The Binance co-founder Yi He discussed listing criteria issues after Test token prices soared and plummeted. Binance listings have brought back discussions about their selection methods since retail investors heavily depend on CEXs for their crypto trades.
Trading platforms draw investor interest to these tokens when they list them for trading.During his interview with Colin Wu, published on February 10, Yi explained Binance’s main factors for accepting tokens onto its platform.
Binance assesses ROI by comparing token prices on its launch day with its performance over three months on other CEXs. This process checks if the listed token will keep its value over time instead of just being a popular momentary trend.
A project needs to deliver new breakthroughs to attract users to get included on Binance. Binance selects tokens based on their potential to make temporary investors into engaged blockchain users in the long term.
Binance Tracks Popular Tokens To Maintain Market Position
Binance tracks market activity of well-known projects that trade across different exchanges. When Binance fails to list a popular token with technological strengths and market momentum it faces decreased market position.
Yi He summarized that these specificity criteria let Binance list tokens of various kinds including popular investment tokens and long-term projects plus short-lived memecoins causing market excitement.
In response to CZ’s admission about listing flaws Yi He shared her perspective.The trading platform Binance sees DEX users perform asset buying and selling before CEX listings because these users cause high sell orders when CEX adds tokens.
DEX traders spot potential cryptocurrency investments first and acquire them at lower values until they promote listings where the tokens can sell for high profits. Through its official statements CZ indicates that these pre-listing selling practices harm token performance.
Binance has been under constant examination because its employees broke trading rules and violated company regulations. Yi He explained that Binance terminated 60 employees through 120 internal investigations done to handle misconduct reports.
He confirmed that most wrongdoing on Binance did not involve illegal insider trading. Instead, Binance discovered cases involving:
Bribery attempts within the company.Employees redirecting company wallet addresses to personal accounts.The company has enforced punishments through legal actions then sent reports to both national and international law enforcement for proper regulations.
The TST token incident made Binance users doubt how transparently the company lists new tokens. TST emerged only as a part of a BNB Chain tutorial program before the public recognized it. A single second of Binance tutorial video appearance on the Four.Meme platform sparked overwhelming market anticipation.
The video leak on February 9th made TST hit $489 million in market value because many Chinese influencer accounts and social media users endorsed and promoted the token. After its rapid growth the token dropped more than half its value and stopped at $192 million based on CoinMarketCap records.
CZ tried to explain that the video did not support TST but investors already caused the token price to jump sharply. The event showcases how social media speculation about cheaply available tokens led to investment risks.
https://twitter.com/Lamaxbt/status/1887468645250461989
Under official examination, Binance needs to clarify its processes and improve its internal security tools. Despite remaining the top crypto platform globally, Binance must deal with how crypto and token valuations surprise investors without proper safeguards.
https://twitter.com/cz_binance/status/1887477388335833594
Retail traders should practice safety when trading new tokens because their market gains usually reverse quickly. Binance keeps developing its token listing methods to defend its market position and deal with government rules and investor feedback.
