Binance, announced a project applicant plan for the crypto listing, where it will give preference to “high-quality” projects. It admitted that there is a pattern of tokens being issued with high valuations and low initial floats.
Binance noted that there is concern in the community, as there are “little advantages” for traders from the rise of tokens with high valuations and low supply. It believes this trend will not decrease in the coming years; it is quite the opposite.
Binance Will Allow Only “Serious Projects” on Token Listings
Crypto exchange Binance pledged to help design a “healthy and sustainable” market that puts users’ interests first, not just companies seeking liquidity.
SponsoredBinance megadrop is the token issuance platform that integrates exchange coin-earning products with the web3 wallet. This allows users to be early adopters of web3 projects, even if they have not yet been launched on Binance.
Meanwhile, Binance Launchpad is a platform that supports aspiring projects for existing blockchains, triggering a paradigm shift in the cryptocurrency crowdfunding field.
Read more: How To Create a Crypto Token and List it on a DEX
The crypto exchange accused that some airdrops with diluted valuation and a low generation model are harmful because they generate “enormous” advantage pressure, affecting potential investors and members loyal to the project. Binance promised to “reshape that trend.”
The exchange estimated that $155 billion in tokens will be unlocked between 2024 and 2030, creating “selling pressure” due to the substantial amount of tokens entering the market.
“Binance is committed to providing value to users while safeguarding their interests. Supporting small and medium-sized crypto projects is one of the ways to reduce the market risk that has been observed from some sectors,” explained in his statement.
Binance seeks to finance projects in the industry by valuation (small and medium-sized companies), businesses, and products. Additionally, foundations (social commitment and community), and regulation and compliance.
Read more: Cryptocurrency Coins vs. Tokens: What’s the Difference?
Researchers noted that over 80% of the tokens listed on Binance have lost value in the last six months. Only 5 out of 31 listed tokens have seen price increases since their airdrop. These tokens – ORDI, Jupiter (JUP), Dogwifhat (WIF), Jito (JTO), and Memecoin (MEME) are meme coins or projects without significant venture capital backing.
