## Understanding Coin Listings on Binance

Recently, some friends have been debating which coins should and shouldn’t be listed on Binance. Here's my explanation: The cryptocurrency world operates as a free market. Liquidity and trading volume across CEX and DEX platforms form a collective pool. CEX is not an isolated market. Even if Binance doesn’t list certain projects, these projects will still exist, with trading volume and funds dispersed throughout the entire industry.

Beyond VC-invested projects, Meme coins, chain-based tokens, and capital-driven projects will also find their way into the market. With the approval of ETFs, traditional financial markets will divert funds into the crypto world.

Looking at VCs, they are often seen as a key driver of inflated prices. However, VCs typically raise funds from LPs with a 7-year lock-up period (4+3 years), earning management fees and dividends. They usually unlock one year after TGE (though not always). Many VCs in the crypto space are going bankrupt, and some LP investments may result in zero returns. Projects with substantial financing have a better chance of surviving market cycles, but the fundamentals of token prices and governance models are determined by the project teams, with no standard answer.

Therefore, before investing, it's crucial to conduct a thorough analysis of project tokens, including their application scenarios, release cycles, holding ratios, and initial circulation. There is no one-size-fits-all answer.

The rise of DeFi has brought more liquidity and freedom to the industry, making it harder for CEXs to set rules. Yet, this is the allure of the free market in the crypto space. DYOR (Do Your Own Research).