To address issues with high demand, Binance has announced major changes for token sales on its Binance Launchpad.
According to an official blog post published on March 24, the exchange’s token offering platform has moved from first come, first served basis to “a new lottery format” for allocations of digital tokens.
The announcement detailed that each participant in the token offering will be allowed to claim up to 5 lottery tickets by holding Binance Coins (BNB) for a period of more than 20 days prior to the lottery draw date. The platform has set the minimum limit for holding one lottery ticket at 100 BNB.
Binance has brought these changes amid high demand in the token sales conducted on its token offering platform.
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The crypto exchange admitted that the move to introduce a lottery system might cause some fluctuations in BNB trading before and after the snapshot time every day. However, it believes that the impact on the market would be minimal.
“The daily snapshot may create some fluctuations in BNB trading before and after the snapshot time,” Binance noted. “Our experience indicates the side effects should be minimal. Other market participants may view this as an opportunity, and countertrade to even out the fluctuations.”
Initial Exchange Offering – the Next Big Thing for Raising Funds
Though launched in 2017, Binance Launchpad came into limelight with the offering of BitTorrent Token (BTT), in last February. All the tokens of the Tron-owned company were sold out in a mere 15 minutes despite some technical glitches on Launchpad. The offering sold $7.2 million worth of BTT.
That was followed another two successful coin offerings – Fetch.AI and Celer. Both projects raised $6 million and $4 million respectively in minutes, just like the offering of BTT.
Binance, however, is not the only player in this initiative of offering tokens through an exchange as Bittrex and Huobi also jumped into the sector with the launch of Bittrex International and Huobi Prime respectively.