Compiled by: TechFlow

Binance's listing standards have always been a hot topic in the crypto industry. Both project owners and VCs hope to learn about Binance's listing preferences through clues or indirect inquiries. Recently, Binance has frequently launched Ton ecological traffic projects, which has also caused controversy. Some people think that these projects have no substantive significance, while others think that these projects at least reach a large number of C-end users, which is better than simply having infrastructure without users. In fact, Binance disclosed its latest listing standards in May this year. TechFlow summarized that Binance currently prefers the following types of projects:

1. Low valuation and high circulation. Correspondingly, Binance does not seem to like high valuation and low circulation projects now;

2. It is necessary to reserve a large amount of tokens for community users, give them to the community through airdrops and other means, and reduce the allocation to non-community users. I understand non-community users to be VCs and project owners themselves;

3. There needs to be a healthy and benign business model and at least a minimum viable product;

4. Have a truly large and continuously growing community of users.

In addition, Binance also has its own red lines, so Binance also stated that it reserves the right to decide whether a project is suitable for listing on the Binance platform.

According to the above standards, several projects that have been launched recently are indeed within its framework.

The following is Binance’s announcement on coin listing standards:

Dear Binancians,

Binance is committed to fostering a healthy and sustainable market environment, always putting the interests of our users first. In recent months, we have observed a trend where tokens are issued with high valuations but low initial circulation. We discussed this trend and highlighted its impact in our report titled "Low Circulation and High FDV: How Did We Get Here?"

In order to foster a healthy industry that attracts a variety of market participants, including projects with lower to medium valuations, Binance is taking the lead in attracting small and medium-sized projects. We hope to invite these high-quality teams and projects to apply for our listing programs, including direct listings, Launchpools, Megadrops, etc. We hope to promote the development of the blockchain ecosystem by supporting small and medium-sized projects with strong fundamentals, organic community base, sustainable business models, and professional teams as responsible industry participants.

Why is this important?

Issuing tokens at a high fully diluted valuation and low circulating supply may lead to dilution of future unlocking, which will bring selling pressure on the tokens. Such a market structure is disadvantageous to retail investors and loyal community members of the project. We are committed to reshaping this trend and creating a more diversified market environment for our users and all market participants.

What projects we are looking for:

Industry: All industries are welcome to apply for listing

Valuation: Low or medium valuation compared to competitors in their respective industries

Token Economics:

  • Reserve a large amount of token allocation for community users (airdrops, community rewards, etc.)

  • Moderate token float during the Token Generation Event (TGE)

  • Reduce allocation to non-community users

Business and products:

  • Good Product-Market Fit (PMF)

  • Self-sustaining business model

  • At least a minimum viable product (MVP)

  • Prioritize technology or design innovation

Social Engagement and Community Base:

  • Organic user base

  • Sustainable user growth

obey:

Responsible market participant, taking into account regulatory and compliance standards

What’s in it:

Achieve organic and sustainable growth in the industry based on more reasonable valuations and token distribution

Better alignment with retail users and the community through a fairer TGE

Binance Launchpool and Megadrop can help increase project visibility and attention

How to Apply:

If your project meets the above criteria, please fill out the application form. If your project passes our internal screening process, Binance will contact you.

Conclusion:

In order to promote the sustainable development of the cryptocurrency market, we are committed to creating value for users while protecting their interests. Actively supporting small and medium-sized capital projects is one of our ways to mitigate the risks in certain aspects of the market. We sincerely invite all eligible projects to apply for listing on Binance and work together to create a more balanced and stronger market environment.

Important Tips:

Binance reserves the right to determine at its sole discretion whether a project is suitable for listing on the Binance platform.