Binance co-founder He Yi addressed front-running accusations and clarified the trade’s funding and itemizing requirements in a current interview.
Entrance-running is a technique in monetary markets the place an agent, dealer, or different market participant takes motion for his personal profit by profiting from private data or pending orders.
He Yi defined that sure tokens is not going to be listed on Binance if they’re broadly hyped and anticipated to be listed on an trade. “Some tasks unfold rumors that they are going to be listed even earlier than we contact them, and a few individuals use these rumors to use strain,” he stated, including that “if we select to not checklist these tasks, we may very well be accused of front-running.”
In keeping with He Yi, Binance has strict requirements and processes earlier than itemizing. They scan tasks and conduct inside evaluations each cycle. If somebody vehemently opposes a undertaking, the undertaking doesn’t go scrutiny. The itemizing resolution isn’t made by a single individual, however by means of a multi-layered analysis course of that ensures the undertaking’s technical foundation, market potential and funding help.
In keeping with the founder, Binance’s itemizing requirements mainly embody the next factors:
- Technical and Market Foundation: Does the undertaking have a stable technical foundation and market potential?
- Recognition and Curiosity: What’s the market temperature and consumer curiosity of the undertaking?
- Funding Assist: Does the undertaking have dependable funding help to make sure it is not going to fade away simply?
- Undertaking Life Cycle: Is the life cycle of the undertaking lengthy sufficient and does it have sustainable improvement potential?
All tasks that meet these standards are pooled for remark and analysis.
Yi additionally touched on the challenges customers face concerning their psychological expectations. Whereas many cryptocurrency customers count on 100x or 1000x returns, conventional traders are content material with 20%-30% annual returns. As competitors will increase, excessive return alternatives change into rarer. “We want customers to grasp the evolution and alter of the trade and alter their expectations,” he stated.
Concerning itemizing choices, He Yi additionally acknowledged that it doesn’t matter what undertaking they checklist, there’ll all the time be dissatisfied customers. “We intention to supply widespread and comparatively dependable tasks which might be in demand out there, however this doesn’t imply that the worth of all tasks will enhance,” he stated. “We additionally hope that customers perceive the fluctuations and cycles out there.”
Concerning curiosity alignment and regulatory points, He Yi defined that Binance’s funding in most cash may be very restricted, typically holding solely 0.1%. Subsequently, in accordance with the founder, assuming that Binance has pursuits within the listed cash requires important proof.
*This isn’t funding recommendation.
