Author: 0xTodd
I am not afraid of offending people - the "Binance listing dilemma" is an inevitable outcome, and the redemption plan is very cruel.
1. Traditional Listing vs Crypto Listing
The two most important purposes of traditional companies going public are:
1. Refinance and expand production;
2. Endorsement;
Both are designed to enable companies to gain commercial competitive advantages and create more profits for themselves and their shareholders.
Secondly, both:
3. Founders and investors exit;
4. Motivate employees;
The former is a real benefit and encourages the birth of more businesses in society; the latter gains business advantage by increasing employee loyalty.
Importance 1>2>3>4
This is why in the past people always said that "capital will reproduce itself", because the ultimate goal of everything is to make more money through business advantages.
Moreover, many companies do not even want to go public, such as ByteDance and Huawei, because they make enough money on their own and no longer need to expand their business advantages through refinancing.
Everyone knows the cruel truth of our industry: 99% of Crypto projects do not make money at all.
The purpose of expanding commercial advantages was *non-existent* from the beginning. There was no point in investing in reproduction, and the more you invested, the greater the loss.
Then only goals 3 and 4 remain, namely the exit of founders, investors and employees.
2. Benefits and Obligations
Traditional listings have stringent requirements and obligations:
Before going public: There must be a strong sponsor to do the IPO. This step should at least prove that there are no major problems with the founder and the business model, and let the founder know that this opportunity is expensive and not to mess around. The sponsor also cherishes its own feathers (licenses) and will not use excessive tricks.
However, the problem with the Crypto protocol is that it enjoys the benefits of traditional listings: investors exit/incentivize employees…
However, it does not bear any traditional listing obligations:
Before listing, the project had no sponsor, and many founders did not realize that listing was a rigorous matter. On the contrary, everyone was an anonymous project and did not consider future reproduction.
So - bribery/cheating/inflating/cheating, all tricks, of course, should be used as much as possible, because there will be no punishment!
3. No punishment
Important things should be said three times:
No punishment will be obtained;
No punishment will be obtained;
No punishment will be obtained;
The project party will not be punished, the exchange employees will not be punished, and the exchange itself will not be punished.
3.1 Project Party
The heaviest punishment a project owner can receive is being blacklisted by the exchange.
But what does it matter if you are blocked?
To use a classic fantasy question, suppose you have a red button in front of you:
A. 50% chance to get 1000w;
B. There is a 50% chance that the button will never be pressed again;
You're going to press it? You're going to press it 100 times right now - is this a shitty punishment?
3.2 Exchange Staff
You can say that Binance and Coinbase have punishments for employees who accept bribes - criticism, dismissal, and even theoretically holding them legally accountable.
However, it is too difficult to obtain evidence. Crypto is the most difficult asset to track in the world, and it is an asset used by even Russia, Iran, and North Korea. You know, our industry's infrastructure in privacy is the best in the world:
I chat using Signal or TG private chat;
I trade using some cross-chain bridges and even mixers;
I use some third-tier exchanges that do not require KYC for withdrawals.
Even if Interpol investigates it, it may not be able to solve the problem. How can the internal audit department of a mere exchange dare to claim to solve corruption?
And corruption is also extremely covert:
Just say a few nice words within the exchange and give some pointers at the project meeting and that will be enough.
In fact, as long as you choose to remain silent rather than break the news when your leader is trapped in an information cocoon, you have completed the entire process of bribery.
So, as Jocy said, the project team specifically bribed the KOLs that the exchange boss followed. Even if Chen Lifu and Mao Renfeng were resurrected, the Jinyiwei inside your exchange could never be solved. This is an unsolvable conspiracy.
3.3 The Exchange Itself
We think of an exchange as a single entity.
A coin drops 90% after it goes online, and then drops another 90% a year later. Compared to launching a coin that increases tenfold, the former makes less money, while the latter makes more money.
Yes, you have discovered that even if you list junk coins on the exchange, you can still make money and not lose money.
The penalty on reputation cannot be quantified at all, and the exchange will not set up a department to specifically count the changes in reputation. It will offend both leaders and colleagues, and there is no profit, so no one will do it.
So, what kind of punishment is this? The last time I bought a shitcoin, the punishment was “making less money”?
Is this a punishment?
IV. Financial Disclosure
After traditional companies go public, they disclose financial statements on a regular basis, and countless short-selling institutions and retail investors also have to pore over the financial statements.
To give an example we all know, PricewaterhouseCoopers has been criticized to death for taking the order from Evergrande, and more importantly, it was fined a huge amount of 320 million yuan by the regulator.
However, after the Crypto project goes public, not to mention the lack of financial disclosure, it is difficult to determine the whereabouts of the funds in the on-chain treasury.
The project party can use the money obtained from the reduction of holdings at will. They can buy luxury houses, hold yacht parties, fall in love, or even study immortality. The only certainty is that the money will not be reinvested to expand reproduction.
This is the crux of the matter - after listing, there is no problem with reducing holdings/cashing out, but the problem is that after cashing out, there is no further investment in production, which is a cycle of blood loss.
5. Solution
The symptoms are serious and the disease is deep, so the only solution is: stop listing, stop listing, stop listing.
Before the Crypto project completely solves the problem of “no income at all”, listing a coin has no meaning:
The last one dropped 90% directly, which meant that all users were quickly cut off;
The previous one first pulled it up 10 times and then trapped it at the top, which was to help smart users cut off stupid users.
It's just the pot calling the kettle black. The latter just looks better, as he cut the pot with his own ability, so-called "he was given a chance".
Warning: If exchanges continue to adopt the existing coin listing strategy, it is only a matter of time before they are gradually eroded or even replaced by DEX.
I would not be surprised if one day Telegram Bot gets 5-10% of BN CB and UB.
--------Dividing line--------
Now let’s get into the fantasy time: The fundamental solution: set up two sites, a main site + a community site.
【Main site】 Gradually shrink
Stop listing coins immediately. If you are more aggressive, gradually eliminate the tokens that were previously delisted.
【Community Station】 New
The newly established community station adopts the DEX model, that is, the registration system, and every project can be listed fairly.
Let me ask you, when have Uniswap or Raydium ever been criticized for listing tens of thousands of tokens every day?
When has Hayden Adams ever been bribed? Alpha Ray's name is fake, and no one needs to create an information cocoon for him.
It may be painful, but the benefits are:
In the future, listing on Binance or Coinbase will no longer be the exit destination for the project party; instead, it is the starting point for starting to strive and be determined to create awesome applications (otherwise, you will not make any money).
Value discovery is completely left to the community, not the coin listing team or investment department. The registration system can perfectly solve the problem of "why BN is always the last one to go".
If there is a rising star of Crypto in it, it will definitely not be missed.
And the junk coins in it will never deceive more people through unfair means.
Looking forward to this day, this decision is great and cruel.
However, once successful, it can even reverse the trend of the entire industry in one fell swoop, stop the To Binance and To Coinbase trends, and then give birth to a real killer app like ChatGPT.
Never go against human nature;
Never go against the laws of business.
