CZ Resolves Delisted Project's Accusations, BNB Insurance For Binance Listing
Luisa Crawford Dec 15, 2022 23:19
Binance delisted Mithril, a decentralized social network. The crypto project requested its 200,000 BNB (BNB) insurance deposit. Binance CEO Changpeng Zhao reacted to MITH's request on Twitter with an image of their contract, which states that the exchange may deduct the insurance money partly or totally as an extra charge if the listed token price falls below a particular level.
Many people were unconcerned about the delisting because of its lack of activity; however, some people questioned the emphasis on price for the delisting because it may encourage projects to artificially inflate the price. This is because the emphasis on price for the delisting may encourage projects to artificially inflate the price.
Binance recently removed a decentralized social network project called as Mithril (MITH) off its listing of available cryptocurrencies. In response, the cryptocurrency project made an effort to get back the 200,000 BNB (BNB) that it had been required to pay as an insurance premium before to being listed on the market.
The Chief Executive Officer of Binance, Changpeng Zhao, responded to the demand made by MITH on Twitter by posting a screenshot of their contract. The screenshot gave the impression that if the listed token price drops below a particular barrier, the exchange has the ability to deduct a portion or all of the insurance fund as an additional cost. This could be the case.
CZ stated that the token price for the aforementioned project has fallen below the trigger level on many occasions, and after investigating the project, it was discovered that it hadn't updated the community in almost two years. CZ also stated that the project hadn't communicated with the community in almost two years.
CZ said that the group had arrived at the correct judgment and that they did so while remaining totally within their legal jurisdiction to do so.
On-chain analyst ZachXBT has levied claims of theft of 22,000 ether against the developer of the project, who is known to have a checkered history in the cryptocurrency space.
The interaction that took place between the Chief Executive Officer of Binance and the head of a project that was delisted has attracted the attention of the cryptocurrency community.
The MITH project has not been active since early 2021, as many members of the cryptocurrency community were eager to point out, and the listing insurance of 200,000 BNB was only worth at $2 million at the time of deposit, in contrast to its current market value of $53 million.
During the course of the past week, the cryptocurrency exchange known as Binance has received a great deal of coverage in the media, although not always for wholly favorable reasons. As a consequence of the large number of financial industry professionals who expressed their concerns with the disclosed audit, the proof-of-reserve audit has been a prevalent topic of discussion.
