Recently, some friends have been debating which coins should or should not be listed on Binance. Let me clarify: the cryptocurrency world operates as a free market. The liquidity and trading volume across centralized exchanges (CEX), decentralized exchanges (DEX), and various trading platforms form a combined pool. CEXs are not isolated markets. Even if Binance doesn't list certain projects, these projects will continue to exist. Trading volumes and funds will still be distributed throughout the industry. Beyond the unlocking of venture capital (VC)-funded projects, meme coins, local chain-based tokens, speculative schemes, and capital plates will also be distributed across the market. Once ETFs are approved, the traditional financial market will further redirect funds into the cryptocurrency world.
Regarding venture capital, some VCs do contribute to inflated prices. However, VCs typically raise funds from limited partners (LPs) with a lock-up period of 7 years (4+3 years), collecting management fees and dividends. VCs often unlock their investments a year after the Token Generation Event (TGE), though this is not always the case. Consequently, many VCs in the cryptocurrency sector are facing bankruptcy, and some LP investments might become worthless. Projects that receive substantial financing have a better chance of surviving market bubbles, but the fundamentals of a token's price and governance are determined by the project team, and there is no standard answer.
Therefore, it's crucial to conduct thorough analysis before investing in project tokens. Consider factors such as the token's application scenarios, release cycles, holding ratios, and initial circulation. The rise of decentralized finance (DeFi) has brought more liquidity and increased freedom to the industry, making it harder for CEXs to establish rules. This very dynamic underscores the appeal of the free market in the cryptocurrency space.
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