Celer Network falls 80% minutes after token sale on Binance’s Launchpad

The latest project to go live on the Binance Launchpad platform, Celer Network, has seen 80% of its value wiped away just hours after the token sale

The latest token to undergo a token sale on Binance’s Launchpad platform has fallen more than 80% just minutes after the token sale finished.

Layer-2 scaling solution Celer Network raised $4 million in less than 18 minutes last week. While initial optimism surrounding the project was high, the price of CELR tokens fell to a low of 0.001330 BNB after being sold for 0.00434 BNB in the token sale.

The downside price action has raised concerns on social media over the viability of Binance’s Launchpad, with some questioning how difficult the fall in price must be for Celer Network.

The price of BNB, however, surged 17% over the weekend based on Binance’s announcement surrounding changes to the token sale procedure when using the Launchpad platform.

Binance will introduce a lottery system through the Launchpad platform. The new system will abandon the first-come-first-served system that has currently seen large numbers of investors miss out.

Lottery tokens will be claimed based on the amount of BNB tokens a user holds within a 20-day period. The draw will be completely random and transparent.

“This process will continue until the maximum number of winners (previously set) are matched. The respective BNB will be deducted from each winning user’s balance as soon as they are deemed a winner,” Binance wrote.

Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.

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