Article reprinted from: Odaily Planet Daily
Original | Odaily Planet Daily ( @OdailyChina )
Author | Fu Ru He ( @vincent31515173 )
Today, the Binance Chinese community officially introduced the new features of the Binance Web3 Wallet - Binance Alpha during the Space event.
During this event, Binance co-founder He Yi and Winson, the head of Binance Wallet business, appeared together to answer questions from users regarding the new features and conducted an in-depth analysis of the latest industry trends. This Space invited several Chinese media and well-known KOLs from Web3 to participate in the discussion and posed questions to He Yi and Winson regarding hot topics such as Binance's listing policies.
He Yi shared his views on the current industry situation during the event, responded to recent controversies regarding Binance's listings, and elaborated on the future development plans of the Binance Alpha Zone.
The following is a transcript of the Space, organized and edited by Odaily Planet Daily.
Q: Binance has faced numerous controversies regarding listings in the past year. How do you view this phenomenon? What prompted Binance to launch Binance Alpha? Can you explain the background of this matter and whether the project selection process is the same as that for futures and spot listings?
He Yi: There are indeed higher user expectations for Binance listings; everyone hopes that every listing will rise. However, the actual situation is that after a listing, the market value spikes in the short term and then falls back. This situation compels us to continuously seek optimization solutions, such as suppressing coin prices through pre-market pricing, but the effect is limited.
The entire industry also has some structural issues:
The project issuance cycle is short, lacking real users and solid business models. Many on-chain interaction data are artificially 'washed' out, lacking value support.
The current market heat is more about distributing 'air', and the projects themselves lack labor results and profit models, making it difficult to support long-term development.
The global regulatory environment is complex, and the participation costs and risks for excellent entrepreneurs are high, causing the industry to fall into an awkward period.
The initial intention of launching the Binance Alpha Zone is to provide users with an 'observation zone' that lists popular but not yet mature projects in the market, including hot meme coins, VC-supported projects, local chain projects, etc. Users can trade these coins through the wallet, but their entry into the observation zone does not mean they will eventually be listed on Binance's spot or contract markets. Most meme coins will go to zero in this wave, and only a few memes can survive, which is a harsh reality.
The significance of the Binance Alpha Zone lies in providing users with tools to screen high-probability projects while reminding everyone to participate rationally in new projects and do thorough research. Ultimately, we hope to find projects that truly have social value, can generate productive results, and give back to token holders. Nevertheless, whether in the Binance Alpha Zone, spot, or contract listings, it is an ongoing process of screening and elimination, and there is no guarantee that every coin can survive long-term or make profits for users.
Regarding the market's hot meme coins, we understand their appeal and will include them in the Alpha Zone to provide users with early value capture opportunities. However, the ultimate healthy development of the industry still depends on whether excellent projects can genuinely generate social value and share the results of their labor.
Q: Is there a specific project screening standard for Binance Alpha? Will the projects listed in Binance Alpha potentially be listed on Binance's main board in the future? Will Binance Alpha favor projects in the BNB ecosystem?
He Yi: The project screening for Binance Alpha does not completely rely on whether it will eventually be listed on Binance's main board. The screening criteria focus on the project's popularity and attention rather than just the fact that entering Binance Alpha means it will definitely be listed. In other words, while many projects entering Binance Alpha have high exposure and potential, not all will ultimately be listed, as it depends on more market and internal assessment factors.
As one of the currently popular public chains in the industry, BNB Chain is indeed a key support target for Binance. Due to the strong competitiveness and high attention of the BSC ecosystem in the market, its projects are more likely to be included in Binance Alpha. However, this does not mean that Binance Alpha is limited to the BNB Chain ecosystem; other excellent projects will also be considered.
Q: Industry competitors are investing substantial resources in wallet business (e.g., team sizes of 500-1000 people). What is the current size of the Binance Wallet team? In the face of such strong competitive pressure, does Binance adopt a defensive or offensive strategy?
Winson: Currently, the Binance Wallet team has just reached 100 people, but the team is still continuously expanding, especially in technical positions, and welcomes excellent engineers to join.
Regarding the significant investments and achievements of competitors in the wallet field, the Binance team expressed high respect and actively researches and learns from their strengths. However, Binance will not simply replicate others' models but will explore differentiated development routes.
From the market demand perspective, users do not need two completely identical wallet products, so blind imitation is not feasible. Binance believes that there is enough space in the wallet track to accommodate different differentiated products. Based on years of practice, the team has clarified its development path and is confident about it.
The strategy of Binance Wallet is neither defensive nor purely offensive, but focuses on exploring new paths:
Providing simple, easy-to-use, comprehensive, and secure wallet services based on user needs, addressing most users' on-chain operation demands.
Focusing on user experience, making the user usage process more enjoyable, while providing security and data support.
We acknowledge that Binance started late in on-chain services and spent a lot of time in the past year recruiting excellent talents, rebuilding the wallet team and reconstructing the system from the ground up. Although it is still a 'clean slate', the team has clarified its future plans, aiming to gradually improve functionalities based on meeting user needs.
The CEO mentioned in summary that although Binance started late in the on-chain field, the team's confidence and resource investment are sufficient, just as Binance achieved significant progress in developing contract business in the past, it will also make substantial progress in the future.
Q: What is the long-term development positioning and plan for the new Binance Web3 Wallet? How does it differ from the positioning of Trust Wallet in the Binance ecosystem?
Winson: The positioning of the new Binance Web3 Wallet is 'beginner-friendly', but it is not limited to serving novice users. The team believes that if a product can be very simple for beginners, then experienced users can also easily get started, even if it may be a bit unfamiliar. Therefore, Binance Wallet's goal is to serve long-time users in the industry while focusing on new entrants, dedicated to promoting the large-scale adoption of Web3, especially contributing to the popularity among mainstream user groups.
The team also plans to implement specific improvements in phases to address the key experience challenges users face when using the wallet, ultimately achieving the removal of all barriers, allowing users to use Web3 products without any thresholds.
The difference from Trust Wallet:
Platform integration:
Binance Wallet is deeply integrated with Binance's main site, belonging to the same app, while Trust Wallet is a relatively independent product.
Compliance:
Binance Wallet is designed based on KYC (Know Your Customer) requirements and complies with regulatory requirements, while Trust Wallet is a more independent product and does not have in-depth compliance integration with Binance's main site.
User groups:
Binance Wallet serves a relatively broad user group, including existing Binance users and new Web3 users, while Trust Wallet focuses on providing an independent wallet experience aimed at a broader decentralized user base.
Although there is some competition between Binance Wallet and Trust Wallet at this stage, this is not a life-and-death competition within Binance, but rather a 'differentiated competition' aimed at providing differentiated services for different user groups and promoting the popularity of Web3. The team stated that such competition will help the development of the entire industry, and Binance Wallet's goal is to help more people smoothly enter the Web3 field and simplify the user experience.
Q: Are the projects in the Alpha section launched by Binance itself selected, or are they selected through other means, such as community voting or open registration? If a project successfully 'graduates' and is listed on Binance's main board, what will be the scope of assessment for the main board? How to avoid inflated numbers and fabricated data issues?
He Yi: The project screening for Binance Alpha includes both active screening and active registration or community recommendations from external sources. Binance's screening not only relies on industry popularity but also conducts detailed research and analysis, covering multiple areas such as public chains, infrastructure, DeFi, NFTs, etc. These screening contents combine on-chain data tracking and daily submission information from projects. Therefore, projects may enter Alpha through registration and community recommendations, but whether they are ultimately selected depends on their popularity and market performance; the Alpha section is actually a relatively broad pool.
For those projects that successfully 'graduate' and have the opportunity to be listed on the main board, the assessment criteria will cover multiple aspects. These mainly include the quality of the project, compliance, development potential, etc., ensuring that the project not only has popularity but also possesses long-term development capabilities. To avoid inflated numbers and fabricated data, Binance will strictly review the authenticity of projects during the screening process, including the source of data and trading behavior, ensuring compliance with the platform's requirements and maintaining market fairness. Binance is also exploring whether to introduce more interesting gameplay in the Alpha section and welcomes the community to provide innovative ideas or feedback.
Inflated numbers and fabricated data are difficult to completely avoid in the industry, especially as some projects use airdrops or volume-boosting tools to increase their popularity. Binance believes the key is to continually assess value judgments and industry experience to identify which data is real and which is inflated.
Binance uses the Alpha section as a screening mechanism, allowing projects to first showcase and accumulate data, observing which projects can continuously attract users and create value, and which are merely inflating numbers. This is the core purpose of Binance launching the Alpha section, aimed at screening out truly potential projects.
Q: How does the airdrop platform section in the Binance Web3 Wallet screen airdrop projects? Can early participation in airdrops yield more benefits?
He Yi: Airdrops are a tool provided by Binance for project parties and users, mainly aimed at attracting users for project parties and providing more opportunities for retail investors. For retail investors, airdrops may be a goal, but for project parties, it is more a means to acquire users. Binance hopes to connect more quality projects and users through this platform, avoiding inflated numbers and ensuring that projects can interact with real users.
In addition, Binance is also considering how to allow users to obtain more benefits through on-chain operations while ensuring that these operations are simple and secure. Besides airdrops, Binance plans to promote the development of Web3 through open platforms in collaboration with the industry, creating more valuable scenarios and projects.
Winson: Binance's airdrop platform is a subsection of its open platform, aiming to connect Binance users with project parties. The core value of the platform lies in helping project parties promote their products to suitable users through precise user data. Binance does not intend to overly screen projects but instead adopts an open approach, allowing any project party to initiate airdrops independently.
In the future, Binance's open platform will further expand, allowing more project parties to promote on the platform without limiting the selection of projects. In this way, Binance aims to create a diversified platform that offers more opportunities for project parties and users.
Q: Will the wallet in the future shift towards chain abstraction or intent wallets? If so, will it adopt its own technology or technology from other projects?
Winson: Binance Wallet will indeed adopt technologies related to chain abstraction and intent wallets, but will not fully shift to these two approaches. The goal is to lower the user entry barrier and achieve a more convenient user experience through these technologies. Binance Wallet will not simply copy existing solutions in the market but will conduct in-depth technical research, combining its own user needs to design a suitable solution. Although technology serves the product, Binance emphasizes that technology should be integrated with user scenarios to ultimately bring more value to users, rather than merely following technological trends.
Q: Will Binance adjust the screening standards or display list based on user feedback on displayed tokens? If the displayed tokens receive widespread negative feedback, how will Binance respond?
He Yi: In the arrangement of project displays, Binance will follow its own arrangement logic, such as considering the price fluctuations of tokens, launch time, and other factors. Users can arrange according to their own needs, and Binance's focus is on maintaining platform transparency and flexibility, allowing users to sort themselves.
For negative feedback in on-chain operations, Binance will remind users through notifications, especially when high-risk projects emerge. As Binance operates purely on-chain, it cannot close functions like deposits or withdrawals like CEX platforms, so it mainly relies on early warning mechanisms to alert users. As for feedback channels, Binance is considering establishing a Telegram group to facilitate users' feedback at any time and ensure timely responses to project risks.
Q: What is the core idea behind Binance Wallet positioning itself as the largest airdrop platform? How does Binance Wallet help newcomers lower the threshold for on-chain interactions, or what are the advantages and considerations of being an airdrop distribution platform?
Winson: The strategy of Binance Wallet is not just focused on becoming the largest airdrop platform. Although the airdrop platform is an important means for Binance Wallet, it is not the only core strategy. The platform aims to bridge the gap between users and project parties, capturing user value through the airdrop platform while helping to achieve a win-win situation for both sides. The positioning of the airdrop platform is to provide users with a convenient airdrop participation experience, rather than just being a distribution platform.
Binance Wallet has already made significant optimizations in guiding new users to lower the threshold for on-chain interactions. These optimizations focus on the following aspects:
Guided experience: Provide users with comprehensive tutorials, guiding them on how to complete each step.
Airdrop management: Help users manage airdrop earnings through the Reward Center feature, avoiding manual management and improving user experience.
User lifecycle management: From project release to airdrop receipt, and then to earnings management, providing a one-stop solution to minimize user operations, leaving the rest to the platform.
Through these optimizations, Binance Wallet strives to simplify the user participation process and enhance the user experience.
From the perspective of project parties, Binance Wallet is not only an airdrop platform but also a precise marketing platform. Project parties can ensure that airdropped tokens are distributed to target user groups through Binance Wallet, which is also the direction for future product iterations.
Q: How does Binance Wallet define its own growth? What experiences and lessons has Binance Wallet learned during its past development process?
He Yi: The growth of Binance Wallet is defined not only as an expansion of a wallet platform but also as an important entry point for the entire Web3 ecosystem. The goal of Binance Wallet is to become a convenient channel for users from fiat deposits, registration, completing KYC to on-chain operations. Its core idea is to simplify the operational process and provide a smooth cross-platform experience, enabling users to complete their tasks smoothly, whether they are engaging in on-chain operations or using centralized exchanges (CEX) for financial management.
Binance Wallet positions itself as an entry point to Web3, helping users understand hot topics in the crypto space and eliminating the boundaries between blockchain and traditional finance. Whether users choose to interact on-chain or invest on CEX, Binance Wallet aims to provide the simplest solutions to enhance user experience.
In the process of Binance Wallet's growth, the biggest lessons learned mainly focus on the following points:
Insufficient reserve of professionals: In the past, Binance Wallet did not have enough reserves in Web3 technology, mainly leaning towards Web2 operational models, which, although efficient, still had shortcomings in deeply understanding and applying Web3 technology. This is an important point of reflection, and Binance hopes to attract more professionals to join and promote the further development of the platform.
The detours taken: Binance has encountered challenges in both compliance and technology. For example, it faced difficulties and setbacks in the past using Compass, compliance, and applying for licenses, especially in Web3 technology solutions, where there were some mistakes. Through these experiences, Binance pays more attention to compliance, making large-scale investments and adjustments.
The process of transitioning to Web3: Binance is gradually transitioning from a traditional Web2 platform to Web3, and this process is not easy. Although the company's operating model was very successful in a Web2 environment, the thinking and technical requirements of Web3 are different, and Binance has certain technical shortcomings in this regard. These detours helped the team understand that to truly become an industry leader, breakthroughs in Web3 technology and thinking are necessary.