Binance woos BNB holders with token airdrops for joining lending program

Crypto exchange Binance has announced a new airdrop program for BNB holders following reports that Changpeng Zhao controls over 60% of the token’s circulating supply.

In a Wednesday announcement on its website, Binance introduced a new program aimed specifically at Binance Coin (BNB) holders in a bid to foster a “healthy and sustainable market environment.”

The so-called HODLer Airdrops program will reward BNB holders with tokens issued by projects “with a large token circulating supply that intend to soon list on Binance.” The only condition is that BNB holders have to join Binance’s lending program known as Simple Earn and lock their tokens.

It is unclear which tokens will be airdropped among Simple Earn participants. But, Binance states it seeks to engage with “small to medium projects with strong fundamentals, a large circulating supply, and strong and organic communities.”

Participation in the program requires BNB holders to complete KYC (Know Your Customer) verification. Binance also notes that eligibility depends on the user’s “country or region of residence,” without further elaboration.

The new program comes shortly after reports indicated that Binance founder Changpeng Zhao, recently sentenced to four months in prison after pleading guilty to money laundering violations, owns 64% of BNB’s circulating supply, putting him in control of more than $56 billion worth of tokens.

A Forbes investigation revealed that BNB’s initial coin offering in 2017 was initially “undersubscribed,” leading Zhao and his company to “funnel unsold shares into wallets he controlled.” So far, Binance hasn’t publicly commented on Forbes’ findings.