Lottery System for Next Binance Launchpad ICO

After the success of previous ICOs on Binance launchpad and complaints of users, Binance comes with a new solution. Only a few numbers of users were able to get the Celer Network ICO. Majority of the users complaining that the ICOs are not fair and only a few can get them.

Binance Launchpad is starting a new lottery system to give users fair chances to participate in the ICOs. Users need to hold BNB (Binance Coin) to eligible for the lottery. The lottery draw will be done via a transparent, randomized system with a random selection of lottery tickets. Account verification (KYC) is necessary to participate in the ICO.

Lottery tickets are given to users according to the BNB holdings. BNB holders must hold the tokens for 20-days. Maximum 5 lottery tickets allocated per user. To eligible for lottery tickets, users must hold a minimum of 100 BNB coin in your Binance account.

How Lottery Tickets Distributed

lottery ticket distribution
Lottery Ticket Distribution

Each user must hold the same amount of BNB for 20 days. If the amount is dropped below the threshold as shown in the above picture they will put in the lower threshold.

For example, User A holds 301 BNB for 19 of the 20 days but their balance drops to 299 BNB on one day. They will now only be eligible to claim 2 lottery tickets.

For each project on launchpad, Binance will announce the maximum number of lottery tickets. The maximum allocation of funds is also announce differently for each project.

Before the ICO, 24-hours are given to users to decide how much tickets they are willing to use for the ICO. The number of winning tickets bond the users to must buy the amount equivalent to tokens. For example, if User B puts in an entry of 5 tickets and only 2 tickets end up winning, they are committed to pay for 2 ticket allocations (in BNB) for the tokens.

Risk to Hold BNB

There are always risks and the trade-off in every model. Binance launchpad is no exception.

  • The daily snapshot will bring volatility in the BNB market. Some users may sell BNB just after the snapshot. Some trader will view this as an opportunity and make good profits.
  • Holding BNB does not guarantee to buy ICO tokens.
  • The percent chance of tickets is not known until ICO. This is driven purely by market demand. Current indication suggests demand is high, and the chance of winning is low.
  • BNB may dump in the 20-day period and you may not get a chance in the ICO. This is like a two-edged sword.

Risk warning: Cryptocurrency investment is subject to high market risk. Please make your investments cautiously. Bitcoinik team will make best efforts to choose high-quality coins, but will not be responsible for your investment losses.

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