Token Mithril (MITH) is claiming BNB 200,000 from Binance, the equivalent of more than $52 million, following its delisting. According to Mithril, this amount was paid to Binance to be listed on the platform. Should Binance really return Mithril’s funds? No, according to Binance’s CEO, who responded to the request at a time when his exchange is going through “difficult times”.
Binance must return the deposit, says Mithril
While Binance is experiencing a major wave of fund withdrawals due to concerns about the company’s economic health, the world’s largest crypto exchange is not done with trouble.
Indeed, this December 15, Binance has been called upon to pay BNB 200,000 or over $52 million. This demand comes from the community managing the Mithril (MITH) crypto presented as “the most widely accepted token in Asia”.
In a thread posted this December 15, Mithril (MITH) explains that 200,000 BNB had been paid to Binance in order for this token to be listed on the platform.
As part of this partnership entered into in 2018, Mithral says he has donated to Binance Charity and worked with the exchange on other projects both formal and informal. To Mithril’s (MITH) surprise, Binance has announced the imminent removal of the MITH project from its platform. In light of this unilateral termination of the partnership, the 200,000 BNB should be returned, according to Mithril.
Binance CEO says no to Mithril (MITH) request
Mithril’s (MITH) request was commented on by several people including the CEO of Binance. As expected, CZ rejected the request.
For him, the Mithril (MITH) token no longer respects the terms of the contract binding the two parties. For the sake of transparency, CZ even shared a part of the contract that should have remained confidential if Mithril had not publicly addressed the issue. The CEO of Binance also reminded that the 200 000 BNB was a deposit, this one is made to encourage the projects listed on the exchange to keep building.
This deposit can not be returned according to the contract shared by the CEO of Binance. Indeed, it is explicitly stated that Binance has the right to deduct part or all of the insurance deposit when it finds a negative trigger on the project.
In the case of Mithril (MITH), the triggers are numerous, CZ believes.
Indeed, the price of the MITH token, which is currently at $0.0089, is well below the trigger levels. Furthermore, the Mithril (MITH) project appears to be completely dead. It has barely made a single tweet in nearly two years.
Worse yet, the project’s website is simply inaccessible. For CZ and many other Internet users for that matter, Binance made the right decision.
In reaction to this claim, the crypto community has generally agreed with Binance. Still, this saga remains a lesson for the crypto community. Just because a crypto is listed on a major exchange doesn’t make it a solid, promoting project. It’s up to you to do your own research before investing in a crypto project.
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