Binance Launches New Token Program

Binance Launches New Token Program

BlockchainBinance

By Jakub Lazurek

17 Jun 2024 (25 days ago)

3 min read

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Binance Announces New ZK Token Distribution to Soothe Community Concerns

Binance has introduced a new ZKSync token distribution program to address ongoing community concerns. Running from June 17, 2024, at 02:00 UTC, to July 16, 2024, at 23:59 UTC, the initiative aims to resolve tensions from previous token distributions. Binance will distribute 10.5 million ZK tokens, potentially benefiting up to 52,500 users.

To be eligible, users must meet specific criteria. They need to have completed at least 50 transactions on the ZKSync Era network between February 2023 and March 2024. These transactions should span over seven different months within this period and exclude self-transfers. Also, eligible addresses should not have received tokens from the ZK Nation airdrop and must not be contract, CEX, or bridge addresses.

Participants must deposit a minimum of 0.02 Ethereum (ETH) from an approved ZKSync Era address to Binance to claim tokens. The deposit size does not affect the number of ZK tokens awarded. Tokens will be distributed on a first-come, first-served basis, with each successful Binance User ID (UID) receiving 200 ZK tokens.

Previous token distributions faced significant backlash due to perceived unfairness and lack of safeguards against Sybil's attacks. This led to the trending hashtag #ZKsyncScam on social media, reflecting the community’s dissatisfaction with the allocation methods and transparency of the airdrop process.

Major platforms like Element, the largest non-fungible token (NFT) marketplace on ZKSync Era, criticized their exclusion from airdrop benefits. Element, which contributed nearly 70% of the platform’s trading volume until June 12, voiced frustration on social media. Other significant contributors, such as ZKApe and DMail, also expressed their disappointment.

In response to the backlash, Binance’s new distribution strategy aims to rebuild trust and stability within the ecosystem. The initiative seeks to address previous concerns by implementing a fairer distribution process and restoring confidence in its platform.

Binance will also list the ZK token on June 17, 09:00 UTC. Users can trade various ZK pairs, including ZK/BTC, ZK/USDT, ZK/FDUSD, and ZK/TRY. This listing is expected to improve the liquidity and accessibility of ZK tokens in the cryptocurrency market.

Crypto traders like Axel Bitblaze have shared their strategies based on the fully diluted valuation (FDV) of the ZK token. Bitblaze mentioned, “If ZK launches at an FDV of over $15 billion, I’m selling everything to buy lower, below $10 billion later. If it launches below $7 billion, I’m holding. If it trades above $20 billion FDV, I’m shorting aggressively.” These strategies highlight the expected volatility and trading opportunities surrounding the ZK token launch.

Binance’s ZKSync token distribution program aims to address community concerns and build trust. By setting clear eligibility criteria and a transparent distribution process, Binance hopes to rectify past issues and create a fairer environment for users. The listing of ZK tokens on Binance further shows the platform’s commitment to supporting the ZKSync network's growth and accessibility.

As this distribution program progresses, it will be closely monitored by the cryptocurrency community. Its success could set a precedent for future token distributions and influence the broader digital asset landscape. Binance’s proactive approach in addressing community feedback and revising its strategy highlights its dedication to maintaining a fair and transparent platform for its users.

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