Cryptocurrency Exchange

Crypto Giant Binance Announces Sale of New Token, Releases Crucial Report Related to Augur Prediction Platform

cryptocurrency exchange

Binance, the crypto exchange has recently announced its fourth token for sale which will be coming through Binance Launchpad on 24th April.

The leading crypto exchange Binance mentions that it will be selling tokens of around 1.9 billion for Matic Network (MATIC), a blockchain scalability platform. Apparently, the exchange will be selling 19 percent of the overall supply.

Earlier, Binance Launchpad token sales were immediately sold out and had raised controversy for not allowing users to participate in the token sale process. However, during this time Binance will be implementing a lottery time methods to make the process fair. The users are allowed to claim a maximum 5 lottery tickets depending on how much a user holds in his account. If a user wants to buy a single ticket, he should hold 50 BNB in his portfolio.

Binance revealed about their next project Matic Network on Twitter,

On the other hand, Binance research has recently released a report which specifies the ‘design flaws’ that is impacting the prediction market platform of Augur.

Augur platform makes use of its token REP, which provides a decentralized marketplace where anyone can make a bet over the outcome of the future event. But Binance says that intentionally the cheaters can game the system by making invalid bets.

Let’s see how it functions:

Cheaters will intentionally create a bet that will finally be declared as invalid. Cheaters can do it by using the wrong date or by forming terms with integral flaws or differences.

When a market is considered and declared invalid, all the users who participated in the process will be receiving an equal portion of the entire amount in the pot, regardless of how much they have actually bet. This leads to the doors to be opened for shenanigans.

Binance mentions that by forecasting the future price of Ethereum, the system was gamed by the cheaters by creating a bet.  When the bet was declared as invalid, the scammers came out in front.

According to source “the amount invested in the seemingly correct outcome, ranges from $100 -1000, accounts for a large majority of the market, and based on market price of the this range for the duration of the market, investors buying this outcome, on average, placed nearly twice as much as into escrow as the manipulators,” further it added, “so receiving an equal price for all the outcomes could cause a loss of over 50 percent for the normal participants and 100 percent for manipulators.”

Augur mentions that it will be addressing the problems in the later version of the platform that is Version 2.0. Version 2.0 as of now is in its development phase.

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