The CEO of Binance, the world’s largest cryptocurrency exchange by volume, revealed some information about how to enter the trading platform.
CEO Changpeng Zhao told Forbes on November 29 that the most important criterion for a cryptocurrency listing 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 code confirmations. However, the number of users is a “core value,” he said:
“If the coin has a large number of users, we will include it. This is a very important feature. Think, for example, about meme tokens, although I personally do not understand them, but if they are used by a large number of users, We list “We are socially driven, my opinion doesn’t matter.”
According to the list of the CEO of Binance, the number of users is just one of the many factors affecting the list of tokens on the crypto exchange. “If you have many users, your product has value. This is the easiest measurement. Include user statistics on the order form. It will help tremendously,” the CEO said in a statement regarding the Binance listings.
According to Sergei Khitrov, founder of the listing platform that focuses on crypto listings, large crypto exchanges like Binance do not need to list smaller coins because they primarily gain from trading volumes, not listings.
“This is one of the main issues that many projects do not understand,” Khitrov told Cointelegraph. “You have to start building a community. This means that the Telegram channel will not have 500 or 10,000 people, but there will be a much larger audience.” He added that it would be advisable for token creators to start with small exchanges.
At the time of writing, the Binance platform supports a total of 346 cryptocurrencies, including major cryptocurrencies such as Bitcoin (BTC) and Ether (ETH), as well as popular tokens such as Dogecoin (DOGE) and Shiba Inu (SHIB), According to the data. From CoinGecko. Binance’s daily trading volume is estimated at $28 billion.
In comparison, OKEx, the second largest cryptocurrency exchange by trading volume, has 312 coins listed and a trading volume of about $7 billion. The US crypto exchange Coinbase only supports 123 tokens with a daily trading volume of about $6 billion.
Some large central exchanges (CEX) offer more tokens than Binance, with Bittrex offering 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 number of cryptocurrencies listed, as DEXs like PancakeSwap do not need to contact the exchange or request permission. As such, PancakeSwap, a DEX running on the Binance Smart Chain, has over 3,200 tokens listed, while Uniswap offers over 1,800 cryptocurrencies.
Last month, PancakeSwap listed Squid Game Token (SQUID), a cryptocurrency scam inspired by the Netflix show of the same name, which has grown by over 45,000% in the few days since the 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 likely a scam.”