Keep Building

Market Meditations | December 20, 2022

Last week Binance announced that it would delist several coins from the exchange, including MITH. The Mithril developers requested that Binance return a deposit of 200,000 BNB that was initially required for the coin to be listed. After Binance refused to return their deposit, they tweeted to CZ, hoping a public appeal would prompt him to return the funds.

  • Mithril claimed returning their initial deposit would allow them to continue operations and cited a long partnership with Binance. They even claimed to be the first token to list on the BNB chain.
  • They also felt that because Binance chose to end the relationship, they should be refunded their initial deposit.
  • CZ tweeted a response later on in the day, agreeing with his team’s initial decision of delisting and keeping the deposit while sharing a page from the Binance listing agreement with Mithril.
  • The contract included several clauses that allowed for delisting the coin, including a price threshold and the occurrence of a trigger event that would negatively affect Binance or Binance users. Such an event would give Binance the authority to keep the insurance deposit.
  • CZ pointed out that the team’s website is offline and they have not tweeted or updated their community in 2 years.

CZ also responded that the insurance deposit is a way to encourage builders to keep building and not abandon their community. Although initially, it seemed as though Binance was being unreasonable, time and time again they prove to be on the right side of history. Hopefully, that remains to be the case well into the future; even if it does give them the lion’s share of the market.