New Binance Initiative Aims to Support Small and Medium Crypto Projects

On May 20, Binance announced its invitation to small and medium-sized projects to apply for its listing programs.

The exchange emphasized its commitment to supporting projects that demonstrate strong fundamentals, organic community support, and sustainable business models.

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This initiative by Binance aims to tackle the issue of crypto projects launching with high market capitalizations and retaining a large portion of their token supply for future release.

This practice, highlighted by Binance Research on May 17, often results in low initial circulating supplies, which, due to limited liquidity, leads to rapid price increases during bullish market conditions.

Binance commented on this approach:

It is apparent that this kind of price growth is unsustainable when a wave of token supply hits the market upon unlocking.

Binance projected that around $155 billion in tokens will be unlocked between 2024 and 2030. The exchange expressed concerns that the influx of unlocked tokens could strain the market unless there is a corresponding increase in demand and capital flows.

By encouraging small and medium projects to apply for its listing programs, Binance aims to mitigate the adverse effects of this trend. The crypto exchange believes that supporting projects with sustainable and responsible business practices will contribute to the long-term health and stability of the crypto market.

In other news related to Binance, its CEO has recently revealed that Nigerian officials attempted to orchestrate a secret crypto settlement to resolve allegations against the exchange.