Forbes Compares Binance to FTX Amidst an ‘Existential Crisis’: A Closer Look at the Cryptocurrency Landscape

Forbes Compares Binance to FTX Amidst an ‘Existential Crisis’: A Closer Look at the Cryptocurrency Landscape

Forbes Investigation Reveals Alleged BNB Supply Control

Forbes, a reputable source, has conducted an in-depth analysis on Binance, the world’s largest cryptocurrency exchange, raising serious concerns about the control of its native token, BNB.

Javier Paz’s Six-Month Investigation

In a recent tweet, Javier Paz, Forbes’ Director of Data and Analytics, revealed the results of his six-month-long investigation into Binance’s operations. The investigation, titled “How Binance Turned Its Failed Token ICO Into A Billion Dollar Windfall,” highlighted some alarming findings.

Key Findings of the Investigation

According to Paz’s report, Binance allegedly controls a staggering 76% of the total BNB coins in circulation. This revelation raises questions about the exchange’s transparency and fairness in the cryptocurrency market.

Discrepancies in Binance’s 2017 ICO

The investigation further pointed out discrepancies in Binance’s 2017 initial coin offering (ICO). Contrary to the exchange’s claims, Paz’s analysis of Binance’s crypto wallets suggested that only 10.78 million BNB tokens were transferred to ICO participants, not the 100 million BNB as advertised. Additionally, Paz argued that Binance likely raised less than $5 million in its ICO, a stark contrast to the $15 million claimed by Binance’s CEO, Changpeng Zhao (CZ).

No Response from Binance

Despite these serious allegations, neither Binance nor its CEO has responded to Forbes’ claims at the time of this report. This lack of response raises concerns within the cryptocurrency community about the transparency and credibility of one of the leading exchanges in the industry.

Forbes’ Previous Criticisms of Binance

This recent article from Forbes is not the first instance of the publication criticizing Binance. An earlier article titled “Binance’s Asset Shuffling Eerily Similar To Maneuvers By FTX” drew parallels between Binance and FTX, suggesting that Binance is facing an “existential crisis,” a claim that CZ dismissed as intentional fear, uncertainty, and doubt (FUD).