Since Binance’s inception in the late 2017’s, it’s built a reputation of good moral ethics as well as a system that is relatively secure — even trapping hackers right in their tracks, almost like a scene out of a movie. Naturally, the exchange’s native coin–BNB–which offers discounted trading fees as well as coin voting rights has exploded in value. Currently Binance is one of the highest volume exchange in the world.
Bruce, creator and owner of @EtherDROPS (a Telegram-based ETH notification system), unveiled some concerning data regarding Binance’s community voting system. Through the app that he has created (which is available for free) he collects tremendous amounts of data on the Ethereum network which can be used to find anomalies, and interesting trends.
The data revealed that this month’s community voting is heavily being manipulated by just 10 whales (individuals or entities that hold a large amount of wealth — in this case, BNB coins).
50% of the “coin of the month” votes came from 10 Binance accounts. One account has funded 193 exchange accounts at about 400 BNB each for a total of 65,420 BNB
So far it appears that Libra Credit (LBA) and Mithril (MITH) are manipulating the community voting system the most, funding smaller accounts with BNB to put more votes in for their project. We all understand the desire and ‘prestige’ to be listed on Binance, but community manipulation is not something that should be taken lightly.
Although I’m sure this type of manipulation was not foreseen or anticipated by Binance, it is clear that at its current stage this is not a “community” vote. Changpeng Zhao, CEO of Binance and commonly known as CZ, has been very clever in dealing with hackers and scammers in the past — it’ll be interesting to see what changes he implement (if at all).