Fetch AI (FET) Binance Launchpad Shambles
Binance’s new launchpad allows ICOs to run on the Binance platform, this pilot project was an interesting one….
Binance, the most popular Cryptocurrency exchange in the world has recently launched it’s new product; ‘Binance Launchpad’. This platform allows new blockchain projects to incubate within Binance’s ecosystem.
One of the first projects to launch on Binance Launchpad is called Fetch AI; a project that brings together machine learning ("ML"), artificial intelligence ("AI") and multi-agent systems and decentralised ledger technology to create an economic internet — an environment where digital representatives of the economy's moving parts (such as data, hardware, services, people and infrastructure) can get useful work done through effective introductions and predictions.
The Fetch AI ICO was chosen by Binance to feature on the Launchpad and would, in turn, be run & listed on Binance.
1 Feb 2019: Binance announces research report on it’s latest Launchpad project; Fetch AI
23 Feb 2019: Users are enabled to sign the Token Purchase Agreement before the token sale which took place on 25th Feb 2019
24 Feb 2019: Binance sets token sale rate at 1 FET = 0.008584 BNB / 0.0867 USD prior to the sale
25 Feb 2019: Fetch AI (FET) token sale commences at 2019/02/25 2:00 PM (UTC) and reportedly sells out within seconds
25 Feb 2019: Many users experience issues with the token sale and lose money due to the decrease in price of BNB
25-27 Feb 2019: OTC (over the counter) sales of FET reach 3x the ICO price
27 Feb 2019: Binance completes distribution of FET to users accounts and announces that FET trading will begin at 2019/02/28 10:00 AM (UTC)
28 Feb 2019: Trading begins on time at roughly 4x (400%) the ICO price, many users experience issues when purchasing
So, what went wrong?
Firstly, seconds after the token sale, many users reported issues such as orders not going through and delays/lags in the system.
Due to the fact that Binance only allowed the token sale to be funded via BNB, many users purchased BNB to take part, yet because of the demand and system speed were not able to, and they consequently sold when they were not successful. This caused the price of BNB to ‘crash’ roughly 9% as the prospective FET purchasers sold their BNB, leaving many users angry and upset.
That’s not it…
After everyone accepted their defeat and a lesson learned, there was still one part of the puzzle missing…
Binance was to launch trading on FET only 3 days after the token sale.
Trading of FET pairs began at 2019/02/28 10:00 AM (UTC).
Many users experienced market buys which extremely exceeded the market price, meaning that within seconds, some lost $1000s.