The CEO of Binance, the world’s largest cryptocurrency exchange by volume, has revealed some information on how it will be listed on the trading platform.
Changpeng Zhao, also known as “CZ,” said in an interview with 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 commitment to the code. However, he said the number of users is a “key value,” adding:
“If the coin has many users, we will list them. This is an overwhelming feature. Think for example of meme tokens, although I personally don’t get them, if they are used by a large number of users, we include them “We go through society, my opinion does not matter.”
According to the advice of the CEO of Binance List, the number of users is just one of many factors for listing a token on a cryptocurrency exchange. “If you have many users, your product has value. This is the simplest measure. Include user statistics in the order form. It will help a lot, ”the CEO said in a statement on Binance Listings.
According to Sergey Khitrov, the founder of List of Platforms specializes in cryptocurrency listings. Help, large cryptocurrency exchanges like Binance don’t need to list smaller coins as they mostly make money from trading volumes, not listings.
“This is one of the main problems that many projects do not understand. They need to start building a community. This does not mean 500 or 10,000 people on the Telegram channel, it means a much larger audience, ”Khitrov told Cointelegraph. He added that he recommends the two creators start with small exchanges.
According to Data from CoinGecko. Binance has an estimated daily trading volume of $ 28 billion.
By comparison, OKEx, the second largest cryptocurrency exchange by trading volume, has 312 coins and a trading volume of around $ 7 billion. The US cryptocurrency exchange only supports 123 tokens with a daily trading volume of around $ 6 billion.
Few of the major Centralized Exchanges (CEX) have more tokens than Binance, with Bittrex holding over 450 cryptocurrencies at the time of writing.
RELATED: Kraken Exchange Challenges Competitors Regulatory Concerns About SHIB Listing
Unlike CEX, Decentralized Exchanges (DEX) are the largest platforms in the world in terms of the number of cryptocurrencies listed, since DEXs like PancakeSwap do not require an exchange connection or authorization request. As such, PancakeSwap, a DEX powered by Binance Smart Chain, has over 3,200 tokens, and Uniswap shows over 1,800 cryptocurrencies.
Last month, PancakeSwap listed the Squid Game Code (SQUID), a cryptocurrency scam inspired by the Netflix program of the same name, which grew over 45,000% in a few days after launch. The token was listed on Binance’s CoinMarketCap crypto site, while competitors such as CoinGecko have withdrawn the SQUID listing because it is “likely a scam.”