Altcoin News: Binance Unexpectedly Discovered 9.5 Million XLM Awards and Distributes Them to Users

July 19, 2019, by Marko Vidrih on ALTCOIN MAGAZINE

The Binance Exchange this Thursday reported that it unexpectedly discovered 9,500,000 XLMs worth $775,000 in their wallets, earned by it on stacking cryptocurrency.

“Back in August 2018, the Binance team heeded the Stellar team’s recommendations to change some parameters on both cold and hot wallets. This change has allowed us to unknowingly earn staking rewards starting August 31, 2018. Fast forward to this week, when we looked into the staking of Stellar for Binance.com, we discovered that we had already earned 9,500,000 XLM ($775,000 USD) worth of extra XLM tokens. All weekly staking rewards between then and now are documented on the blockchain (see here) and credited to Binance. When we discovered this, we made two decisions: to immediately add staking support for XLM, and to share the XLM rewards we gained to the entire community.”

From July 20 Binance will add the possibility of stacking Stellar (XLM). For 40 days, the exchange will daily record user account balances. On September 1, Binance will distribute the awards due to users based on the average daily balance of their accounts at the previous stage.

In addition, among these users will be further distributed 9.5 million XLM, earned by the exchange from August 31, 2018. Thus, on September 1, users participating in the XLM stacking, in addition to the basic payment, will receive a bonus proportionally distributed between them.

“ This means that on September 1, Binancians who staked XLM tokens will get a bundled bonus payment of XLM staking rewards, including the regular monthly staking reward from the 40-day period and the one-time distribution of 9,500,000 XLM shared proportionately among Binance users, which is estimated to be worth 10 to 12 months of typical monthly rewards. Read the details about that distribution here,” writes Binance.

To participate in the program, the user must keep at least 10 XLM on his account. In the future, the distribution of awards will be held until the 5th day of each month.

In addition to XLM, Binance supports the stacking and distribution of awards in NeoGas for holders of NEO, Ontology Gas for holders of Ontology, VTHO for holders of VeChain, and BitTorrent tokens for holders of TRON.

The XLM rate on the background of this news rose by 16%.

Chart via TradinView

Previously, Binance CFO Wei Zhou stated that his company is not engaged in stapling cryptocurrency at the expense of the assets of its users, in addition to those that are known publicly. According to one expert, the practice of secret stacking for the sake of enrichment is quite common among cryptocurrency exchanges, which is confirmed by data from blockchains.

Author: Marko Vidrih