Binance is one of the largest exchange. As thus, the exchange has a huge amount of power that allows it to charge anything it likes. The exchange has recently added one of the oldest and least fashionable cryptocurrencies: bytecoin.
Usually, Binance lists the most recent tokens such as Wanchain. Apparently, the exchange is now ready to add any token, providing the price is right. The newest additions of Binance to the listings have been raising some concerns from traders. The reason being that bytecoin (BCN) is considered as a dubious coin due to an allegedly huge pre-mine when launched in 2014. After that, the coin disappeared only to resurface sometime last year.
Bytecoin appeared on Binance on May 8, and before then, it was only available on the unfashionable stocks.
Bytecoin’s presence is as controversial as its gloomy past. Any coin listed on Binance is expected to experience an instant pump, but BCN’s already has been higher than usual, and so was its fall: eye-catching. Bytecoin increased by 270 percent and crashed 3 hours later, leaving its daily gain at 71 percent.
Coincodex, a coin comparison site “called foul play as massive price discrepancies for BCN appeared between Binance and Poloniex.”
In a blog post, Coincodex wrote: “Who in the world was buying BCN at a price which was 10 times higher than elsewhere? Perhaps there were some unwitting traders who didn’t want to miss out on a token that was going vertical and bought before checking prices on other exchanges, but it seems very unlikely that BCN trading activity on Binance today was entirely organic.”
Poloniex had to halt BCN withdrawals because shortly after bytecoin was listed on Binance, its network stopped confirming transactions.