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Binance attempts to make Launchpad ‘fairer’ with new ‘lottery’ format

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In an apparent effort to entice further participation from investors, Binance, has made some fairly dramatic changes to their token sale launch platform Launchpad…

Announced today the exchange that Launchpad would be changing its token sale format from its highly divisive first come first serve format to a fairer lottery based format that will hopefully provide a fairer experience for investors.

Binance explains in a blog post that the number of “lottery” tickets available to claim depends on the amount of BNB you hold in the 20 days before the day of the lottery. Participants can claimer a maximum of 5 tickets per eligible account.

The amount of BNB held relates directly to the number of tickets available to claim, for example, a holder of 100 to 199 BNB held over a 20-day period will be eligible for 1 lottery ticket.

Every day at 0:00 AM (UTC) a snapshot of user funds will be taken to ensure that holder both have the required amount of BNB and are holding it for the 20-day period.

If the amount of BNB drops within the specified time period, they’ll be put into a lower threshold.

For every project, Binance will announce the maximum number of potential ticket winners, and the allocation of funds to each winning ticket prior to the lottery draw, e.g.:

“10,000 potential winning tickets, each representing 500 USD worth of tokens. This will change for each project on Launchpad.”

Once allocated with a specified amount of lottery tickets, users will be given a 24 hour time period in which to select how may lottery tickets they wish to enter, with the tickets representing a commitment to purchase the corresponding amount of tokens e.g.:

“if User B puts in an entry of 5 tickets and only 2 tickets end up winning, they are committed to paying for 2 ticket allocations (in BNB) for the tokens.”

Tickets will be assigned with a multi-digit number and selected at random, drawn via a “transparent, randomized system with a random selection of lottery tickets.”

Essentially this new format allows for fairer distribution, but seemingly only for holders BNB, with some benefiting significantly from holding a larger stake.

For this reason, everyone is particularly happy with this new format:

What do you think of this new proposed model? Let us know in the comments!

Source:chepicap

Binance

Binance Research: most large Bitcoin and Ethereum investors hold stablecoins, use cold wallets

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The research arm of Binance, the world’s largest crypto exchange by trading volume, has published a report that analyzes the results of a survey completed by institutional digital asset investors. According to the report, Binance surveyed over 100 institutional and VIP clients.

Survey results cannot be generalized due to the small sample size

The Binance team mentioned that the survey results should be interpreted with “extreme caution” and must not be generalized, because of the relatively small sample size of only 41 institutional and VIP clients.

As stated in Binance’s report, over 50 percent of the exchange’s VIP clients hold positions for at least a week. Meanwhile, a third of Binance’s institutional traders take part in high-frequency trading and various other market-making strategies.

Notably, Binance’s survey results indicate that clients with a bigger portfolio tend to trade across several different exchanges, whereas clients with less capital may trade on a single or a select few platforms.

High-frequency traders increasingly engage in cross-platform arbitrage strategies

High-frequency traders, who may hold positions for less than a day, tend to trade on several different exchanges in order to engage in cross-platform arbitrage strategies. This approach allows traders to take advantage of price differentials across multiple platforms, Binance’s report noted.

Binance’s management pointed out that around 90 percent of its clients use USD as the benchmark currency. This, as USD-backed stablecoins and USD-denominated trading platforms dominate the cryptoasset industry, Binance’s report confirmed.

Nearly all institutional clients use stablecoins

The Binance team revealed that almost all survey respondents said they use stablecoins for trading purposes or as a store-of-value (SoV). While USDT remains the dominant stablecoin, PAX and USDC are also used frequently to engage in trading or to hold value, the report mentioned.

Stablecoin usage (%) across institutional and VIP clients (source: Binance)
Stablecoin usage (%) across institutional and VIP clients (source: Binance)

Approximately 20 percent of Binance’s institutional clients that responded to the survey said they use the crypto-backed Dai stablecoin.

Majority of clients use OTC desks

As noted in Binance’s report, 87 percent of survey participants stated that they use over-the-counter (OTC) trading desks such as Huobi OTC, Galaxy Digital, and Binance Trading Desk.

According to Binance’s survey results, most clients have experience working in the financial sector, as only 7 percent of respondents said they had no prior exposure to financial markets before they began trading cryptoassets.

Most clients have been trading crypto for over a year

The majority of Binance’s institutional and VIP clients revealed they had been trading digital assets for at least a year. In fact, only 7 percent of Binance’s survey participants said they had been involved in crypto trading for less than a year.

Current experience in the cryptoasset industry (source: Binance)
Current experience in the cryptoasset industry (source: Binance)

Approximately 50 percent of Binance’s institutional clients had traded in traditional equity markets and around 25 percent said they engage in foreign currency trading.

Notably, 67.5 percent of survey respondents engage in leveraged trading through futures contracts or margin borrowing, Binance’s report noted.

Large investors keep funds mainly in cold storage

Clients with cryptoasset portfolios worth at least $25 million keep most of their holdings in cold storage wallets or use trusted third-party custodial solutions, according to Binance’s survey results.

The report concluded that a certain amount of user funds must be held on centralized exchanges in order to engage in efficient market-making and prop-trading strategies. However, this may change if decentralized exchanges such as Binance DEX begin to attract more users and experience greater trading volumes.

Storing methods for cryptoassets (source: Binance)
Storing methods for cryptoassets (source: Binance)

Interestingly, most institutional investors (two-thirds) do not keep funds in hot (online) wallets such as Binance’s Trust Wallet or the Coinbase Wallet, the report revealed.

DEXs not used frequently due to low liquidity

According to survey respondents, traders do not frequently trade on decentralized exchanges due to regulatory uncertainty. Binance’s institutional clients also mentioned that DEXs usually lack sufficient liquidity, and have a poor or non-intuitive user experience.

Non-custodial crypto platforms not yet popular among large traders

One-third of Binance’s clients that participated in the survey said they use custodial lending and borrowing services such as BlockFi or Nexo. As stated in Binance’s report, the majority of traders that use crypto lending and borrowing platforms have a long-term investment strategy.

Other survey results suggested that non-custodial digital asset borrowing/lending service providers are not yet widely used by institutional clients. This, as only 12 percent of those surveyed by Binance’s research division reported using these platforms.

Major risk factors: technology failures, hacks

Binance also asked its institutional and VIP clients to identify potential risks and growth factors for the digital asset industry. The majority of traders cited concerns about technology failures and security breaches. Survey respondents also noted that changes in regulations across different jurisdictions may pose a significant level of risk to the cryptoasset industry.

Other risk factors, according to survey respondents, included Tether’s legal problems and privacy issues related to cryptocurrency transactions.

ETFs could accelerate crypto ecosystem growth

Crypto industry growth drivers identified by Binance’s institutional traders include the potential introduction of Bitcoin ETFs, established brokers such as Fidelity offering crypto-related services, and the development of options contracts.

Binance’s survey respondents also believe that the launch of stablecoins by Facebook and J.P. Morgan may be seen as a positive development for the crypto space. Physically-settled crypto futures contracts offered by companies such as Bakkt and LedgerX may help accelerate the growth of the blockchain and digital asset sector, survey participants suggested.

Some respondents also said that Samsung’s crypto-related services such as a built-in smartphone walletcould potentially increase digital currency adoption.

Crypto infrastructure development highly undervalued

According to Binance’s institutional survey respondents, blockchain infrastructure development by projects such as ICONNebulas, and Zilliqa, is among the most undervalued segments in the crypto space. Store-of-value, payments, and settlements provided by BitcoinMonero, and XRP were also identified as undervalued by Binance’s clients.

Only 15 percent of respondents said the decentralized applications (dApps) ecosystem may be undervalued at present.

Many large investors don’t use Binance, results may not be accurate

The research arm of Binance, the world’s largest crypto exchange by trading volume, has published a report that analyzes the results of a survey completed by institutional digital asset investors. According to the report, Binance surveyed over 100 institutional and VIP clients.

Survey results cannot be generalized due to the small sample size

The Binance team mentioned that the survey results should be interpreted with “extreme caution” and must not be generalized, because of the relatively small sample size of only 41 institutional and VIP clients.

As stated in Binance’s report, over 50 percent of the exchange’s VIP clients hold positions for at least a week. Meanwhile, a third of Binance’s institutional traders take part in high-frequency trading and various other market-making strategies.

Notably, Binance’s survey results indicate that clients with a bigger portfolio tend to trade across several different exchanges, whereas clients with less capital may trade on a single or a select few platforms.

High-frequency traders increasingly engage in cross-platform arbitrage strategies

High-frequency traders, who may hold positions for less than a day, tend to trade on several different exchanges in order to engage in cross-platform arbitrage strategies. This approach allows traders to take advantage of price differentials across multiple platforms, Binance’s report noted.

Binance’s management pointed out that around 90 percent of its clients use USD as the benchmark currency. This, as USD-backed stablecoins and USD-denominated trading platforms dominate the cryptoasset industry, Binance’s report confirmed.

Nearly all institutional clients use stablecoins

The Binance team revealed that almost all survey respondents said they use stablecoins for trading purposes or as a store-of-value (SoV). While USDT remains the dominant stablecoin, PAX and USDC are also used frequently to engage in trading or to hold value, the report mentioned.

Stablecoin usage (%) across institutional and VIP clients (source: Binance)

Approximately 20 percent of Binance’s institutional clients that responded to the survey said they use the crypto-backed Dai stablecoin.

Majority of clients use OTC desks

As noted in Binance’s report, 87 percent of survey participants stated that they use over-the-counter (OTC) trading desks such as Huobi OTC, Galaxy Digital, and Binance Trading Desk.

According to Binance’s survey results, most clients have experience working in the financial sector, as only 7 percent of respondents said they had no prior exposure to financial markets before they began trading cryptoassets.

Most clients have been trading crypto for over a year

The majority of Binance’s institutional and VIP clients revealed they had been trading digital assets for at least a year. In fact, only 7 percent of Binance’s survey participants said they had been involved in crypto trading for less than a year.

Current experience in the cryptoasset industry (source: Binance)

Approximately 50 percent of Binance’s institutional clients had traded in traditional equity markets and around 25 percent said they engage in foreign currency trading.

Notably, 67.5 percent of survey respondents engage in leveraged trading through futures contracts or margin borrowing, Binance’s report noted.

Large investors keep funds mainly in cold storage

Clients with cryptoasset portfolios worth at least $25 million keep most of their holdings in cold storage wallets or use trusted third-party custodial solutions, according to Binance’s survey results.

The report concluded that a certain amount of user funds must be held on centralized exchanges in order to engage in efficient market-making and prop-trading strategies. However, this may change if decentralized exchanges such as Binance DEX begin to attract more users and experience greater trading volumes.

Interestingly, most institutional investors (two-thirds) do not keep funds in hot (online) wallets such as Binance’s Trust Wallet or the Coinbase Wallet, the report revealed.

DEXs not used frequently due to low liquidity

According to survey respondents, traders do not frequently trade on decentralized exchanges due to regulatory uncertainty. Binance’s institutional clients also mentioned that DEXs usually lack sufficient liquidity, and have a poor or non-intuitive user experience.

Non-custodial crypto platforms not yet popular among large traders

One-third of Binance’s clients that participated in the survey said they use custodial lending and borrowing services such as BlockFi or Nexo. As stated in Binance’s report, the majority of traders that use crypto lending and borrowing platforms have a long-term investment strategy.

Other survey results suggested that non-custodial digital asset borrowing/lending service providers are not yet widely used by institutional clients. This, as only 12 percent of those surveyed by Binance’s research division reported using these platforms.

Major risk factors: technology failures, hacks

Binance also asked its institutional and VIP clients to identify potential risks and growth factors for the digital asset industry. The majority of traders cited concerns about technology failures and security breaches. Survey respondents also noted that changes in regulations across different jurisdictions may pose a significant level of risk to the cryptoasset industry.

Other risk factors, according to survey respondents, included Tether’s legal problems and privacy issues related to cryptocurrency transactions.

ETFs could accelerate crypto ecosystem growth

Crypto industry growth drivers identified by Binance’s institutional traders include the potential introduction of Bitcoin ETFs, established brokers such as Fidelity offering crypto-related services, and the development of options contracts.

Binance’s survey respondents also believe that the launch of stablecoins by Facebook and J.P. Morgan may be seen as a positive development for the crypto space. Physically-settled crypto futures contracts offered by companies such as Bakkt and LedgerX may help accelerate the growth of the blockchain and digital asset sector, survey participants suggested.

Some respondents also said that Samsung’s crypto-related services such as a built-in smartphone walletcould potentially increase digital currency adoption.

Crypto infrastructure development highly undervalued

According to Binance’s institutional survey respondents, blockchain infrastructure development by projects such as ICONNebulas, and Zilliqa, is among the most undervalued segments in the crypto space. Store-of-value, payments, and settlements provided by BitcoinMonero, and XRP were also identified as undervalued by Binance’s clients.

Only 15 percent of respondents said the decentralized applications (dApps) ecosystem may be undervalued at present.

Many large investors don’t use Binance, results may not be accurate

When asked to predict Bitcoin dominance, which currently stands at around 60%, most survey participants said BTC’s crypto market share would remain roughly the same or go down slightly by December 2019.

While these survey results may be interesting, Binance’s management pointed out that there are still many large crypto industry participants that do not use the exchange’s services. This may suggest that the survey’s findings may not accurately represent the point of view and current trading patterns of large institutional players in the digital asset market.

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Binance sees almost $1 billion inflow for 30-day period

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Recent data from TokenAnalyst suggests that Binance’s dominance over the crypto market is growing. Over the past 30 days, it saw an inflow equivalent to over $900 million, with Bitstamp and Bittrex the only other exchanges not seeing a net outflow.

After starting to see some consistently major gains in April, with most people declaring the bull market to be definitively back, the last 30 days have been more volatile for Bitcoin (BTC). The top crypto has seen a few days of double-digit losses, and there have subsequently been major outflows from the top exchanges.

BitMEX has seen a net outflow of over $310 million for the 30-day period, with a significant proportion of this being in the last 24 hours, since it was reported that the Commodity Futures and Trading Commission (CFTC) was investigating the platform for not doing enough to prevent American traders from using VPNs to bypass its geo-blocking. BitMEX is not permitted to offer margin trading in the U.S.

BitFinex has seen the biggest sell-offs of the top exchanges, with a net outflow of over $740 million. This could well be linked to the company’s controversial management of its Tether (USDT) stablecoin, with the New York Attorney General’s office recently launching an investigation to determine if its parent company iFinex dipped into its USDT reservers in order to cover a $850 million loss. KuCoin, Kraken, and Poloniex also saw major net outflows.

Meanwhile, more and more traders are sending their BTC and other tokens and currencies on to the Binance exchange. The inflows could be linked in part to the platform’s launch of margin trading, just over a week ago. Bitstamp was just behind Binance, seeing an inflow just slightly less than the total outflow of Bitfinex. Bittrex has also seen slightly more inflow than outflow. 

Source:ambcrypto

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Binance’s Boost, BNB Ready for $43 After July 18 Signal

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  • Binance Coin (BNB) is up 7.1 percent
  • Free airdrop for XLM owners in Binance

Binance, amassing $775k after unknowingly staking XLM, will continue staking. Preparing to boost XLM accounts with free airdrops, BNB prices are up 7.1 percent in the last day.

Binance Coin Price Analysis

Fundamentals

Trading in some periphery exchanges can not only be a source of headache because of liquidity issues, but there is also the risk of being swept clean. In H1 2019 alone, losses resulting from cryptocurrency exchange hacking exceeded $210 million. The majority is from the QuadrigaCX private key disappearance after Cotten passing.

Meanwhile, Bitpoint is the latest, losing $32 million worth of different digital assets. Even so, that’s not to say Binance is impervious as they lost $40 million in BTC back in May 2019.

However, progress is positive as the heist was an expensive lesson for Changpeng Zhao and team. Apart from their ambitious expansion drive and offering irresistible features for their global clientele, it is turning out that Binance is generous.

The Malta-based exchange unknowingly staked some of their Stellar Lumens (XLM) holdings earning $775k or 9.5 million XLM. As a result, they will begin airdropping this lot to XLM customers.

“Binance is planning to share the XLM staking rewards we have been unknowingly receiving since last year. Specifically, Binance has decided to distribute the 9,500,000 XLM in staking rewards accrued to date, which is worth about $775,000, to all users who keep XLM balances starting July 20.”

Candlestick Arrangement

Binance coin BNB

Trading 7.1 percent higher in the last 24 hours, BNB has support. Already, there is confirmation of the double bar bull reversal pattern of July 16 and 17 following the high volume upthrust of July 18.

Although the conservative type of traders can wait for a full break and close above $43 before buying the dips, aggressive traders can act now. That means buying the retracement in smaller time frames with a stop-limit just below July 16 low of $25.

Good news is there will be more weight for this stance if prices break above the middle Bollinger Band (BB) by the end of the day.

In such a case, the first target will be June 2019 highs of $43. Depending on momentum, the next aim is $70. On the reverse side, and as per previous assertions, any degradation below $25 could see BNB drop to $20 in a retest.

Technical Indicators

Because of the high trading volumes of July 18, there is a likelihood that BNB will float higher. For buy trend continuation, the break out bar signaling buyers ought to be with high participation exceeding 6 million of July 18. Conversely, bears will be back if prices fall below $25 with equally high trading volumes.

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