The CEO of Binance, the world’s largest cryptocurrency exchange by volume, has revealed information on how to trade on the trading platform.
The most important criteria for listing a cryptocurrency on Binance is the number of users, CEO Changpeng Zhao said in a Forbes interview on November 29.
CZ went on to say that there are many other factors, such as the number of active addresses on the blockchain, the social media audience, and the confirmed code. However, the number of users is “the key metric,” he said:
“If a coin has a large number of users, we will list it. That is the overwhelming significant attribute. Consider, for example, meme tokens, although I personally do not understand them, if they are used by a large number of users, we list them. We go for the community, my opinion does not matter ”.
According to the Binance list advice According to its CEO, the number of users is just one of many factors for listing a token on the crypto exchange. “If you have a large number of users, your product has value. That is the easiest to measure. Include user statistics in request form. It will help significantly, ”reads the CEO’s statement on Binance’s listings.
According to Sergei Khitrov, founder of the cryptocurrency listing-focused platform Listing.Help, major cryptocurrency exchanges like Binance do not need to list minor tokens as they primarily earn from trading volumes rather than listings.
“This is one of the main problems that many projects do not understand. They should start by building a community. And that means there are not 500 or 10,000 people on a Telegram channel, but a much larger audience, ”Khitrov told Cointelegraph. He added that token creators are advised to start with smaller exchanges.
At the time of writing, the Binance Exchange supports a total of 346 cryptocurrencies, including major cryptocurrencies such as Bitcoin (BTC) and Ether (ETH), as well as popular meme tokens such as Dogecoin (DOGE) and Shiba Inu (SHIB), according data from CoinGecko. Binance’s daily trading volume is estimated at $ 28 billion.
By comparison, OKEx, the second-largest cryptocurrency exchange by trading volume, has listed 312 coins and has a trading volume of approximately $ 7 billion. Coinbase, the US-based cryptocurrency exchange props only 123 tokens with a daily trade volume of around $ 6 billion.
Some major centralized exchanges (CEX) have more tokens listed than Binance, with Bittrex list more than 450 cryptocurrencies at the time of writing this article.
Related: Kraken Exchange Defies Competition Regulatory Concerns with SHIB Listing
Unlike a CEX, decentralized exchanges (DEX) are the largest platforms in the world in terms of the number of cryptocurrencies listed as DEX. PancakeSwap you don’t need to contact an exchange or ask for permission. As such, PancakeSwap, a DEX running on Binance Smart Chain, is over 3,200 listed tokens, while Uniswap liza more than 1,800 cryptocurrencies.
Last month, PancakeSwap listed the Squid Game (SQUID) token, a cryptocurrency scam inspired by Netflix’s eponymous show, which posted growth of more than 45,000% in a few days after launch. The token is listed on Binance-owned cryptocurrency website CoinMarketCap, while competitors such as CoinGecko backed off the SQUID listing on the “most likely scam” basis.