Jessy, Golden Finance
The bear market in mid-2024 poses a significant challenge for investors. How can investors smoothly navigate the bear market and accumulate capital to welcome the bull market after Trump's election?
From one perspective, it relies on the coin listing strategy of the exchanges chosen by investors in the cyclical rhythm, as well as the measures taken to protect investors' interests.
This year, Binance has smoothly navigated a series of storms and still occupies the top position in the exchange arena. Currently, the number of Binance users has surpassed 225 million, with over 40 million new users added this year alone.
Newcomers continue to choose Binance. The success in a highly volatile market relies on Binance's coin listing strategy and the launch of a series of high-return wealth management products, ensuring investment returns for users. This is the 'technique' of Binance's success.
The 'Dao' of Binance's success lies in consistently standing with users.
A strategy for listing coins that emphasizes quality over quantity.
In 2024, unlike the very aggressive listing strategies of some second- and third-tier exchanges, Binance's coin listing remains selective, adhering to the principle of emphasizing quality over quantity.
According to the research report by Animoca Digital Research, in the first three quarters of this year, Binance listed 44 tokens. In contrast, KuCoin and Bybit listed over 150 tokens each, while Bitget listed 339 tokens. Thanks to this selective listing model, Binance achieved the highest return rate in this year's bear market.
As of September 2024, the average return rates for these exchanges are Binance -27.00%, Bybit -50.20%, KuCoin -48.30%, and Bitget -46.50%. This indicates that Binance has implemented a more effective selective listing strategy, resulting in relatively better token price performance in a challenging altcoin market environment.
Specifically, Binance has its own principles for coin selection. He Yi stated that the principles are divided into three points: first, to list projects that users need, which have users and traffic; second, to list projects that have longevity; and third, to list projects with solid commercial logic.
Under this bear market with insufficient market liquidity in the middle of this year, low market cap Memes were fully circulating, with no large sell pressure from VCs, resulting in low resistance to price increases, becoming the only way out for retail investors at that time. Binance also launched some popular Meme tokens.
According to data summarized by X user Ai Yi, as of November 18, Binance has launched a total of 20 Memecoin projects since 2024 (including contracts and spot trading). Among all launched projects, the proportion of spot trading is 35%, and only one project saw a decline after launch, while the small $NEIRO increased by as much as 7594%.
On November 11, the tokens PNUT and ACT launched on Binance, and within half an hour of listing, ACT's price skyrocketed 16 times, with an initial market value rising from 20 million USD to 350 million USD, and still having a 72.60% increase after listing, entering the MCAP top 200. PNUT also performed well, tripling in just one hour, and aligning with market hotspots and election narratives, and also saw a fourfold increase after listing, with a market value soaring to 400 million USD.
As an important narrative of this cycle, Meme tokens are undoubtedly something Binance cannot and should not miss.
He Yi stated that Binance has also reflected internally on Meme coins. Due to community criticism in the NEIRO debate, Binance has reflected more on what constitutes a good MEME and has chosen relatively dispersed and low market cap MEME projects for listing.
From the selection of Memes, it can be seen that Binance always considers issues from the user's perspective. Memes with concentrated chips have a higher probability of exploiting investors, while dispersed token projects with low market capitalization provide more opportunities for ordinary people to make money.
Binance's two other principles for listing coins are longevity of projects and solid commercial logic. Following these principles, Binance has listed projects like TON with solid commercial logic, as well as AI concept coins like Arkham, and Pendle, which has regained market attention due to the restaking trend.
All of these projects possess sustainability, and their value has been validated after undergoing the deep baptism of the bear market.
Binance's coin listing actions also bring more exposure and liquidity to projects. This is a win-win for both users and projects. Data shows that investing in new coins on Binance, due to Binance's strict oversight, has helped users reduce losses, especially in this year's bear market.
A variety of wealth management products ensure users can make money.
Data shows that the average ROI return for Binance Launchpool projects this year is 2.13 times. The average valuation of projects is 326 million USD, with a total financing of 929 million USD in Launchpool.
The data is very impressive. Generally, traditional trading platforms cannot guarantee users make money. However, at Binance, users holding BNB or FUSD can participate in airdrops for some new projects. This ensures that users can 'make money'.
In this bull market, Binance has frequently launched Launchpool, allowing users holding BNB or FUSD to participate in Launchpool to receive new coin airdrops.
Especially for users holding BNB, they can not only gain from the steady rise of BNB but also enjoy objective 'passive income' from various wealth management products like Launchpool.
New coin airdrops are not limited to Launchpool; there are also channels like Hodler Airdrop and Megadrop. Additionally, BNB in Binance's Web3 wallet can also participate in new coin airdrops.
For conservative investors, holding a large amount of BNB allows them to enjoy profits from the steady rise of BNB while also receiving airdrops from new coins, thus achieving multiple benefits.
On the other hand, holding BNB allows users to obtain stable wealth management income within the platform, which can hedge against the risks of token declines in a bear market. In a bull market, users can participate in wealth management methods like Launchpool to obtain the hottest tokens at no cost, gain substantial returns, and participate in the hottest narratives in the industry without risk, helping popular projects with financing and promotion, and contributing to the construction of the industry.
In addition to popular Launchpool projects, Binance also offers a variety of other wealth management products. Currently, Binance's wealth management products include earning coins, ETH staking, Binance pools, BNB yield pools, DeFi mining, and dual currency investments. These products can be categorized into capital-protected and high-yield types to satisfy various investment needs of users.
Standing with users.
He Yi once said that Binance's success stems from tapping into the pulse of the times and standing with users.
Discovering user needs within the industry and fulfilling them is the core reason for Binance's success.
The evolution of Launchpool proves this point. Initially, users participating in Binance's Launchpool needed to put BNB or specific stablecoins into the Launchpool pool and then 'claim' their earnings once the time was up. However, this year, after users used BNB to purchase capital-protected earning products, they could accumulate interest and automatically qualify for airdrop rewards from Launchpool, Megadrop, and HODLer without needing to reinvest and confirm. Additionally, BNB in Binance's Web3 wallet can also participate in new coin airdrops. This move undoubtedly simplifies the participation process and benefits users.
Binance not only meets users' trading needs; it started with trading but is not limited to it. The emergence of features like Earn, Square, Pay, and Web3 Wallet proves that Binance is enriching its product offerings to meet users' diverse needs in the industry.
Binance Square allows users to understand industry news and find the secrets to wealth. Binance Pay enables cryptocurrency to be truly applied in real-life scenarios.
As He Yi has said, Binance has always been trying to explore how to bridge the gap and truly popularize blockchain technology, allowing ordinary people to use blockchain, rather than just trading it. Ordinary users might not know what blockchain technology is, but they can benefit from it.
Binance has great ambitions to support the development of the industry, and the realization of these ambitions relies on recognizing and meeting the demands of the industry and users.
