The King of COPY, Binance, Cheated Again
Abstract
On April 13th, 2020, Binance announced the news that Binance launched options trading on their mobile App. After testing and comparing, we found that the so-called Binance Options trading looked exactly the same as the Options trading we have seen and tested on BitOffer in October 2019. Whether the appearance or any documents about Binance Options trading, they are all similar to these of BitOffer Options trading. In addition, the formula when investors settle their orders of Binance Options has a subtle difference from that of BitOffer Options. When investors are about to settle their orders on Binance Options right after placing the orders, if the direction they choose is opposite, the payoff would become 0. However, when the same case happens on BitOffer, investors could still receive at least 50% of the premium they use to buy the options contracts.
1.The Appearances of Binance Options & BitOffer Options
In these images above, the parts of Options trading on Binance and BitOffer are almost the same. If we cover the part of “Trading Status” on BitOffer, we would find out the truth that Binance made a good copy from BitOffer Options.
(Off-screen Voice: I still remember the news on the last September: Binance was caught and suspected of copying BitMEX’s futures documentation.)
When I was comparing this part, one more interesting thing was that the quotation (premium) of Binance Options was shown nearly the same numbers on BitOffer Options.
2.Documents about Binance Options Trading Published on Binance.com
After reviewing Binance Options, my first task after that is to search their official articles about it. Then, I found the announcement of “About Binance Options” on https://www.binance.com.
Please be patient to check the screenshot of “About Binance Options” above, because you shall get shocked by the follows:
With my burning curiosity, I searched “Options” on BitOffer announcements, and checked all of them.
Check what I found:
I have to admire that Binance is a respected COPY writer. In my view, advertising materials came from them were always amazing and creative. It cannot be denied that besides Binance advertisement, they have done their best to be a COPY writer.
3. After 2 Simple Contrast, the PNL Formula of Binance Options Performs Like a Robber.
When I was testing Binance Options, I bought BTC Call 1h. Then the index on the chart started falling, and I found that if I chose to settle my contract at that moment, the estimated PNL would be 0.
Finally, things became different. Before I wrote this article, I bought a Call Options contract on BitOffer, and when the index fell also, I clicked “Unwind” to close my order. We could see that when the same case happened on BitOffer Options, I was still able to receive at least 50% of my premium that I used to buy the contract.
Thus, the obvious truth comes out: When investors are about to settle their orders on Binance Options right after placing the orders, if the direction they choose is opposite to the market, the payoff would become 0.
However, when the same case happens on BitOffer, investors could still receive at least 50% of the premium they use to buy the options contracts. Even the same situation happens, Binance Options seems to be more like a robber than BitOffer Options.
What I concern about is that why such similar products can make the profit formula when settling the contracts be different. Apparently, Binance always makes things become innovative and creative.
Conclusion
Binance, as one of the most renowned cryptocurrency exchanges, should have developed more cryptocurrency products and services on their own so that the cryptocurrency industry can be pushed to grow much more healthily. Instead, they have kept copying stuff from other exchanges: after acquiring JEX, FTX, and copying documentation from BitMEX, now they transplanted BitOffer Options to their mobile App. Investors may buy it, but in the long term, paper cannot wrap fire no matter how you cover it.
When ICO/IEO remained stagnant, Binance became confused and did not move forward as it should do.
Maybe short BNB is not the correct thing, but short Binance is the correct thing.
