The CEO of Binance elaborated on several matters in this interview including the importance of a number of users for a token listing, indicating liquidity.
Importance of Liquidity Highlighted
The CEO of Binance, Changpeng Zhao, usually referred to as CZ, revealed an important detail about token listing on the world’s largest exchange.
In the interview with Steven Ehrlich of Forbes on Nov. 29, CZ discussed a variety of topics ranging from Binance’s strategy to acquire retail customers which lead Coinbase to make a shift in their model, token listing metrics, the Evergrande Crisis, Binance’s core business model, and regulations. CZ mentioned that the important criteria for a token to be listed are the number of users.
“Consider for example meme tokens, even though I personally don’t get it, if it’s used by a large number of users we list it. We go by the community, my opinion doesn’t matter. There are other factors, such as the number of active addresses on the blockchain, Twitter followers, Telegram, group sizes, code commits. But number of users is the key metric,” revealed CZ.
Almost as a coincidental addition to the statements made in the interview, CZ went on to tweet on Nov. 30:
“If I sell 0.01% of the company equity to someone for $1 dollar, then the company is worth $10,000. If I issue a coin with a 1T supply and sell 1 of them to someone for $1 dollar, then I have a $1 trillion dollar coin. Valuations without liquidity doesn’t mean much.”
“Liquidity matters. Protocol matters. Provenance matters. Path matters. Politics matters. Decentralization matters,” added Michael Saylor, the CEO of MicroStrategy, in response to CZ’s tweet.
As previously reported by BSC News, Binance.US officially confirmed the compatibility of 26 large-cap BEP-20 tokens on the platform. BEP-20 is the token standard of the Binance Smart Chain (BSC) network.Find more about Binance here:
Source : bsc.news
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