In a bold move aimed at restoring its image, Binance has announced a major tightening of its listing criteria. This decision comes after a particularly trying year 2023 for the crypto exchange platform. Indeed, Binance has had to face heavy regulatory proceedings and significant internal turmoil. Now the company appears determined to regain lost trust by drastically strengthening investor protections.
One year of listing, Binance’s new essential standard
Among the most notable changes, Binance has significantly extended the listing period required for new tokens. Previously, this period during which cryptos were locked could not exceed six months. However, the platform now requires a minimum of one year before tokens can be gradually released. This draconian measure aims to discourage unscrupulous crypto projects involved in “rug pulling” schemes. Indeed, such scams, where developers walk away with the funds after the token sale, have caused huge losses to crypto investors in recent years.
Therefore, by imposing a long downtime period, Binance intends to ensure real and lasting commitment from the development teams. In addition, this requirement will allow better visibility on the long-term viability of the projects listed. However, the move could deter some startups looking for quick cash. But for the platform, the price to pay seems reasonable to restore the credibility of its trading environment.
More guarantees for crypto market makers
parallel to the extension of the listing period, Binance is also changing the allocations given to crypto market makers. Indeed, these crucial players for market liquidity will now receive a larger share of tradable tokens upon launch. This pragmatic measure aims to ensure sufficient market depth to ensure smooth transactions. However, some fear that this new provision will excessively benefit these large investors to the detriment of ordinary holders.
Despite these concerns, Binance emphasizes that these changes are essential to restoring trust in the long term. A company spokesperson insisted that their top priority is protecting crypto investors and cleaning up their ecosystem. As a result, the platform makes no secret of its desire to learn lessons from past scandals. By drastically tightening its barriers to entry, Binance hopes to filter out bad actors to leave room only for the most solid and transparent projects.
After a tumultuous 2023, Binance intends to start again on a healthier basis by drastically tightening its criteria for new crypto projects. Although radical, these measures illustrate his desire to restore shaken confidence. It remains to convince investors and regulators of its renewed seriousness. But the saga is far from over for the platform.
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