ai16z, Binance announced tonight at 21:45 that perpetual contracts will be launched first, rather than spot trading. This has triggered panic emotions, leading to a decrease in coin prices. I sought an answer using an AI robot, as follows: What does it mean for Binance platform tokens to launch contract trading first instead of spot trading?
The statement that Binance platform tokens launch contract trading first instead of spot trading means that certain tokens will first conduct contract trading on the Binance platform rather than spot trading. This practice is not uncommon in the cryptocurrency market and is driven by various reasons and strategic considerations.
Reasons and Strategies Attracting users and increasing trading volume: By launching contract trading first, exchanges can attract more users to participate in trading, thereby increasing the platform's trading volume and liquidity. Contract trading usually offers a higher leverage effect, attracting more speculators and arbitrageurs. Technical reviews and compliance issues: Sometimes, tokens may fail to pass the exchange's review due to technical reasons or compliance issues, preventing immediate listing for spot trading. In this case, the exchange may choose to launch contract trading first, and then proceed with spot trading once the issues are resolved. Market strategy and user psychology: Exchanges may manipulate market sentiment through contract trading to attract user attention and participation. For example, by creating trends and topics through contract trading, they can draw more user attention and trading activity for that token. The AI robot's answer is positive. My personal view is also that the coin price will rise again, at least it won't remain stagnant at 2U.
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