CRYPTO MOVERS AND PRICES
CRYPTO STORY OF THE DAY
Following Our Comments From Yesterday, On Binance Changing Calculations Around Their 'Burn' Mechanism For BNB Without Any Significant Disclosures - In General, The Episode Is A Great Example On Differing Investor Rights Between Equity And IEOs/ICOs
Crypto Takeaway: The BNB announcement was in fact made months ago and only now have some well-known crypto publishers caught on.
Such a decision made by a public company's 'share buyback,' should mandate significant disclosures. ICOs are traded in live order books and are offered in a way that feels similar to equity. As a result, we've found that they have in some ways traded on the trust built-in equity markets without offering any shareholder rights.
IEO/ICO operators can, such as the case with Binance, change the rules of engagement at any point. While, like anything, there are opportunities offered by these products it is an entirely trust-based model with little legal recourse. Statutes related to fraud and illegal securities offerings may still be applicable, however, the offshore nature of many of these entities reduces the likelihood of recoveries.ent was made.
It was done so quietly that several in the crypto-focused media space issued corrections to recent publications because they were unaware of the change. In being the largest crypto trading venue, Binance has plenty to gain from the ecosystem growing and shady operations like this do not help confidence in the nascent space. The episode also highlights the limitations of ICO ownership versus equity, a topic we intend to revisit in the coming days.