Binance Launchpad Holding Harmony (ONE) Token Sale With Updated Lottery Rules

On Thursday (May 16), Binance announced that the fifth cryptoasset to go on sale this year on its initial exchange offering (IEO) platform, Binance Launchpad, would be the Harmony (ONE) token.

According to a FAQ-style blog post Harmony published on 23 April 2019, the blockchain startup "helps businesses build marketplaces of fungible tokens (energy credits, security offerings) and non-fungible assets (game collectibles, real estate)." Also, it is working on "zero-knowledge proofs for data sharing (ad exchanges, credit ratings) while preserving the consumer’s privacy." 

Harmony hopes that its fast and secure blockchain architecture will eventually be able to support billions of users participate on decentralized marketplaces.

Harmony released its testnet (2.0) last month, and it is planning to launch its mainnet in late Q2 or early Q3 2019. 

The Harmony token has various uses on the Harmony network:

  • Staking so that you can become a validator in order to earn block rewards and transaction fees. 
  • Paying transaction, gas, and storage fees.
  • Voting (on-chain governance of the protocol).

22.4% of the 12.6 billion token supply was sold in Harmony's seed round. Current investors include Blockchain Assets, Consensus Capital, Qtum, and Skunk Capital.

Binance says that the Harmony token sale will be using the lottery format (the recording of users' BNB balances starts on May 19 at 23:59:59 UTC), but with two changes:

  • Binance is now calculating for each user account the average BNB holding over the holding period; this is calculated by taking the average of the BNB balance at 23:59:59 UTC on each day in the 7-day holding period.
  • Users may now sign the token purchase agreement "any time up until the end of the ticket claim period."

Per Binance's blog post, here are some of the key details about this token sale:

  • The Launchpad session starts on May 27 at 06:00 (UTC) and ends on May 29 at 08:00 (UTC). 
  • The hard cap is five million dollars.
  • 12.5% of the total token supply (i.e. 1,575,000,000 ONE tokens) is on offer.
  • The token price for this public sale will be $0.003175 (the BNB figure will be specified on the lottery draw date).
  • The maximum number of winning lottery tickets is 16,666.
  • The allocation per winning ticket is $300 (i.e. 94,488.18 ONE tokens).
  • The ONE token will be a BEP2 token issued on Binance Chain

Bitfinex Wants to Offer 100x Leverage For Crypto Derivatives Trading

Michael LaVere
  • Bitfinex will offer 100x leverage trading for cryptocurrency derivatives
  • According to the exchange's CTO, the hedging product is "ready for prime time"

Cryptocurrency exchange Bitfinex revealed it wants to offer derivatives products with up to 100x leverage for cryptocurrency traders. 

Hedging On Cryptocurrency Derivatives

Chief Technology Officer Paolo Ardoino told The Block on June 25 that the cryptocurrency exchange was ready to ship a 100x leverage product for certain users. According to the post, the project has been under development for some time and is “now ready for prime time.” 

The product was referenced in last month’s whitepaper published by Bitfinex for its $1 billion private token sale of LEO, stating

“Qualified Bitfinex account holders will be able to trade a new hedging product through a derivatives wallet.”

The whitepaper originally claimed that the new hedging mechanism would be released by the end of June, a timetable that fits with Ardoino’s “ready for prime time” statement. 

Ardoino confirmed that only “verified” customers will be allowed access to the product, given the risks involved in such highly leveraged trades. 

The CTO also took to Twitter to quell user concerns over Bitfinex’s existing 3.3x margin trading. Ardoino explained 100x leverage will be “optional,” and that their current leveraged trading products will be unaffected by the release. 

Big Risk, Big Reward

Bitfinex is looking to compete with rival exchange BitMEX, who already offers 100x leverage through its bitcoin perpetual swap contract. However, Bitfinex claims its product is designed as a legitimate hedging tool for clients, rather than a gambling mechanism. 

Max Boonen, CEO of trading firm B2C2, believes the product will only appeal to retail hedgers, as large investors will shy away from the risks involved in 100x trading. 

According to Boonen, 

“There’s nothing wrong inherently about 100x. But as a commercial hedger you want lower leverage margin. The larger investor wouldn’t want to take the risk of 100X, typically. They don’t want to go balls to the wall.”

The cryptocurrency derivatives market has been heating up. Last week bitcoin-bull Mike Novogratz’s Galaxy Digital announced plans to offer cryptocurrency options contracts.

Binance has also reportedly been exploring futures trading. On June 24, Binance CEO Changpeng Zhao tweeted the exchange had executed its first margin liquidation for a BTC short.