The Binance cryptocurrency exchange leader in terms of trading made changes to the white paper Binance Coin (BNB) in the section on the periodic burning of coins. So, from the document the mention was lost that the site allocates 20% of quarterly profit for the purchase of BNB and subsequent destruction. Reported by The Block .
on the left – the initial version; right – corrected; all changes by reference
Changphen Zhao said that in fact Binance does not buy tokens on the market, but simply burns BNB [probably from reserves]. In his opinion, the mention of the term “profit” in this part of the document brought the BNB closer to the definition of a security, which the exchange seeks to avoid.
At the same time, the press secretary of Binance stressed that the exchange would continue to burn tokens in an amount equivalent to 20% of the company's quarterly profits.
Nevertheless, according to The Block, a legal expert, it is not enough just to remove any formulations from white paper or replace them so that the regulatory analysis shows that the token is not a security.
Earlier, BlockchainJournal dealt in detail with Binance Coin's case, the nature of this token and the foundation on which Changpeng's empire was built. In particular, it was noted that the mechanism for burning tokens is not transparent, and the exchange can at any time abandon this practice.
@cz_binance @binance #Binance some questions inside https://t.co/BVhT2VRU0y
– Nick Schteringard (@schteringard) March 25, 2019
Moreover, there is still a question of business ethics on the part of Binance, which artificially stirs up the demand for its coin due to, for example, the stacking model for participating in IEO on Launchpad.
Recall, on April 18, the launch of the main Binance Chain network took place , and the BNB migration to the BEP2 standard is scheduled for April 23.
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