The recent rise and fall of the Test (TST) token, which briefly hit a $500 million market value, has raised questions about how Binance
In a February 10 Ask Me Anything (AMA), Binance co-founder Yi He explained the key factors that influence their listing decisions to address these concerns.
Many investors use centralized exchanges (CEXs) like Binance and Coinbase
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This can create sudden price drops once the token appears on a large exchange, as early buyers sell for quick profits.
Yi He outlined three main criteria Binance considers when adding new tokens. First, the exchange looks at how profitable a token is for investors, comparing its initial price to its longer-term performance.
Second, Binance prioritizes projects that bring innovation and attract new users who may continue using blockchain technology. Finally, the company considers tokens that generate strong market interest and are already performing well on other exchanges.
Additionally, Yi He stated:
If a token with strong technology and market demand isn’t listed on Binance, we risk losing market share.
She also noted that Binance’s selection process includes a variety of tokens, from venture capital-backed projects to long-term investments and even meme coins.
Meanwhile, Brian Armstrong, Coinbase's CEO, recently called for changes to how his crypto trading platform manages token listings. What did he suggest? Read the full story.
