in their Binance account, then they will receive 1 lottery ticket - in order to participate in the exchange’s lottery program.

Multiple Ticket Holders Will Be Assigned Consecutive Numbers

If a user has at least 200 BNB tokens and less than 300 BNB in their account they will be given two tickets. Users who are eligible for receiving three or four tickets must also have a certain account balance. Users with 500 or more BNB tokens will be given the maximum 5 tickets. Binance’s blog post explains:

Each lottery ticket has a unique number. If you claim multiple lottery tickets, the numbers will be consecutive. For example, if you claim 5 tickets, your ticket numbers may be 100010, 100011, 100012, 100013 and 100014. These numbers are used in a transparent draw mechanism described later.

Users Will Decide Number Of Tickets To Enter

For every new token project introduced through Binance Launchpad, the exchange will reportedly reveal “the maximum number of potential lottery ticket winners.” Moreover, the specific “allocation amount” associated with each “winning ticket” will be announced “ahead of time.” As noted in Binance’s blog: “For example, 10,000 potential winning tickets, each representing 500 USD worth of tokens. This will change for each project on Launchpad.”

Before the lottery date for a project, Binance account holders “will be given a 24 hour period” during which they must decide “how many lottery tickets they wish to enter,” the exchange’s blog mentioned. A user can enter tickets according to a “maximum number to be based on their BNB holdings over the past 20 days” and “entering this ticket amount is a commitment to purchase the amount of tokens corresponding to [the user’s] eventual number of winning tickets.”

Binance Launchpad's Token Sales

As explained in Binance’s blog: “For example, if User B puts in an entry of 5 tickets and only 2 tickets end up winning, they are committed to pay for 2 ticket allocations (in BNB) for the tokens.”

As CryptoGlobe reported recently, the Binance Launchpad facilitated the launch of the Celer Network token sale, which concluded on March 19. Notably, it took only 17 minutes for the sale to complete. Celer (ticker: CELR) is the third project to hold a fundraising event on Binance’s crowdfunding platform. Others that have used Binance Launchpad to conduct their token sales include the BitTorrent token (BTT) and Fetch.AI (FET) sales which took place in late January and February of this year.

Given its success, other cryptocurrency exchanges like Bittrex and Huobi have launched their own token sale platforms to compete with Binance.

Coinbase Becomes First 'Pure' Crypto Firm to Become Visa Principal Member

Francisco Memoria

San Francisco-based cryptocurrency exchange Coinbase has become the first “pure” cryptocurrency firm to become a Visa principal member.

The membership was, according to Forbes, officially awarded in December 2019, but it wasn’t revealed to the public until today via a blog post published by the exchange itself. The membership will allow Coinbase to cut expensive middlemen when it comes to the issuance of its debit card, which lets users pay with cryptocurrency wherever Visa is accepted.

Notably, the principal membership also gives coinbase the power to issue debit cards for other companies, although the cryptocurrency exchange claimed it isn’t planning to issue them for others anytime soon. Visa, Forbes reports, has confirmed it granted Coinbase the principal membership, but clarified the firm itself isn’t accepting cryptocurrencies.

Using the membership, Coinbase is set to issue a new version of the Coinbase Visa card, which was initially launched in April 2019 with the financial services firm Paysafe Group Holdings, which charges a fee for its service. This new version could reduce the fees Coinbase’s card is currently charging users as it cuts the middlemen. If fees are reduced, existing card holders will have to re-apply to receive a new card.

Zeeshan Feroz, CEO of Coinbase UK, which received the membership, noted that users’ BTC holdings have always been seen as illiquid “because you have to sell them, you have to go through a process, withdraw the money, and then spend it.” The card’s goal, he said, is to change that:

What the card is trying to change is the mindset that crypto is tucked away, takes two days to access, and can actually now be spent in real time.

The Coinbase Visa card isn’t available to U.S. residents and won’t be in the foreseeable future. It is, however, available in 29 countries including Denmark ,Estonia, France, Germany, Sweden, Spain, and the U.K. IT lets users spend nine cryptocurrencies including bitcoin, ether, bitcoin cash, Brave’s BAT, litecoin, and others.

With the membership, Coinbase could make fees charged to companies outside the cryptocurrency space in payments made with its card a new source of revenue, one that depends less on crypto price fluctuations. Feroz acknowledged it’s a possibility, but revealed it’s currently not a part of the firm’s plan as its “primary focus” is to build its services.

Featured image via Pixabay.