Binance Lists Blockstack Token (STX) For $250,000 Despite The Exchange Claiming It Is Not a Fee
Binance has been involved in a controversial story recently. According to a recent filing of the U. S. Securities and Exchange Commission (SEC), the company has recently received $250,000 USD from Blockstack (STX) to list their tokens for a year. However, Binance confirmed that the token was listed “for free”, which has caused quite some controversy.
The SEC filing states that 833,333 STX token were paid to Binance. With each one of them being worth around 30 cents, the company paid around $250,000 USD. Not only was the amount paid upfront, but the company will make three additional payments to the exchange, all with the same amount of money. These payments will be made on the three first anniversaries of the filing.
The company will also pay around a million dollars to Binance during the timeframe of three years, but also an additional $100,000 USD in payment fees for marketing.
Per the SEC filing document,
“[Blockstack] will pay three additional incremental payments of 833,333 each, on the first, second and third anniversaries of the Services Agreement’s effective date provided the Stacks Token is continuously listed on Binance prior to each such date. In addition, the Company will pay Binance a USD $100,000 payment for Binance’s marketing services.”
Binance, a company that promised to give all of it's listing fees to charity, states that this was not a listing fee.
The official announcement from the company is that this was a “marketing fee”, which was Blockstack’s idea:
“A long term payment fee is an incentive proposed by Blockstack for Binance to keep the token listed on the exchange. This is a new payment fee proposed by Blockstack.”
Blockstack’s CEO Muneeb Ali continued,
“The ‘Long-term Payment’ is something new that is not part of Binance standard agreements and it was an idea that I had and I proposed it to them. This long-term payment is meant to watch out for the Blockstack ecosystem by incentivizing Binance to list Stacks over many years and aligns well with our long-term focus. The marketing fee is a joint marketing campaign that we plan to run later on, again that is not a ‘listing fee’ but a marketing campaign that we plan to launch in the near future.”
In any case, Binance agreed to receive almost a million dollars over the course of three years and none of that money will go to charity. Whether the company is lying or not, is up to how people want to interpret these actions.