As the cryptocurrency industry continues to grow, fraudulent projects are becoming more prevalent. It is more important than ever to prioritise the safety of BinaryX’s investors and users. The team on BinaryX’s IGO platform are exploring ways in which we can fend against bad actors and create a high-security environment for our investors. We have created the following user protection protocols:
Before signing of IGO agreement:
- Project is required to undergo and pass a thorough due diligence assessment to launch with our platform. They have to provide the following documentation for the assessment:
a. Project’s go-to-market plan & roadmap
b.Profile information of project team
c. Public project research report
d. Detailed plan on the usage of funds raised
2. BinaryX IGO requires the project team to provide an audit report from reputable audit companies to verify the legitimacy of their product, token contract and related vesting schedules. We will not work with projects which attempt to include various malicious functions within their scripts.
Before IGO launch:
3. BinaryX IGO requires the project to transfer the agreed amount of their tokens to BinaryX’s address for token distribution. This is to ensure that BinaryX’s users can get the funds they were initially promised by the project team.
Before token distribution:
4. BinaryX will take appropriate measures if the targeted fundraising amount of the project is not reached. For instance, we may choose to return a certain amount of tokens to the original payment address or burn the tokens to preserve the value for existing token holders.
After Token Distribution:
5. BinaryX IGO will allocate a partial amount of the funds raised for the project’s IGO by our platform (in USDT equivalent) and send it to BinaryX’s address. BinaryX IGO will add the liquidity into BinaryX’s liquidity pool (LP) within a specified number of hours after the project team has distributed their tokens to us. This is so that we can set aside the base amount for our liquidity pool to ensure that users are able to trade on the secondary market once the tokens are distributed.
After the project’s token is launched on secondary market
6. To ensure that there is sufficient liquidity, BinaryX will verify that the average number of tokens in our LP is not less than a certain percentage of the total LP for any third calendar day period, except for the first 30 calendar days from the day of launch.
7. BinaryX will provide the raised funds to the project according to the IGO Fundraising Split and Vesting agreement set by both parties. The timing and amount vested will vary between each IGO launch.
Within the timeframe of the BinaryX’s agreement with the project team, if any issues directly related to or caused by the project team occur before, during or after the launch, BinaryX will lock the funds to be vested to the project team until the issues are fixed. Under extreme conditions, BinaryX will return the funds to users who have invested in the IGO phase.
The protocols listed above are crucial for launchpads to mitigate the risks associated with investing in new projects. By conducting due diligence and implementing these safeguarding measures, we can identify any red flags, such as fraudulent activities or misleading claims, and take appropriate action to protect our users. Ultimately, we aim to establish trust between our investors and our launchpad, which is essential for the sustainable growth of the IGO platform.
BinaryX is the GameFi platform behind play-to-earn games CyberDragon and CyberChess, both of which run on the BNB chain.
BinaryX began as a decentralised derivative trading system. The team gradually evolved into developing decentralised video games, and is now transitioning to becoming a GameFi platform offering IGO services to bridge Web2 developers to Web3.
As one of the top 10 projects on the BNB Chain, BinaryX has a vast community of more than 100k coin holders and 30K monthly active wallets. It is also one of the largest metaverse projects by trading volume on the BNB chain, with more than 200 million in market cap. BinaryX also has a token, $BNX, that has consistently demonstrated strong performance despite the bear market.
For more details and information about BinaryX, please visit www.binaryx.pro
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