Here’s How Much The Binance ICO Really Brought In…

October 6, 2023 9:12 am Comments

A new report from leading financial publication Forbes has revealed the true numbers for the Binance ICO.

ProCoin News previously reported that the world’s largest centralized exchange by volume is facing increased regulatory scrutiny worldwide—especially in the U.S., where Binance’s subsidiary is facing a lawsuit from the Securities and Exchange Commission.

To make matters worse for the company, a recent analysis from Forbes indicates that Binance.US only brought in a paltry sum of $5 million for their ICO, compared to the reported $15 million.

To put this in perspective, most ICOs/IPOs for a company of that size and significance are typically within the range of $100 million- billions of dollars.

Forbes explained: “A Forbes Crypto analysis, led by Javier Paz, of Binance’s BNB wallets shows that while 100m BNB tokens were earmarked for Binance’s ICO, investors got no more than 10.8 million of the assets. By contrast, angels received 40.1m, double their expected amount.”

Forbes broke the story:

Few knew about BNB’s initial misfire, in part because crypto ICOs are unregulated, and there are no SEC filings with disclosures of any kind.

But there appears to have been a silver lining to Binance’s ICO troubles. The exchange’s founders, including Zhao, were left with 145 million of its minted BNB tokens by September 2018, instead of the 80 million initially planned.

At the time of its ICO, the 65 million unsold tokens would have been worth less than $10 million, today they are worth about $14 billion.

The Analyst who discovered the mismatch, Javier Paz, brought the receipts: “Today’s Forbes Crypto report following my 6-mo investigation points to Binance now owning an estimated 76% of all BNB. It all started with a failed 2017 ICO.”

Self proclaimed crypto skeptic Chase Coleman had this to say: “BNB [equals] equity in Binance. If it were a stock, you’d be an idiot to own equity in a company that had every key executive other than CZ resign. Any company that controls all of their shares is a red flag. BNB’s ICO was a colossal failure.”

Forkast had more details:

In September, Binance said it would change its euro banking partner two weeks after Binance France was reportedly investigated for money laundering. In Australia, the country’s securities watchdog canceled the local branch’s derivatives license in April, a day after receiving the cancelation request from the exchange.

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