ββπ€ Listing on Binance = project quality indicator?
Large crypto exchanges have taught users that if they list a project, it means that it has been thoroughly checked by exchange analysts and has a minimum of risks.
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Some traders still buy any tokens that Coinbase or Binance plans to list. This can be seen by the growth of the token after the announcement of the listing.
Has anything changed since then?
Both yes and no β it all depends on the specific project. In 2020, during the DeFi boom, the Binance crypto exchange added an innovative trading zone.
The Innovation Zone is a separate list of tokens that have not passed the test of time and have higher risks. Often, there are DeFi tokens that are initially available only on DEX and have high volatility. Some of them are managed by an anonymous team.
π¬ Why is this zone needed?
The main reason is to make Binance more competitive by scrolling through popular DeFi projects in the community. There is nothing wrong with this, because once Bitcoin and Ethereum were also new cryptocurrencies with unclear prospects.
If people want to buy a high-risk token, they will do it anyway, but they will have to use complex decentralized exchanges (DEX), which create additional risks.
The innovative trading zone on Binance is needed in order to give users a safe environment for trading, and not the most secure tokens. Do not forget to check which trading zone the token belongs to. For example, Terra 2.0 (LUNA) will be traded on Binance in the innovation zone.
This is another reminder that you need to conduct your own project research. If you lose money, it will not be the exchange's fault.
There are even more risks on decentralized exchanges (DEX), because they are full of fraudulent tokens.
And what tokens or coins did you buy?
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