Biinance and SushiSwap at the center of scandal
We haven’t thought about the popular digital exchange Binance for a long time. Mainly because the site did not participate in major events, did not declare itself in any way and, in principle, conducted measured, calm work. But today the reason to remember about Binance really appeared. The platform again fell into the center of criticism and conflict. It’s all to blame for the beginning of support for a coin like SushiSwap. The asset went to Binance, which doomed the platform to participate in a new scandal. Next, we will look at the details of the audience’s dissatisfaction, evaluate the event and talk about the arguments of the parties. So let’s get started.
If the scandal is related to cryptocurrency, then to understand it, you must first discuss the cryptocurrency. So, SushiSwap is a fairly young, but already well-known distributed platform built on the Blockchain. The main feature of the platform is the ability to predict changes in the exchange rate of a coin. Roughly speaking, the developers have implemented functionality that allows them to predict the flow of the value of the internal cryptocurrency. For the correct forecast, the user receives a reward, a whole thousand new coins. The development is carried out by representatives of the well-known and popular cryptocurrency exchange Uniswap. Together with experts from the MasterChief project team, the specialists were able to create a really interesting project.
There is no doubt about the reliability of the company, because the internal token is listed on Binance. However, because of this, problems began. Moreover, both the creators of the cryptocurrency and the representatives of the exchange. The fact is that almost immediately after adding SushiSwap to the platform, the creator of the coin sold all his savings. There was an expected collapse in value, the price tag decreased by 50%. The creator of the cryptocurrency was bombarded with accusations of deliberately lowering the price, deceiving the audience and other shenanigans.
Under pressure from the audience, the unknown creator of the project, working under the nickname “Chef Nomi”, handed over the management of the company to the head of the FTX currency exchange. Now completely different people are managing MasterChief, and many rumors have gathered around the project. Mostly, they are all built on insulting the head of Binance. But let’s consider whether the company is to blame for this situation.
Is Binance to blame for the price drop?
In fact, most likely yes. The fact is that the exchange specialists still do not have information about the identity of the creator of MasterChief. And this, recall, contradicts one of the platform rules. The listing requires the project to disclose the identity of its own director. This will help the exchange contact an authorized person in the event of an emergency. There were no such checks here. It is also not entirely clear why Binance allowed such a price dumping and allowed to sell a huge amount of currency immediately after the listing began.
Serious analysts, including Larry Cermak, reproach the site for not caring about the safety of its users’ funds. Indeed, imagine how it looks from the outside. A new asset is released on a well-known exchange, which is trusted and actively used. Users invest money in it, and it, almost immediately after the start of work, drops by half.