Binance, one of the leading cryptocurrency exchanges, has announced a new project applicant plan for crypto listings, with a focus on prioritizing “high-quality” projects. The exchange acknowledged a concerning trend of tokens being issued with high valuations and low initial floats, which has raised alarms in the community.
In response to these concerns, Binance has committed to only allowing “serious projects” on its token listings, aiming to create a healthy and sustainable market that prioritizes users’ interests over companies seeking liquidity. The exchange’s megadrop platform and Launchpad are designed to support aspiring projects and early adopters of web3 projects, respectively.
Binance has criticized airdrops with diluted valuations and low generation models, which create pressure on potential investors and loyal project members. The exchange has pledged to reshape this trend and reduce market risk by supporting small and medium-sized crypto projects.
Researchers have noted that over 80% of tokens listed on Binance have lost value in the last six months, with only a few exceptions such as meme coins like ORDI, Jupiter (JUP), Dogwifhat (WIF), Jito (JTO), and Memecoin (MEME). These projects have seen price increases despite lacking significant venture capital backing.
Overall, Binance’s new approach to token listings aims to favor serious projects and address market concerns, ultimately providing value to users while safeguarding their interests. The exchange’s commitment to supporting small and medium-sized companies, businesses, and products, as well as foundations and regulation compliance, reflects its dedication to creating a more sustainable and transparent cryptocurrency market.
