Forbes Report: Binance ICO Distributed Only 10% of Promised BNB Tokens, Raising Concerns of $15.7 Billion in Control

By Tsunami 10/6/23 1:41 AM

In a startling investigative report published on October 5, Forbes unveiled alleged discrepancies in Binance’s initial coin offering (ICO) for Binance Coin (BNB) back in 2017. The report, which delves into the cryptocurrency exchange’s early history, suggests that Binance may have significantly overstated the success of its ICO and raised questions about the allocation of tokens.

The report, authored by Forbes, highlights key findings regarding Binance’s ICO and its subsequent claims. According to the report, Binance’s founder and CEO, Changpeng Zhao, began developing the concept for BNB in June 2017, circulating a white paper outlining the asset’s purpose and potential.

Binance completed the BNB ICO in July 2017, with Zhao publicly declaring the offering a resounding success. At the time, he stated that the ICO had generated a total of $15 million in funds and that the price of BNB tokens had averaged $0.15 each.

However, the investigative report suggests that the actual numbers may not align with Binance’s declarations. It points out that ICO investors reportedly received only 10.78 million BNB tokens, a stark contrast to the 100 million tokens they were believed to have been allocated. Additionally, it is suggested that the ICO may have raised nearly $5 million, significantly less than the claimed $15 million.

Further scrutiny reveals that angel investors, who were initially slated to receive 20 million BNB tokens, allegedly received a doubled token distribution, totaling 40 million BNB tokens. This inconsistency raises further questions about Binance’s ICO practices.

Despite these revelations, Binance’s BNB has grown to become one of the largest cryptocurrencies in the world. With a market capitalization of $33 billion, it currently holds the position of the fourth-largest cryptocurrency by market value.

This investigative report by Forbes has sparked significant interest in the cryptocurrency community and among financial regulators. It raises concerns not only about Binance’s ICO but also about the broader issue of transparency and accuracy in the cryptocurrency industry. Questions about token allocations, fundraising amounts, and the veracity of statements made by cryptocurrency projects are crucial considerations for investors, regulators, and enthusiasts alike.

Binance has yet to respond to the allegations made in the report, but the findings underscore the need for increased transparency and accountability in the cryptocurrency space. As the industry continues to evolve, ensuring that investors have access to accurate information and that projects adhere to their stated commitments will be essential for its long-term growth and stability.

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