The CEO of Binance, the largest cryptocurrency exchange in the world by volume, has disclosed some information on how tokens are chosen to be listed on the platform.
The most important criterion for listing a cryptocurrency on Binance is the number of users, CEO Changpeng Zhao said during an interview with Forbes on November 29.
CZ pointed out that many other factors can also affect the listing, such as the number of active addresses on the blockchain, the public on social media and the commits of the code. However, the number of users remains the fundamental parameter:
“If a coin has a large number of users, we will list it. This is by far the most important attribute. Take for example token memes: I personally don’t understand them, but if they are used by a lot of users then we will support them. will of the community, my opinion doesn’t matter. “
In fact, in a June post published on the official Binance blog, Zhao wrote:
“If it has a large number of users, your product has value. This is a simple metric to measure. We recommend that you include statistics on the number of users in the application form, it will help a lot during the evaluation process.”
According to Sergei Khitrov, founder of the Listing.Help platform, large exchanges such as Binance do not need to list smaller tokens, as they mainly earn from high trading volumes rather than through individual listings:
“This is one of the main problems that many projects don’t understand, they should start with building a community. And that doesn’t mean 500 or 10,000 people in a channel on Telegram, but a much wider audience.”
Khitrov also has Recommended for token creators to start with smaller exchanges.
Binance currently supports a total of 346 cryptocurrencies: from major assets like Bitcoin (BTC) and Ether (ETH) to popular meme-tokens like Dogecoin (DOGE) and Shiba Inu (SHIB). Binance manages a daily transaction volume of $ 28 billion.
By comparison OKEx, the second-largest cryptocurrency exchange by trading volume, supports 312 coins and processes $ 7 billion in trades per day. Coinbase, the largest exchange in the United States, only supports 123 tokens with a trading volume of $ 6 billion.
Some centralized exchanges (CEX) support many more assets than Binance: on Bittrex, for example, you can find over 450 cryptocurrencies.
Unlike a CEX, no special requirements are usually required to list a token on a decentralized exchange (DEX). PancakeSwap, a Binance Smart Chain-based DEX, supports more than 3,200 tokens for example. Uniswap, an Ethereum-based rival, allows trading of around 1,800 cryptocurrencies.
Last month PancakeSwap listed the Squid Game (SQUID) token, a fraudulent cryptocurrency inspired by the homonymous series on Netflix. The price of the token grew 45,000% in just a few days, before users realized that … the asset could not be sold!