Binance’s ICO Myth | SBF’s Trial Kicks Off

A blockchain approach to intellectual-property management could bring about collaboration with fans.

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Nina Bambysheva Senior Reporter, Forbes Money & Markets
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Steven Ehrlich Director, Forbes Digital Assets
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BINANCE’S ICO REVEALED TO BE A FLOP

The mythology surrounding the rise of the world’s largest crypto exchange is impressive. However, a Forbes investigation reveals that Binance’s 2017 initial coin offering was a flop, although one that the exchange took advantage of to amass a lucrative crypto war chest built on the unsold tokens, which later appreciated enormously.

Analysis of blockchain data suggests that less than half of the 120 million BNB tokens that were supposed to be sold were distributed to investors, and were then circulated among multiple, presumably Binance-controlled, cryptocurrency wallets. The dissemination of misleading information about the results of the ICO gave investors an overly optimistic perception of the BNB token's future success, creating the possibility for Binance to maintain an artificially high price.

According to Forbes’ estimates, Binance controlled nearly 117 million tokens on August 31, good for 76% of BNB’s total outstanding supply.

SAM BANKMAN-FRIED’S COURT BATTLE: WEEK 1

Prosecutors presented former associates who testified that FTX CEO Sam Bankman-Fried directed illegal transactions and was aware of the bad loans to affiliated hedge fund Alameda months before the crypto exchange’s failure.

Gary Wang, FTX’s cofounder and chief technology officer, acknowledged that he committed wire, securities and commodities fraud to withdraw $8 billion in FTX’s customer funds that were used to fund numerous venture investments, lavish real estate purchases and large political donations. He said Bankman-Fried directed the illegal moves.

Adam Yedidia, a friend of the CEO from the Massachusetts Institute of Technology (MIT) who worked at the crypto exchange, added that Bankman-Fried was aware of the multi-billion dollar shortfall at FTX from loans to Alameda months before both companies collapsed.

Bankman-Fried has pleaded not guilty on seven criminal counts in connection with the FTX failure. During opening statements, his lawyer painted him as a “nerd” who acted in good faith.

CURRENT PRICE OF TOP 5 COINS (7-Day % Change)

Coin

Price

Percent Change

Bitcoin (BTC)

$27,858

3.5%

Ether (ETH)

$1,638

1.7%

Tether (USDT)

$1

0%

Binance Coin (BNB)

$212

1.5%

XRP (XRP)

$0.52

1.9%

Sources: Forbes Digital Assets, CoinGecko. Prices as of 12:30 p.m. on October 6, 2023.

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CHAINALYSIS CUTS 15% OF STAFF

Blockchain intelligence specialist Chainalysis is laying off approximately 150 employees, or slightly more than 15% of its staff of 900, CEO Michael Gronager told employees in an email Monday.

This is the second round of cuts for the company, which was valued at $8.6 billion in 2022. Chainalysis is looking to expand on the investigative power of its core offerings with an eye on the future needs of governments after last year’s cryptocurrency decline limited commercial demand for its products that help identify illicit transactions and maintain regulatory compliance.

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FTX Employees Found Alameda’s Secret Backdoor Months Before Collapse

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