Binance Co-founder He Yi Clarifies Token Listing Criteria and Addresses Market Volatility Concerns
Rebeca Moen Jun 04, 2023 18:38
Binance Co-founder He Yi has recently taken to Twitter to discuss the criteria for token listings on the platform, emphasizing that Binance strives to consider the majority of user demands when listing coins.
Binance Co-founder He Yi has recently taken to Twitter to discuss the criteria for token listings on the platform, emphasizing that Binance strives to consider the majority of user demands when listing coins. He stated that listing decisions aren't solely at the discretion of one person, including CEO Changpeng Zhao, but are a broader collaborative decision-making process.
In his tweets, He Yi also touched on issues related to coin performance and market volatility. He mentioned that some newly listed tokens have not performed well, while some lesser-known tokens have experienced drastic price fluctuations. In response, Binance monitors the wallets of project owners and market makers associated with the Launchpad platform. In addition, they are now requiring multi-party custody of tokens issued by project owners as part of mutual oversight.
Addressing recent Initial Exchange Offerings (IEOs) that quickly achieved multi-billion-dollar market capitalizations upon listing, He Yi highlighted that "a large number of projects come from the previous bull market, and are generally over-pursued by capital." Consequently, the price of IEO projects listed on Binance is typically lower than the price of the last round of investor investments.
He Yi also criticized the practice of directly listing projects based on market pricing given by users. He found this approach to valuing market capitalization unreasonable. "Projects are often priced based on what users are willing to pay in the market, a point we find very unreasonable when it comes to market capitalization," he said.
These statements and actions underscore Binance's commitment to maintain fairness and transparency in their token listing process and to mitigate the risks associated with cryptocurrency trading.
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