The world's largest cryptocurrency exchange, Binance, has announced a new initiative to support cryptocurrency projects. Preference will be given to “high-quality” startups, which will have an easier listing process and access to two marketplace platforms.
Binance representatives are concerned that the number of high-cap tokens with low supply is growing on the market. They do not provide any benefits to traders, so the problem needs to be addressed.
Binance will only allow “serious projects” to list tokens
Binance promised contribute to the creation of a healthy and sustainable market, in which the interests of users will always come first, and not companies seeking to obtain liquidity. To protect traders and attract new users to the industry, the crypto exchange has created:
- Binance Megadrop is a token issuance platform; combines exchange products for earning money with the exchange's Web3 wallet. The platform provides users with early access to projects before their official listing on Binance.
- Binance Launchpad – this platform supports new projects on existing blockchains; allows projects to find early buyers of their tokens.
Representatives of the crypto exchange believe that airdrops of tokens with a low market value and a poor creation model are harmful to the market. They create enormous pressure and negatively influence potential investors and loyal project participants. Binance wants to “reverse this trend.”
The trading platform estimates that crypto projects will unlock $155 billion worth of tokens between 2024 and 2030. This, in turn, will trigger selling pressure. But Binance figured out how to reduce the risks.
Binance will begin to actively finance small crypto projects. In addition, the exchange plans to support social initiatives and communities, as well as follow all rules and comply with regulatory requirements.
Token listings on Binance. Source: X/TradeTheFlow
According to analysts, more than 80% of the tokens listed by Binance have dropped significantly in price over the past six months. The exceptions were a few memcoins and projects without much venture backing: Ordi (ORDI), Jupiter (JUP), Dogwifhat (WIF), Jito (JTO) and Memecoin (MEME).
Source: Cryptocurrency
I am an experienced journalist and writer with a career in the news industry. My focus is on covering Top News stories for World Stock Market, where I provide comprehensive analysis and commentary on markets around the world. I have expertise in writing both long-form articles and shorter pieces that deliver timely, relevant updates to readers.
