Be wary of any project that migrates its token to Binance Chain

Foreword: This post is focused on projects that migrate or solely issue their token to Binance Chain. It does not apply to wrapped tokens.Most complaints about Binance Chain are hinged on the loose application of the 'DEX' label, to which I agree that non-custodial would be far more appropriate. These concerns come with centralization criticisms that I believe are entirely warranted. But I think there is a more pressing matter that should be considered.The only time a unique token actually needs to be issued is if that token is programmed with unique functionality (defined within the smart contract). This is what provides dApps the ability to expand the functionality of a platform beyond simply transferring assets from A to B.As Binance Chain has no smart contract functionality, there are no uniquely programmed assets.If a dApp can migrate to Binance Chain without compromising the service it is offering, then it is a glaring indicator that there is no reason for the token to exist in the first place. This suggests the token was only created as a mechanism to avoid fundraising regulations and negate any potential legal repercussions for malicious behaviour, which in turn should cast doubt on the legitimacy or motives of the project.Please note that this is not an attack on Binance or the BNB token; if they can provide a useful service or returns for investors, then power to them and those that are invested. However, it is a warning about any project that hosts its token solely on Binance Chain as opposed to just issuing a wrapped 'B-token' for the sake of leveraging BNB pairs or liquidity. One of these is not like the other, as in the case of a wrapped token, programmed functionality still exists on that token's host chain.This commentary can be extended to the majority of initial exchange offerings (IEOs) in general. If a token is not programmed with custom functionality, it realistically has no reason to exist and is likely just a vehicle for unregulated fundraising.The only exception to this is if the IEO is being performed to allow instant access to exchanges for investors of a token that will eventually be swapped to another platform with support for programmable assets. That being said, any such token swap promises should be investigated thoroughly.

Submitted April 18, 2019 at 11:44PM