Crypto Exchange Binance Reveals New Token Sale, Releases Critical Report on Augur Prediction Platform
Binance just announced its fourth token sale coming to Binance Launchpad on April 24th.
The leading crypto exchange says it will sell 1.9 billion tokens for the blockchain scalability platform Matic Network (MATIC), which is 19% of the total supply.
The previous Binance Launchpad token sales have sold out instantly and created controversy for shutting out many users who tried to participate. This time around, Binance is implementing a lottery to try to make the process fair. Users will be able to claim up to a maximum of five lottery tickets based on how much Binance Coin (BNB) they hold in their portfolio. The minimum amount to obtain one ticket is 50 BNB.
— Binance (@binance) April 1, 2019
Meanwhile, Binance Research has released a report that details a “design flaw” affecting the Augur prediction market platform.
Augur, using its token REP, offers a decentralized marketplace where anyone can create a bet on the outcome of a future event. But according to Binance, cheaters can game the system by creating invalid bets on purpose.
Here’s how it works: Cheaters intentionally create a bet that will eventually be declared invalid. This can be done by using an incorrect date or by creating terms with inherent flaws and contradictions.
When a market is declared invalid, all participants receive an equal portion of the total amount in the pot – no matter how much they actually bet. This opens the door for shenanigans.
Binance says cheaters gamed the system by creating a bet centered on predicting the future price of Ethereum. When the bet was declared invalid, the scammers came out ahead.
“According to Predictions.global, the amount invested in the seemingly correct outcome, the $100-1000 range, accounts for a large majority of the market, and based on the market price of this range for the duration of the market, investors buying this outcome, on average, placed nearly twice as much into escrow as the manipulators, so receiving an equal price for all outcomes could cause a loss of over 50% for normal participants, and 100%+ returns for manipulators.”
Augur says it will address the issue in version 2.0 of the platform, which is currently in development.