Gravin wood is the famed co-founder of Ethereum which is also the founder of the cross-chain protocol for asset interoperability and data, Polkadot. And he is seen unhappy with the way ‘unscrupulous exchanges’ are handled with the polka dots’ DOT token which just went live on already said crypto exchanges yesterday.
As per wood, the issue is that Kraken and Binance listed Polkadot’s DOT token three days before and agreed upon the redenomination of the DOT. The redenomination akin to the stock split in the traditional equity markets which can sell all the old DOT tokens exchanged for 100 new DOT tokens according to the ration of 1:100.
The confusion caused few DOt holders a great deal of pain – say representatives of polka dot – that is the perceived 90% fall in the value of DOT where few traders may act on mistakenly. Then what is more – the event highlights the growing tension between the community concerning projects such as Polkadot and the business impulses few of the crypto’s largest exchanges.
The splitting of DOT was confirmed by the community vote that is initiated July 13 and concluded four weeks later with around 86% of votes cast choosing the 100x token rising. As given explanation in the polka dot medium post, the denomination changes have no effect on the economics of the Polkadot ecosystem instead of only reflecting in the will of the community for adjusting the displaying price of the DOT tokens in the lead-up tokens becoming transferable.
DOT tokens were nontransferable beyond OTC trades!
DOT tokens were nontransferable earlier beyond the OTC (Over-the-counter) trades that manually match sellers and buyers. The 72 hours following the beginning of the token transferability was planned before the split occurred on-chain for enabling OTC desks for settling on the outstanding trades which can impact due to redenomination.
The agreed-upon the waiting period started on August 18 (Tuesday) with the exchange listings anticipated this coming Friday that is tomorrow on 21st august. But both Kraken along with Binance listed DOT on their respective exchanges by using the new denomination before on-chain rising had occurred which leads to the price that feeds indicating roughly around 90% fall in the DOT value.