Binance explains the key factors for listing a cryptocurrency
Binance explains the key factors for listing a cryptocurrency
Crypto

Binance explains the key factors for listing a cryptocurrency

By Vincenzo Cacioppoli - 30 Nov 2021

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In an interview with financial magazine Forbes, Binance CEO Changpeng Zhao recently disclosed the most important criteria his platform uses to list a new cryptocurrency.

One of the first criteria that Binance relies on to judge whether a cryptocurrency can be listed on the platform is the number of users. 

But there are also many other factors that can influence the listing.

One of the criteria considered very important is the number of active addresses on the blockchain, then followers on social media and code commits. However, the number of users remains the key parameter:

“If a coin has a large number of users, then we will list it. That’s the overwhelming significant attribute. Consider for example meme tokens, even though I personally don’t get it, if it’s used by a large number of users we list it. We go by the community, my opinion doesn’t matter”.

In June, on the company blog, CZ wrote a rather clear post on the subject:

“If you have a large number of users, your product has value. That’s the easiest to measure. Do include the user statistics in the application form. It will help significantly”.

According to Sergei Khitrov, founder of the Listing.Help platform, large exchanges like Binance do not need to find new tokens to list, but rather have to make a precise choice among all those who apply to be present on the world’s largest exchange.

“This is one of the main problems that many projects do not understand. They should start with building a community. And that means not 500 or 10,000 people in a Telegram channel, but a much larger audience”.

A total of 346 cryptocurrencies are currently listed on the platform: from queens like Bitcoin, Ethereum, Litecoin, Tether to of course its own native token BNB, which is currently the third most capitalized cryptocurrency. 

But there is also no shortage of meme coins such as Dogecoin and Shiba, which have also performed incredibly well thanks to their listing on Binance. 

Binance currently handles a daily transaction volume of around $28 billion. But other exchanges support many more cryptocurrencies, such as Bittrex, which lists over 450 tokens on its platform, not to mention the DeFi exchanges, which can list up to 3 or 4,000 tokens.

Being listed on Binance has become like a graduation exam, a sort of watershed for a cryptocurrency to measure its true growth and potential for future growth in the cryptocurrency world.

Vincenzo Cacioppoli

Vincenzo was born in Genova but lived most of his life in Milan. He has a degree in political science. He is a journalist, blogger, writer, and marketing and digital advertising expert. After a long experience in traditional marketing, he started working with the web and digital advertising in 2011, creating a company called Le enfants. Passionate about the web and innovation, in 2018 he started exploring the topics related to blockchain technology and cryptocurrencies. Independent cryptocurrency trader since March 2018, he now collaborates with companies in the sector as a content marketing specialist. In his blog. mediateccando.blogspot.com, he has long been primarily focused on blockchain, which he considers to be the greatest technological innovation after the Internet. His first book about blockchain and fintech is scheduled for release in November.

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