Some users in the trading channel may have observed that Binance moved a huge amount of FIRO into MEXC which was followed by a dump in the price. There were some accusations that the core team was doing this and that we are dumping for exit liquidity. This is far from the truth. I even received some nasty DMs…
But let’s look at the onchain evidence:
Binance moved 167555 FIRO, which forms part of the collateral backing BEP20 FIRO here to MEXC.
https://explorer.firo.org/tx/297c5b4f645b69017cb47d7701d3dfb671a42475d5e139a41bc0e5c849436098
They also reduced the available BEP20 FIRO through a burn transaction here. You can see the total max supply of BEP20 FIRO here which is 707,443.497463 FIRO.
https://bscscan.com/token/0xd5d0322b6bab6a762c79f8c81a0b674778e13aed
This corresponds with the amount held in Insight (another like 1-2 FIRO difference) which is the address Binance is holding the collateral currently.
We asked Binance for clarification on this and they claim it’s from users who still held FIRO balances but did not withdraw it after the delisting. They used this opportunity to liquidate it into stablecoin for these users.
They claim that they have completed the liquidations and that there are no more FIRO from users to convert so we don’t expect any large scale dumps from them if we accept their explanation.
Binance still holds the FIRO backing the BEP20-FIRO collateral but that may be owned by other users (not Binance) since many exchanges including MEXC and other users still hold BEP20 FIRO. They still continue to honor redemptions of BEP20-FIRO with native FIRO through their exchange.
More reason for users to switch away from BEP20-FIRO until we have a more decentralized wrapped version via Rosen Bridge.
