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Binance delays issuing Lazio coin

By Robert Davis

21:44, 22 October 2021

Binance logo on a phone
Binance logo - Photo: Shutterstock

Cryptocurrency exchange Binance delayed the distribution of Lazio tokens on its platform on Friday, saying the delay was caused by record participation.

“The Lazio Launchpad broke the Launchpad record with the participation of 225,583 participants, which marked a 20-times return for all participants (data as of the announcement time),” Binance said in a statement. “However, due to the large number of participants, it took the Binance team more time than anticipated to distribute the Lazio tokens.”

Yesterday, Lazio reached an all-time high of $26.75 per unit. By press time on Friday, the asset had dropped more than 33% in value to $17.05 per unit.

Optimise the process

Binance told its customers that its team will “further optimise the process, including postponing the listing time and adding manual inspections” to avoid the same mistake happening in the future.

It also said all coins that were purchased have been issued and “the remaining (Binance coins) committed by participants have been returned to participants’ spot wallets.”

Delayed issuance

This is not the first time a crypto exchange has delayed the issuance of coins to its users. Back in 2018, the developers of the Nebulas project delayed issuing their coins for up to seven years while they continue to build the platform.

In 2019, Heredia Hashgraph asked its investors to wait to receive their tokens as the platform worked to stabilise the price of its namesake asset.

This event also isn’t the first time Binance has had technical issues with its platform. On Thursday, Bitcoin had a flash crash on Binance's platform that sent the asset tumbling 87% from $65,000 to $8,200 before rebounding within a matter of seconds. The event also had a ripple effect on several other platforms.

SOL/USD

104.54 Price
-5.030% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 22:00 (UTC)
Spread 2.2652

XRP/USD

0.55 Price
-3.460% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 22:00 (UTC)
Spread 0.01168

ETH/USD

2,924.57 Price
-2.190% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 6.00

BTC/USD

51,324.35 Price
-1.450% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 106.00

Binance blamed the crash on a bug in an institutional customer’s system which has since been resolved.

Read more: Binance.US blames Bitcoin flash crash on investor bug

The difference between stocks and CFDs:

The main difference between CFD trading and stock trading is that you don’t own the underlying stock when you trade on an individual stock CFD.

With CFDs, you never actually buy or sell the underlying asset that you’ve chosen to trade. You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional stock trading you enter a contract to exchange the legal ownership of the individual shares for money, and you own this equity.

CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional stock trading, you buy the shares for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks.

CFDs attract overnight costs to hold the trades, (unless you use 1-1 leverage) which makes them more suited to short-term trading opportunities. Stocks are more normally bought and held for longer. You might also pay a stockbroker commission or fees when buying and selling stocks.

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