Exchange Binance, starting DEX which has become one of the major events in the cryptocurrency space this week, were able to use their position to obtain interested information from projects wishing to release their tokens on its site. This was stated by the author of YouTube-channel Crypto Chico, who told the story of a startup Blocknet.

Blocknet is working on creating a Protocol of the second level to ensure compatibility of the block chain and has its own decentralized exchange BlockDX. In August 2018 Blocknet turned to Binance with the application for listing of its token BLOCK and passed a standard procedure, during which he was asked to answer a series of questions about the team, the nature of the product, target audience, etc.

While such a list of questions Binance directs all projects, interested in listing on its platform, in the case of the Blocknet, it was not enough. Chapter Binance business development Ashley Ouyang contacted the project and asked to answer additional questions.

The Blocknet developers filled out the necessary forms and waited for the response of the exchange, which was not more than a month. Sensing something was wrong, they re-examined the questions put to them, then their suspicions only got stronger.

Among other things Binance wished to obtain information about:

  • Develop project infrastructure compatibility of the block chain and the possibility of obtaining access to the relevant code in a repository on GitHub;
  • The reasons for the development of DEX;
  • The ways to solve the problem of the domain name system (DNS) in the blockchain.

Taking into account the fact that Binance announced its DEX in March 2018, i.e. 5 months before treatment Blocknet, Chico Crypto wonder about the reasons for the interest of the exchange to technology startups.

Also a curious list of persons who participated in the discussion of listing between the Binance and Blocknet. The startup claims that multiple developers Binance made questions that go beyond the standard procedure. In addition, suspicion fell on technical Director platform NEO Eric Zhang. Blocknet indicates that Zhang asked to access the repository on GitHub, interested in infrastructure, DNS issue and solution for data storage in the blockchain.

Eric Zhang in the list of investors Binance. Source: White paper Binance

The answer to the last question could be interesting as NEO, developing a system of data storage NeoFS and Binance, where such a mechanism is necessary for her DEX. Zhang is investor Binance, which may explain his interest in obtaining the data useful for his platform and for the exchange.

The information provided is, however, not helped Blocknet to bring his token to the exchange, and his application was rejected. Binance has established itself as one of the most reliable players in the cryptocurrency ecosystem. However, her relationship with startups for which the token listing on a major stock exchange is often the key to success, and not for the first time form the basis of these stories are “tainted”. On the other hand, Blocknet, knowing the intention Binance to develop its own decentralized exchange, followed a cautious approach to the issue of disclosure of information of a similar nature.

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