Regulation
Binance’s Cryptocurrency Selection Process Explained by Co-Founder
9.43am ▪ 4 min read ▪ by Mikaia A.
In this period in which Binance is trying more than ever to restore its image after the turbulence of 2023, the exchange stands out for its strategy of transparency and rigor. One of its co-founders, He Yi, recently spoke about the criteria for selecting altcoins on the platform. Let’s dive into the details of this policy and discover the challenges Binance faces in satisfying its users and maintaining its credibility.
Cryptocurrencies: Binance’s Strict Listing Criteria
He Yi, co-founder of the world’s first cryptocurrency exchange, wanted to clarify the strict rules that govern altcoin listings on Binance in an interview. In your opinion, the process is far from being a mere formalityEvery project must go through a series of internal assessmentsoften relentless, before claiming a place on the platform.
Among the essential criteria are:
- Technical basis and market potential: the project must be based on solid technology and have significant market potential;
- Popularity and user interest: The market level and user interest are carefully examined;
- Investor support: A project must have reliable financial support to ensure its sustainability;
- Project life cycle: its duration and potential for sustainable development are also assessed.
He Yi said these projects are regularly observed and reassessed. “Some projects issue listing rumors before we even contact them, creating pressure. We must avoid falling into these traps,” he added.
Ultimately, the listing decision is based on a multi-level evaluation process, involving multiple people to ensure objectivity and rigor.
The psychological expectations of users
Another point raised by He Yi concerns the often unrealistic expectations of cryptocurrency users. Many are hoping for 100x or 1000x returns, unlike traditional investors who are content with 20% – 30% annual returns with BNB, for example.
This difference in perspective poses challenges for centralized exchange (CEX) Binance, which seeks to educate their users on the reality of financial markets.
He Yi stressed:
“We need to help users understand market evolution and cycles and adjust their expectations accordingly,” he said.
Furthermore, He Yi acknowledged that despite all their efforts, Binance Can’t Satisfy Everyone.
“Our goal is to offer popular and relatively reliable projects, but this does not guarantee that the value of all projects will increase,” he clarified.
This candor from Binance regarding the fluctuations and cycles of the cryptocurrency market is essential to maintaining user trust.
Therefore, Binance stands out with a rigorous and transparent approach in terms of altcoin prices, as we strive to adapt to user expectations in the face of market volatility. “We continue to adapt and evolve to better serve our community,” Yi concludes.
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Mikaia A.
The blockchain and cryptocurrency revolution is happening! And the day the impacts are strong and the most vulnerable economy in the world is affected, against all hope, you will say that I was for that I chose
DISCLAIMER
The views, thoughts and opinions expressed in this article are solely those of the author and should not be construed as investment advice. Do your own research before making any investment decisions.