The CEO of Binance, the world’s largest cryptocurrency exchange by volume, revealed some information on how to access the trading platform.
CEO Changpeng Zhao, also known as CZ, told Forbes on Monday that the most important criterion for listing a cryptocurrency on Binance is the number of users.
CZ went on to say that there are many other factors, such as the number of active addresses on the blockchain, the audience on social media and the number of committed code. However, he said the number of users is a “key value”, adding:
“If a coin has a large number of users, we will list it. This is a very important feature. Think, for example, of meme tokens, although I personally do not understand them, but if they are used by a large number of users, lists we’re them up. We’re a paid community, my opinion does not matter. ”
According to Binance CEO’s advice regarding listing, the number of users is just one of many factors that affect the token listing on the cryptocurrency exchange. «If you have many users, your product has value. This is the simplest measure. Include user statistics on the order form, “the CEO said in a statement regarding Binance listings:” It will help tremendously. ”
According to Sergey Khitrov, founder of the listing platform that focuses on crypto listings, large crypto exchanges like Binance do not need to list secondary tokens because they primarily profit on trading volumes, not listings.
“This is one of the main problems that many projects do not understand. They have to start building a community. It does not mean 500 or 10,000 people in a Telegram channel, it means a much larger audience,” Khitrov told the Cointelegraph. it would be advisable for token creators to start with small exchanges.
According to CoinGecko data. Binance’s daily trading volume is estimated at $ 28 billion.
In comparison, OKEx, the second largest cryptocurrency exchange by trading volume, has placed 312 coins and has a trading volume of around $ 7 billion. The US crypto exchange Coinbase only supports 123 tokens with a daily trading volume of around $ 6 billion.
Few large centralized exchanges (CEX) show more tokens than Binance, with Bittrex showing over 450 cryptocurrencies at the time of writing.
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Unlike CEX, decentralized exchanges (DEX) are the largest platforms in the world by the number of cryptocurrencies listed, with DEXs such as PancakeSwap not requiring you to go public or ask for permission. As such, PancakeSwap, DEX that runs on Binance Smart Chain, has over 3200 tokens listed, while Uniswap shows over 1800 cryptocurrencies.
Last month, PancakeSwap listed the Squid Game Code (SQUID), a cryptocurrency scam inspired by the Netflix show of the same name, which grew over 45,000% in just a few days after launch. The token was listed on Binance’s cryptocurrency website CoinMarketCap, while competitors such as CoinGecko withdrew from the SQUID listing due to “this is probably a scam.”