{"id":27523,"date":"2020-08-20T19:54:31","date_gmt":"2020-08-20T16:54:31","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=27523"},"modified":"2025-08-26T21:18:39","modified_gmt":"2025-08-26T18:18:39","slug":"polkadot-founder-condemns-binance-and-kraken-for-rushed-listing-of-dot-tokens","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/polkadot-founder-condemns-binance-and-kraken-for-rushed-listing-of-dot-tokens\/","title":{"rendered":"Polkadot founder condemns Binance and Kraken for rushed listing of DOT tokens"},"content":{"rendered":"<p>Polkadot founder Gavin Wood called exchanges that added DOT tokens to the listing immediately after their unlock <a href=\"https:\/\/forklog.com\/en\/news\/binance-and-kraken-list-polkadot-after-dot-unlock\">added<\/a> &#8216;unscrupulous&#8217;. He believes that in light of the asset&#8217;s upcoming redenomination they exposed the community to risk.<!--more--><\/p>\n<blockquote class=\\\"twitter-tweet\\\">\n<p dir=\\\"ltr\\\" lang=\\\"en\\\">As forewarned, some unscrupulous exchanges listed today rather than Friday \u2014 the Denomination Day agreed upon by the <a href=\\\"https:\/\/twitter.com\/Polkadot?ref_src=twsrc%5Etfw\\\">@Polkadot<\/a> community.<\/p>\n<p>While we can\u2019t control these CEXs, we can urge them to stop.<\/p>\n<p>Their actions are putting our community at risk.<\/p>\n<p>\u2014 Gavin Wood (@gavofyork) <a href=\\\"https:\/\/twitter.com\/gavofyork\/status\/1295790782973186049?ref_src=twsrc%5Etfw\\\">August 18, 2020<\/a><\/p>\n<\/blockquote>\n<p><script async src=\\\"https:\/\/platform.twitter.com\/widgets.js\\\" charset=\\\"utf-8\\\"><\/script><\/p>\n<p>Wood&#8217;s displeasure was directed at Binance and Kraken. Both of these exchanges <a href=\"https:\/\/forklog.com\/en\/news\/binance-and-kraken-list-polkadot-after-dot-unlock\">added<\/a> the DOT tokens to listing two days before the planned denomination.<\/p>\n<p>According to the head of the Polkadot project, the Web3 Foundation behind the project&#8217;s development is exploring all available options to protect the <a href=\\\"https:\/\/twitter.com\/Polkadot?ref_src=twsrc%5Etfw\\\">@Polkadot<\/a> community from unscrupulous exchanges.<\/p>\n<blockquote class=\\\"twitter-tweet\\\" data-conversation=\\\"none\\\">\n<p dir=\\\"ltr\\\" lang=\\\"en\\\">The <a href=\\\"https:\/\/twitter.com\/web3foundation?ref_src=twsrc%5Etfw\\\">@web3foundation<\/a> is exploring all available options to protect the <a href=\\\"https:\/\/twitter.com\/Polkadot?ref_src=twsrc%5Etfw\\\">@Polkadot<\/a> community from unscrupulous exchanges.<\/p>\n<p>You can read all of the background on redenomination here:<a href=\\\"https:\/\/t.co\/DzeYQK2FZa\\\">https:\/\/t.co\/DzeYQK2FZa<\/a><\/p>\n<p>\u2014 Gavin Wood (@gavofyork) <a href=\\\"https:\/\/twitter.com\/gavofyork\/status\/1295790784554377222?ref_src=twsrc%5Etfw\\\">August 18, 2020<\/a><\/p>\n<\/blockquote>\n<p><script async src=\\\"https:\/\/platform.twitter.com\/widgets.js\\\" charset=\\\"utf-8\\\"><\/script><\/p>\n<p>On August 21 at block 1,248,328, as a result of the redenomination, each existing DOT token will be split into 100 new ones. The project leadership warned that due to the hasty listings on exchanges the market value of DOT on such platforms could be 100 times lower than the current price.<\/p>\n<p>These fears were borne out. In a comment to <a href=\\\"https:\/\/decrypt.co\/39272\/early-dot-listing-unscrupulous-exchanges-traders-polkadot\\\" target=\\\"_blank\\\" rel=\\\"noopener noreferrer\\\">DeCrypt<\/a> representatives of Polkadot noted that DOT holders in a panic could dump their tokens in connection with a potential 90% drop in price. They stressed that the exchanges&#8217; actions demonstrate a growing chasm between the interests of community-oriented projects and large trading platforms.<\/p>\n<p>Some members of the community confirmed lack of transparency regarding the upcoming redenomination, which could have led traders to take erroneous actions.<\/p>\n<blockquote class=\\\"twitter-tweet\\\">\n<p dir=\\\"ltr\\\" lang=\\\"en\\\">You write on your blog that the redominate action will take place 21st of August, not now. This is quite unclear. I think some people got orders filled against way to high prices. <a href=\\\"https:\/\/t.co\/ASljmc0Wyj\\\">pic.twitter.com\/ASljmc0Wyj<\/a><\/p>\n<p>\u2014 On The Block (@otblockchain) <a href=\\\"https:\/\/twitter.com\/otblockchain\/status\/1295773715804966923?ref_src=twsrc%5Etfw\\\">August 18, 2020<\/a><\/p>\n<\/blockquote>\n<p><script async src=\\\"https:\/\/platform.twitter.com\/widgets.js\\\" charset=\\\"utf-8\\\"><\/script><\/p>\n<p>Until this week DOT tokens were not transferable on off-exchange platforms. To give the ecosystem time to prepare for the update, it was decided that the redenomination would take place roughly 72 hours after DOT transactions became possible.<\/p>\n<p>The agreed waiting period began on Tuesday, August 18, with listings planned to take effect starting Friday, August 21. However, Kraken and Binance added DOT using the new denomination before the changes actually took effect. This triggered price flows indicating a drop in the token\u2019s value by about 90%.<\/p>\n<p>In a community letter, representatives of Polkadot lamented that after governance of the protocol was handed to the validators, the project had little room to \u201chold third parties to account.\u201d Polkadot believed that Binance and Kraken \u201cwent against the community and caused chaos and confusion among DOT holders.\u201d<\/p>\n<p>A Kraken spokesperson told the publication that the exchange acted in the interests of its clients. Binance did not respond with a comment as of this writing.<\/p>\n<p>In July, the Web3 Foundation <a href=\"https:\/\/forklog.com\/en\/news\/polkadot-raises-43-6-million-in-private-token-sale\">conducted<\/a> another private token sale of DOT, raising $43.6 million.<\/p>\n<p>Subscribe to ForkLog news on Telegram: <a href=\\\"https:\/\/t.me\/forkloglive\\\" target=\\\"_blank\\\" rel=\\\"nofollow noopener noreferrer\\\">ForkLog FEED<\/a> \u2014 the full news feed, <a href=\\\"https:\/\/telegram.me\/forklog\\\" target=\\\"_blank\\\" rel=\\\"nofollow noopener noreferrer\\\">ForkLog<\/a> \u2014 the most important news and polls.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Polkadot founder Gavin Wood called exchanges that added DOT tokens to the listing immediately after their unlock &#8216;unscrupulous&#8217;. He believes that in light of the asset&#8217;s upcoming redenomination they exposed the community to risk.<\/p>\n","protected":false},"author":1,"featured_media":27524,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[744,265,193,1461],"class_list":["post-27523","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-binance","tag-gavin-wood","tag-kraken","tag-polkadot-dot"],"aioseo_notices":[],"amp_enabled":true,"views":"19","promo_type":"1","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/27523","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=27523"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/27523\/revisions"}],"predecessor-version":[{"id":27525,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/27523\/revisions\/27525"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/27524"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=27523"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=27523"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=27523"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}