The decentralized social networking platform Mithril (MITH) was recently delisted from the Binance exchange. In return, Mithril demanded 200 thousand Binance Coins (BNB) as insurance to be listed on the exchange.
Binance CEO Changpeng Zhao (CZ) responded to Mithril’s request with a screenshot via his official Twitter account. In the screenshot he shared regarding the contract between the two companies, CZ stated that if the price of the listed token falls below a certain threshold, the exchange has the right to partially or completely reduce the insurance fund as an additional fee.
Zhao said that the price of the project’s native cryptocurrency MITH has fallen below the threshold stated multiple times. CZ also said that when he looked at the project, he saw that Mithrill had not updated his community in almost two years. However, Binance CEO added that the team made the right decision and acted completely within their rights.
Your token price is way below the trigger levels. Reading the comments. Your website is offline. You haven’t tweeted or updated your community for almost 2 years. I believe our team has made the right decision and acted fully within our right to do so. Regards 2/2
— CZ Binance (@cz_binance) December 16, 2022
Mithril was founded by Jeff Huang, who is known as a famous Taiwanese musician and a popular NFT investor. The founder of the project was also previously accused of allegedly embezzling 22,000 Ethereum (ETH) by on-chain analyst ZachXBT.
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On the other hand, the exchange between Binance CEO and Mithril founder caught the attention of the community. Many in the crypto community stated that the MITH project has not existed since the beginning of 2021, and the listing insurance of 200,000 BNBs is worth $2 million.
PS: 200,000 BNB was around $2m back then. Now it’s around $65.5m pic.twitter.com/iS7kAbpRAp
— Nick (@caysonwilde) December 15, 2022
Others questioned whether it was fair to require security insurance on Binance’s native token for the exchange to be listed. Another user doubted whether Binance’s focus on delisting based on MITH’s price was the right approach.
Binance did not respond to Cointelegraph’s question about the translation time of the news.