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

CME Looks to Double Bitcoin Futures Limit, but Is This Wise?

The Chicago Mercantile Exchange (CME) has a new request for its regulator, as it looks to double open position limits on bitcoin futures contracts in the face of significant interest.

Nasdaq reports that the CME has already petitioned its regulatory body, the Commodity Futures Trading Commission (CTFC), asking for an increase from 1000 contracts per spot month to 2000 per investor. Each contract represents five BTC, so essentially, at its peak,  a single investor's total position may edge towards a monumental 10,000 BTC.

This is in direct response to the contract's recent growth which is currently depicting record levels of activity, citing $370 million being traded per day. A spokesperson for the CME noted that the idea to increase limits was proposed on the continued maturity of the market:

Based on the significant growth and acceptance of our financially-settled CME Bitcoin futures markets, as well as our analysis of the underlying bitcoin market.

However, as Nasdaq writes the increase in the upper limit of positions is somewhat superfluous. As of July, the number of open interest contracts reached an all-time high of just 6100; given this, it seems the CME may be future-proofing.

Open to Manipulation?

However, concerns remain about the limit increase, as without them, the potential for manipulation rises; often to the detriment to the underlying asset. Although, as per the CTFC website, the threat of manipulation from bitcoin futures contracts is "low":

In general, position limits are not needed for markets where the threat of market manipulation is non-existent or very low.

Instead, Nasdaq posited that this might point to a lessening on the CTFC's strict rule of bitcoin; as well as a maturing of the market in general.

Nevertheless, some believe the CME's bitcoin futures contracts do pose a significant threat to the price of BTC; with some suggesting that blatant manipulation continues unchecked within the market.

As reported, there seems to be a correlation between the expiry dates of CME bitcoin futures contracts and a lull in the price point of BTC. In several instances, a significant drop in bitcoin's price has coincided with a closure from the CME. The most recent example of this occurred on Labor Day, September 2, when bitcoin rose an extraordinary 8% shortly after the CME shut.

Crypto analyst, Alex Kruger, highlighted this, noting the large gaps which formed on the CME chart, from the price discrepancy before and after closing.

This has become a pretty accepted practice within the market. Kruger has even gone to the lengths of compiling statistics each time this phenomenon transpired:

On these occasions, bitcoin cited an average 4.6% price discrepancy following the close of the CME.

Whether this is a coincidence or the market is indeed being actively manipulated is as yet unclear. Either way, with the increase of these limits it might be only a matter of time until we know for sure.

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