Binance CEO, Changpeng Zhao has addressed the issue of the speculated vote manipulation by the Redditors. On Twitter, Zhao has expressed his concern stating manipulation of votes for getting “Community coin of the month” would be dealt with stringent measures. Binance, the popular multilingual cryptocurrency exchange on 24th July, 2018 has opened the voting round for the event by nominating five projects.
The Reddit Issue
However, on 26th July, the users of Reddit started a speculating that more than 50% of the community votes have been subjected to manipulation. In this case, only 10 accounts have been used for the voting purpose. In the contest, the project which receives the maximum number of votes would be listed on the Binance trading exchange. This listing on Binance exchange would last for a considerable span of time.
On 30th July at 0:00 am [UTC] as the voting period ends, the crypto exchange would begin tallying the votes. Nomination for the contest of Community coin of the month are Locktrip [LOC], NKN [NKN], Libra Credit [LBA], Polymath [POLY] and Mithril [MITH]. On Twitter, the exchange has posted,“Voting Opens for #Binance Community Coin of the Month – Round 8https://support.binance.com/hc/en-us/articles/360008553812 …”
The voting rounds have not yet managed to receive adequate number of accumulated votes. The determination of the multiplier of the votes of users hinges on the number of Binance Coin [BNB] possessed by the voters. This implies that with an increased number of Binance Coin [BNB] in user account, greater is the possibility to get enlisted.
As per the notification of this China based crypto exchange, an amount of 0.1 Binance Coin [BNB] per candidate needs to be paid by the users. However, the Reddit users suspect and speculate about the manipulation of the voting for this contest.
According to a Reddit post on a subreddit called ‘Cryptocurrency, Arbobmehmood posted,“Apparently this month’s community vote is being manipulated at scale with about 50% of the votes coming from just 10 accounts. Perpetrators include Libra Credits (LBA) and Mithril (MITH). The largest account discovered has funded 193 exchange accounts at about 400 bnb each for a total of 65,420 bnb or 25% of the total votes so far.”
The Redditor after linking to Medium pages based on Mithril and Libra vote manipulation, a Medium user Cryptodaku, stated,“We see that this wallet [0x2a74f3A43A0b13eFdc1413C665E68aF7d09b0811] started distributing almost 20k BNB that is equal to 20k votes. Transactions of ~520 BNB were distributed into separate Binance accounts. Another ~7k BNB were sent to a wallet address: 0x78688462e1c467081Cb1e4A785Ec3ac76e4f2A7c . Where they were distributed to different Binance wallets once again.”
Furthermore, Cryptodaku has commented,“We find a wallet [0x20cb24c78bdb1bf17e6a1d4e2fd1cc80aa1a5c5b] that is used to distribute BNB tokens among different Binance accounts. Up to this point 364 distributions have been made. Up to this time I am writing this total of 83797.2 BNB were distributed to different wallets with amounts up to 500. Meaning Mithril has 83797 votes from one whale.”
Till now, only NKN among all the nominees had been barred from speculations of the Redditors. Nevertheless, NKN followed by Mithril and Libra Credit hold the leading position on the voting chart.