A decentralized social network project called Mithril (MITH) was recently removed from Binance, and in exchange, the crypto project requested the 200,000 Binance Coin (BNB) it had to deposit as insurance to be listed on the exchange.

Binance CEO Changpeng Zhao, aka CZ, responded to the MITH lawsuit on Twitter with a screenshot of its contract suggesting that if the price of the listed token falls below a certain threshold, the exchange is entitled to deduct the insurance fund partially or totally as an additional fee.

CZ said that the token price of said project fell below the activation threshold several times, and after analyzing the project, he has not updated the community for almost 2 years. CZ stated that “the team made the right decision and acted fully within our right to do so.”

The MITH project was founded by Jeff Huang, a famous Taiwanese musician and a popular non-fungible token (NFT) investor. The founder of the project has a tainted crypto record with on-chain analyst ZachXBT accusing him of embezzling 22,000 ETH.

Related: CryptoQuant Checks Binance Reserves, Does Not Report ‘FTX-Like’ Behavior

The exchange between the CEO of Binance and a delisted project caught the attention of the crypto community. While many in the crypto community were quick to point out that the MITH project has not been around since early 2021 and the 200K BNB listing insurance was only valued at $2 million at the time of deposit against its current market value of $53 million.

Many others questioned whether it was fair for the exchange to request security insurance on Binance’s native token in order to be listed. another user disputed whether Binance’s approach to delisting based on token price is the right approach, given that “if the price carries such a large weight, it would push projects to pump/dump or artificially inflate prices every time falls below the trigger price.

Binance did not respond to Cointelegraph’s question at press time.

Binance has been in the headlines over the past week, but not for all the right reasons. His reserve test audit became a hot topic of discussion as many financial experts raised concerns about the published audit. Cryptoanalytics firm CryptoQuant analyzed its on-chain booking data and claimed there was no FTX-like behavior.





This post BNB safe for Binance listing? CZ Addresses Delisted Project Claims

was published first on https://cointelegraph.com/news/bnb-insurance-binance-listing-cz-addresses-delisted-project-s-claims

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