As an old user of Binance since 2017, I have some immature suggestions for Ms. He Yi!
As a mature user, I dare not imagine that Binance controls the rise and fall of altcoins and does not list new coins at all. This is not in the interests of the exchange and does not conform to business logic!
Suggestion 1: Binance will set up a low-circulation sector and a 26-year unlocking sector; Binance does not control the rise and fall but can control the flow of the exchange and the risk reminders of users;
Similar to the Innovation Zone, additional risk reminders for low circulation rates of copycats, while increasing the unlocking time and schedule for each coin;
Communicate with the project owners and try to change the unlocking period to 26 years to give the market some breathing space; provide traffic support to projects willing to cooperate;
The j4j plan draft of the jup project is a model that can be used as a reference. I dare not imagine how many project parties are willing to cooperate, but those who are willing to cooperate will be given traffic support!
Suggestion 2: Establish a liquidity risk fund for altcoins when new coins are launched, to maintain the market depth when the altcoin market is cold or plummets;
For example, collecting 5% of the coins from the project party as the risk fund for the liquidity of the altcoin, slowly selling them when the altcoin skyrocketed, and maintaining the depth when there was a problem with the depth of the altcoin; for example, taking the closing price of the first day of the opening of a new coin as the standard:
Sell 1% of the coins if the price doubles
Sell 1% of the coins after the price rises four times
Sell 1% of the coins after the price rises eightfold
Selling 1% of the coins after a 16-fold increase...
Buy back 1% of the coins after a 3-fold drop
Buy back 1% of the coins when the price drops by 6 coins
....
Suggestion 3:
The new coin will be opened with 30% circulation, Binance will adopt the financing transfer method, and the project party will lend 30% of the coins to Binance, and then slowly return them to the stakeholders who should get the chips, such as institutions, project parties and communities, according to the time specified in the white paper!
In this way, each new coin keeps a stable circulation of 30%, and unlocking is just the transfer of chips from liquidity providers to the unlocking beneficiaries, to maintain a stable number of copycats!
The big picture is not moral kidnapping nor is it showing off and suffering losses. It is for greater profit space and long-term. Cognitive Society hates moral kidnapping the most~
If the unscrupulous new currency causes 90% of the copycats to lose money, or even continues to hit a new low in the past five years, there may be no retail investors in the currency circle in a year, and institutions will trade through Bitcoin and Ethereum ETFs!
Binance is in danger, not just getting weaker!
Binance’s strength and profits come from copycats. Binance must create a good copycat order. This is not moral kidnapping, but a community of interests.
If Binance allows the mass death of copycats for the sake of short-term listing profits and transaction fees, the death of copycats will also be the time when Binance will weaken!
Most of the consumption at Wanda’s counters comes from wealthy people, that is, the apparent trading volume in the cryptocurrency market is provided by market makers and institutions. However, once the losers are unwilling to hang out at Wanda, and Wanda loses its popularity, will wealthy people still go to Wanda to consume?
Binance’s trading volume is mainly Bitcoin, but if the copycat disappears and retail investors lose money, institutions will not be in the mood to trade on the exchange!
From the Binance veterans of 2017
Cognitive Society
