The CEO of Binance, the world’s largest cryptocurrency exchange by volume, has leaked some information on how to register on the trading platform.
The most important criteria for listing a cryptocurrency on Binance is the number of users, CEO Changpeng Zhao said in an interview with Forbes on November 29.
CZ went on to say that there are many other factors such as the number of active addresses on the blockchain, social media audience, and code validations. However, the number of users is “the key metric,” he said:
“If a part has a large number of users, we’ll list it. This is the overwhelming significant attribute. Consider for example meme tokens, although I personally don’t understand them, if they are used by a large number of users, we list them. We go through the community, my opinion doesn’t matter.
According to Binance’s listing advice from its CEO, the number of users is just one of many factors in listing a token on the crypto exchange. “If you have a large number of users, your product is valuable. It is the easiest to measure. Include user statistics in the application form. This will help considerably, ”the CEO’s statement on Binance Lists reads.
According to Sergei Khitrov, founder of the Listing.Help platform focused on cryptocurrency listings, major cryptocurrency exchanges like Binance don’t need to list minor tokens because they mostly earn trading volumes instead. only lists.
“This is one of the main issues that many projects don’t understand. They should start by building a community. And that doesn’t mean 500 or 10,000 people on a Telegram channel, but a much larger audience, ”Khitrov told Cointelegraph. He added that it is recommended that token creators start from smaller exchanges.
At the time of writing, Binance Exchange supports a total of 346 cryptocurrencies, including major cryptocurrencies like Bitcoin (BTC) and Ether (ETH), as well as popular meme tokens like Dogecoin (DOGE ) and Shiba Inu (SHIB), according to the data. by CoinGecko. Binance’s daily trading volume is estimated at $ 28 billion.
By comparison, OKEx, the second largest crypto exchange in terms of trading volumes, listed 312 coins and has a trading volume of around $ 7 billion. The US-based crypto exchange Coinbase only supports 123 tokens with a daily transaction volume of around $ 6 billion.
Some large centralized exchanges (CEX) have more tokens listed than Binance, with Bittrex listing over 450 cryptocurrencies at the time of writing.
Related: Kraken Exchange Defies Competitor Regulatory Concerns With SHIB List
Unlike a CEX, Decentralized Exchanges (DEX) are the largest platforms in the world in terms of the number of cryptocurrencies listed, as DEXs like PancakeSwap do not require contacting an exchange or requesting authorization. As such, PancakeSwap, a DEX running on the Binance Smart Chain, has over 3,200 tokens listed, while Uniswap lists over 1,800 cryptocurrencies.
Last month, PancakeSwap listed the Squid Game (SQUID) token, a cryptocurrency scam inspired by the eponymous Netflix show that has grown by over 45,000% within days of launch. The token is listed on Binance-owned crypto website CoinMarketCap, while competitors like CoinGecko have removed themselves from the SQUID list due to being “most likely a scam.”