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How is Binance affiliated with BTCST?

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Cryptocoins Exchanges / Binance 201 Views

Dear Binance Team,

On this research report -> https://research.binance.com/en/projects/btcst

it says that Binance has a partnership with BTCST, and quote:

"will form a governance board that collectively decides on material issues of the project, which include new token issuances, cost level adjustments, surplus profit distribution, and future development. The governance board will have three seats upon launch, two of which to be occupied by the project team and one by the partnering mining pool."

Due to this Binance partnership and the fact that the project launched on Binance Launchpool, many investors had confidence in this project and bought their t-assets.

tBTC is now only worth 0.26 BTC. Additionally the project has introduced a 30% tax on sales and token transfers, so that holders are not able to get out without losing an additional 30% of their value.

According to the Tau asset white paper (Source: https://www.btcst.finance/static/Tau-Whitepaper.pdf):

"To synthesize a τAssets, the τ protocol requires the staking of hashrate tokens collateralized by the relevant PoW hashrate and the forgoing of PoW rewards in return for the synthetic versions. For example, synthesis of τBitcoin would require synthetic mining with hashrate tokens collateralized by standardized Bitcoin hashrate. The combination of staking with the relevant PoW hashrate and the surrendering of PoW rewards represent hashrate consumption, imparting inherent value into the resultant synthetics.

The forgone mining rewards will be reserved for open market repurchases of τAssets, if necessary, as discussed below"

The team ignores questions regarding these forgone mining rewards and repurchases that should have taken place. That's why many investors now believe that the collateral never existed in the first place and that the repurchases have not taken place.

Additionally by now the mechanism has been changed to the above-mentioned 30% fee.

What's worse is that the BTCST Telegram community is full of bots, and it seems only one admin has access to the project team. They have promised updates and an AMA for weeks now, but keep the community in the dark about their strategy to re-peg the t-assets. Additionally they ignore all critical questions by investors, or even ban or limit them which further diminishes investors' trust. Due to these factors the asset is losing more peg daily, and some investors do fear that what they are experiencing is a slow rug.

There cannot be found any information about the CEO Alex Zhao or any other team members online which makes many investors doubt if they exist at all.

My questions to Binance are:

  1. Can you please shed some light on the level of partnership that you have with BTCST and on which levels you cooperate?
  2. Which Due-Diligence has been done before launching BTCST on Binance Launchpool and entering into further partnerships with them?
  3. Did the BTCST team have to follow KYC-procedures before being launched on Binance Launchpool?

Thanks!

submitted by /u/Abraxa3
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