In an interview with financial magazine Forbes, Binance CEO Changpeng Zhao recently disclosed the most important criteria his platform uses to list a new cryptocurrency.
One of the first criteria that Binance relies on to judge whether a cryptocurrency can be listed on the platform is the number of users.
But there are also many other factors that can influence the listing.
One of the criteria considered very important is the number of active addresses on the blockchain, then followers on social media and code commits. However, the number of users remains the key parameter:
“If a coin has a large number of users, then we will list it. That’s the overwhelming significant attribute. Consider for example meme tokens, even though I personally don’t get it, if it’s used by a large number of users we list it. We go by the community, my opinion doesn’t matter”.
In June, on the company blog, CZ wrote a rather clear post on the subject:
“If you have a large number of users, your product has value. That’s the easiest to measure. Do include the user statistics in the application form. It will help significantly”.
According to Sergei Khitrov, founder of the Listing.Help platform, large exchanges like Binance do not need to find new tokens to list, but rather have to make a precise choice among all those who apply to be present on the world’s largest exchange.
“This is one of the main problems that many projects do not understand. They should start with building a community. And that means not 500 or 10,000 people in a Telegram channel, but a much larger audience”.
A total of 346 cryptocurrencies are currently listed on the platform: from queens like Bitcoin, Ethereum, Litecoin, Tether to of course its own native token BNB, which is currently the third most capitalized cryptocurrency.
But there is also no shortage of meme coins such as Dogecoin and Shiba, which have also performed incredibly well thanks to their listing on Binance.
Binance currently handles a daily transaction volume of around $28 billion. But other exchanges support many more cryptocurrencies, such as Bittrex, which lists over 450 tokens on its platform, not to mention the DeFi exchanges, which can list up to 3 or 4,000 tokens.
Being listed on Binance has become like a graduation exam, a sort of watershed for a cryptocurrency to measure its true growth and potential for future growth in the cryptocurrency world.
The post Binance explains the key factors for listing a cryptocurrency appeared first on The Cryptonomist.
