The coin of the month vote at the Binance crypto exchange is now open for round eight. Voting began at 4.00 am (UTC) on July 25 and will end at 0:00 (UTC) on July 30. This month the contenders are:
- Polymath (POLY)
- Libra Credit (LBA)
- LockTrip (LOC)
- Mithril (MITH)
- NKN (NKN)
Each month Binance selects a number of tokens for account holders to vote as the next token to be added to the exchange. As crypto exchanges have to tailor their systems to accommodate new tokens many of them charge the projects for a listing. Rumors suggest the costs can be as much as a million dollars for some digital asset exchanges.
As there are a plethora of crypto exchanges across the globe it can be a very expensive undertaking to have a token listed on all the major exchanges. Binance’s coin of the month vote allows smaller projects to have their token listed on the world’s biggest crypto exchanges for free.
How does the coin of the month vote work?
Each Binance account holder pays 0.1 BNB, currently about $1.30, for each coin they wish to vote for. Binance then applies a weighting to the vote based on the total holding of BNB tokens by the voter. The maximum weighting of 500 is given to any account holder with 500 or more BNB tokens.
Only account holders are able to participate in the coin of the month vote but with Tor and VPN it should be possible to game the system with multiple accounts if a project was so inclined to do so.
Binance does attempt to prevent vote rigging and their rules state “Binance reserves all rights to change the rules of this event without notification, including the revoking of results or disqualifying candidates who are confirmed to have engaged in vote manipulation.”
The exchange should remember that these projects have some of the brightest computer minds on the planet. Possible vote rigging isn’t restricted to team members of the projects though as some whale investors could also use it to their advantage. A listing on a major exchange like Binance can significantly pump the price of a token.
Oddly Binance appears to give an edge to anyone looking to game the system by providing a running balance of the votes received for each contender. It’s unclear why Binance thinks their coin of the month vote would be enhanced by furnishing the information before the vote ends.
Financial analyst, smartphone app designer, technical writer, and crypto enthusiast. Blockchain verified graduate of MOOC 9, DFIN-511: Introduction to Digital Currencies, run by the University of Nicosia.