Binary, owned and operated by the Binary Ltd. group of companies, is an award-winning company that specializes in online options trading, such as binary options, forex and CED products. Binary employs a variety of different contracts for investors to explore and invest with including ranging contract sizes, ranging contract lengths and contracts for dozens of markets (Commodities, indexes, virtual events, stocks and currency pairs, to name a few). Along with an array of platforms, trading algorithms and bots, and even a mobile online trading platform, Binary is now launching their new trading platform; one that lets investors trade with cryptocurrencies.
Token Sale Process
Binary will issue a token sale based on the Ethereum blockchain. That means these tokens will be connected to the Ethereum network and will require ‘gas’ for transactions. The company claims, however, that in the future it might issue new tokens under new blockchains. Scouring through Binary’s immensely long whitepaper, it doesn’t specify the reason for mentioning future token issues. Ethereum ERC20 is the most popularly used token standard in the world at the time of writing this review, but in the highly volatile and changing market of cryptocurreny, that might change in a year’s time. Binary are choosing to leave themselves the option to issues future tokens, outside of the Ethereum ERC20 standard if they so wish.
Token holders will be granted two rights:
- The right to receive payments linked to the value of dividends paid on an ordinary Binary share.
- The right, subject to certain pre-conditions, to convert the token into an ordinary share. The market value of the aggregate number of tokens to be converted must exceed $5,000.
There seems to be an incentive for investors to invest in the Binary token – token holders get dividends just like a shareholder, and investors can swap their tokens with ordinary shares. There are no means to buy Binary’s ordinary shares since they are not available on the market.
However, the incentive to buy a token might be diminished by the practicality of it all. Token holders will receive dividends, just like shareholders, so why swap the token for shares, which also grant the same relative amount in dividends.
The tokens will be offered in an electronic auction process where the price for each token will be determined through a bidding process, instead of being pre-set by the company. An investor may place a bid for the number of tokens the prospective investor wishes to purchase at the price per token that he is willing to pay. For instance, investor A might place a bid for 400 tokens at $1.34 per token while investor B might place a bid for 50 tokens at $1.01 per token. Once all the bids have been submitted, the allotted placement is assigned to the bidders from the highest bids down, until all the allotted tokens are assigned. The price that each bidder pays is based on the lowest price of all allotted bidders, or essentially the last successful bid. For example, even if an investor bids $1.35/token for 1,000 tokens, if the last successful bid is $1.29/token that bidder will only have to pay $1.29 per token. Note, the minimum price per token is $1 or the equivalent in other currency. Other currencies include GBP, EUR, AUD and cryptocurrencies such as BTC and ETH. Any bids for tokens in currencies other than USD will be converted to USD at a market exchange rate.
To participate in the auction, prospective investors will need to have opened an account on Binary.com and to have successfully completed the company’s “know your client” authentication procedure, and have funded their Binary.com account using the available procedure. At the end of the auction, unsuccessful bidders will have their bid amounts refunded to their Binary.com accounts, in the same currency and amount.
Binary is planning to offer their token, which currently has no name, on Lykke.com. Lykke is a new exchange platform that aims to expand from dealing with foreign exchange only to fixed incomes, equities, commodities and more.
Binary Ltd., formerly known as Regent Markets Group Ltd., was founded in October 1999 by Hong Kong based hedge fund manager and entrepreneur Jean-Yves Sireau. After receiving $2 million in funding in 1999, Sireau filed his unique position as the then sole serious competitor in the business of fixed-odds financial betting and registered the company under BetOnMarkets. Since it went public in 2000, the company garnered a lot of attention and awards including ‘Best Fixed-Odds Financial Trading Provider’ award by Shares Magazine UK in 2007 and ‘Best Customer Communication Firm’ award by Investors Chronicle in 2008. The company is considered to be the leading force in fixed position betting among other financial instruments and their statistical charts only tell one story – that of success.
|Token Sale Dates|| 15 November 2017 – 25 December 2017|
The company has contacted and notified us the token sale might be pushed to November. Check the company’s site for the latest information.
|Total Supply||10,000,000 Tokens|
|Raise Limits||To be disclosed at a future date|
|Pricing Structure||The tokens will be offered in an electronic auction process where the price for each token will be determined through a bidding process, instead of being pre-set by the company. The minimum price per token is $1 or the equivalent in other currency.|
|Technical White Paper||The whitepaper is very long at 135 pages, and technical to the layman’s eyes. There are a lot of legal phrases which are to be expected from a trading company of this magnitude. Very little is said about the purpose of the token sale and the tokens themselves.|
|Team||Binary is one of the largest financial trading companies in the world. They have consistently shown growth in every aspect – net worth, turnovers and customer base. There doesn’t seem to be any natural blockchain fit nor any blockchain ‘talent’ on their roster.|
|Location||Offices in Malta, Malaysia and Japan, operates worldwide. The company itself is registered in the British Virgin Islands.|
|Token Rights||1. The right to receive payments linked to the value of dividends paid on an Ordinary Share.|
2. The right, subject to certain pre-conditions, to convert the token into an ordinary share.
*Disclosure – At the time of writing, CryptoRated‘s staff owned no Binary tokens.