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Binance exchange is making a drastic change to its token listing strategy as it aims to pioneer more diversity in the industry. In its latest announcement, the trading behemoth said it plans to start supporting smaller- to medium-valued projects.
Why Binance strategy change?
Binance exchange said it remains committed to driving sustainability across the board, and this involves stopping the predominant listing of highly capitalized projects. The exchange noted this disadvantage in predominantly listing high-valued projects with low circulating supplies as a source of selling pressure. This the trading platform said will not be good for retail investors.
Gamza KhanzadaevBinance is recognized not just as the biggest exchange by volume, but as one of the most important entities in terms of supported tokens. A Binance listing is considered by many as the climax of a project’s growth.
Notably, since the lawsuit launched by the United States Securities and Exchange Commission (SEC) over its supported tokens, the trading platform has implemented more delistings, cutting across most token pairs. The latest push by the exchange underscores its commitment to driving true ecosystem growth overall.
New modalities
According to Binance, project owners may apply for listing on its platform through any of its channels. The exchange said the listing might be direct, through its Launchpool or Megadrop outlets. The trading platform, however, noted that to qualify for listing as a small or medium-cap project, applicants must have a Minimum Viable Product (MVP).
Binance also set a condition that prospective projects need to have an active team and a sustainable token allocation to the community. To take advantage of the leniency in listing, Binance said projects from all sectors are welcome to apply.
Godfrey BenjaminBinance is known to pioneer new initiatives that other exchanges follow through with. One unique example is the release of proof-of-reserve (PoR) to showcase token holdings against customers' balances.
Alex Dovbnya
Vladislav Sopov
Dan Burgin