A decentralized social network project called Mithril (MITH) was recently delisted from Binance and in return, the crypto project asked for the 200,000 Binance Coin (BNB) it had to deposit as insurance for listing on the exchange.
Binance CEO, Changpeng Zhao responded to MITH’s demand on Twitter with a screenshot of their contract that suggests if the listed token price falls below a certain threshold, the exchange has the right to deduct the insurance fund partially or fully as an additional fee.
I reviewed this after seeing your post. Here is the contract clause for your (and community) reference. We usually observe confidentiality, until you broke it. The Insurance Deposit is there to encourage builders to continue to build. 1/2 pic.twitter.com/OX34TOmD1g
— CZ ? Binance (@cz_binance) December 16, 2022
With this situation, it appears Binance creates artificial demand for $BNB by requiring Listing deposit of BNB instead of USD. Removes sell pressure by never giving back the deposit. Look at the amount of shitcoins on Binance. Why do they all need to buy BNB to get listed on Binance?
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The trigger price of $MITH is $0.15. The maximum level reached when the trade was opened is $35 and the price is now $0.42. Is it enough just for the $HashFlow team to tweet? don’t Binance see the huge manipulation of the price? What more needs to happen? Is it necessary to drop 200x?
Binance, tolerate so much manipulations on its Exchange, Hashflow is constantly adding and selling supplies and Binance tolerates it. The price has fallen 87x for 39 days and it is still falling. It is no different from Luna.
Now we have the proof of reserves so know how Binance will survive the bear market. Most tokens will get a 80-90% correction and Binance gets the deposit fees. Mystery solved, Binance is safe and solvent but not a good transparent look on CZ and Binance.
Thus, Part A will be protected from any material adverse effect, and the users (holders) will be screwed up, without any prior warning.
Blockchain project Mithril said it deposited 200,000 BNB to Binance in 2018 — about $1 million at the time — as part of the exchange’s listing process. But the project fell out of favor and was delisted yesterday which prompted Mithril’s Team to demand for a refund of its listing deposit.
$0.13 and $0.065 are quite high levels given opening price. Is this how Binance engineers shitcoin listing pumps?
One would expect trigger levels to be quite low for a delisting requirement, instead they seem to be quite high. Imagine if getting a publicly listed equity/stock on a stock exchange was pay to win without any regulatory oversight. This is what crypto casinos are— Now you know.
Dibby, a Blockchain attorney— posted on Twitter, If the price of the Token on any exchange falls below 50% of $0.13 on a continuous basis, or in connection with the Token or the Project, Party A believes that it will have or will have a material adverse effect on Party A and/or its users; If other events exist.
PSA: don’t agree to clauses with financial outcomes that use wording like “any event Party A BELIEVES will have an impact”.
Subjective wording like this undermines the entire clause.
If you are in a corner, at least insist on objective standards like “reasonably believes”. https://t.co/EfnSkiGa2d
— dibby (@dibbydart) December 16, 2022