- In a recent interview, Binance co-founder He Yi addressed allegations of front-running and clarified the investment and listing standards at the exchange.
- The term ‘front-running’ refers to a practice in financial markets where an intermediary, trader, or other market participant uses non-public information to make trades for their own benefit.
- He Yi stated that if certain tokens are hyped up significantly before they are listed, they will not be added to Binance’s platform. “Some projects spread rumors about being listed even before we get in touch with them, and some people use these rumors to apply pressure,” she explained. “If we choose not to list these projects, we could be accused of front-running.”
Explore Binance’s strict listing standards and how front-running allegations are tackled by the exchange’s co-founder, He Yi.
Understanding Binance’s Stringent Listing Criteria
He Yi emphasized that Binance follows rigorous standards and processes before listing any token. During each cycle, projects undergo a thorough screening and internal review. If a team member strongly opposes a project, it does not pass the review. The listing decision is not made by a single individual but through a multi-layered evaluation process that considers the project’s technical foundation, market potential, and investment backing.
The Key Points of Binance’s Listing Standards
Binance’s listing criteria are primarily based on several key factors:
- Technical and Market Fundamentals: Does the project have a solid technical base and market potential?
- Popularity and Interest: What is the market buzz and user interest around the project?
- Investment Support: Does the project have reliable investment backing to ensure its sustainability?
- Project Lifecycle: Is the project lifecycle long enough, and does it have the potential for sustainable development?
Projects meeting these criteria are placed into a pool for observation and evaluation.
Challenges with User Expectations
Yi also highlighted the challenges Binance faces with users’ psychological expectations. Many cryptocurrency users expect returns of 100x or 1000x, whereas traditional investors are satisfied with annual returns of 20%-30%. As competition intensifies, high return opportunities become rarer. “We need users to understand the development and evolution of the industry and adjust their expectations accordingly,” she said.
Responding to Market Demands
On the topic of listing choices, He Yi acknowledged that there will always be dissatisfied users regardless of which projects are listed. “We aim to offer projects that are in demand, popular, and relatively reliable, but that doesn’t mean the value of all these projects will increase,” she commented, adding, “We also hope users understand the market cycles and fluctuations.”
Conclusion
In summary, Binance adheres to strict listing standards to ensure the reliability and sustainability of its platform. By maintaining high criteria for technical and market fundamentals, popularity, investment support, and project lifecycle, Binance aims to list projects with genuine potential. Users are encouraged to temper their expectations and understand market dynamics as the cryptocurrency industry evolves.
