He Yi, the co-founder of Binance, who is known as the No. 1 in the cryptocurrency world, wrote an article yesterday to share her recent views on hot topics related to the cryptocurrency world and Binance, and responded to the community's doubts about Binance's coin listing strategy this year.
He Yi, co-founder of Binance, the world's largest cryptocurrency exchange, wrote an article titled "If We Have Different Opinions, You May Be Right" on the Mid-Autumn Festival yesterday (17), answering three major questions that have been hotly debated in the cryptocurrency circle and Binance community recently:
Is the cryptocurrency world going to end?
Is Binance flat?
Binance Coin Listing Strategy
The following is a summary of the key points of the article:
1. Is the cryptocurrency world going to end?
Recently, many posts in the industry that are pessimistic about blockchain are very popular. Many people outside the industry are asking me if the blockchain scam is over? People in the industry are asking if the industry has no future? What stage of the cycle are we at?
Compared with good news, bad news is more likely to make headlines, and bad news is also more likely to get more traffic and attention. What is more worthy of ridicule than people in the cryptocurrency circle singing the praises of the cryptocurrency circle? These behaviors and emotions are constantly spreading, engulfing the traffic and intensifying. Even some OG retirements are magnified as evidence that "the cryptocurrency circle is over." Some industry-firm idealists also reveal anxiety and confusion in their chats with me.
In fact, it is not just the cryptocurrency community that is anxious. We live in this world and cannot do without the environment, water and air. Whether the investment market is active is inseparable from the economic cycle. Whether the economy is up or down will determine where the public's budget is allocated. As an ordinary person, you will consider investing only when you have enough food and clothing. Therefore, every news from the Federal Reserve is a baton for the market trend for senior cryptocurrency players.
Especially as the overall market size of the cryptocurrency circle continues to expand and large financial institutions participate in the industry, the blockchain industry is gradually maturing. Especially after the approval of BTC and ETH ETFs, as a "configurable asset" in the investment category, the cryptocurrency market and the stock market have become two sides of the same coin.
Hindsight: What changes have taken place in the cryptocurrency world over the past decade? I once compared the cryptocurrency world to the Wild West, so those who poured into the industry early on were the early gold diggers in the West. In an economic upswing, a little bit of capital overflowing into the cryptocurrency world can also make the cryptocurrency world grow exponentially. In the early days of the wild growth of the blockchain industry, as long as you dared to go all-in, it was not uncommon to see a coin that increased by a hundred or a thousand times. This was the dual blessing of the early niche market and the macro economy. In such an environment, if you go all-in today, you will get your money back if you go all-in tomorrow.
But as time goes by, the economy enters another cycle, consumption is downgraded all over the world, more players join the gold digging team, and the gold digging players wielding shovels continue to upgrade their equipment. There are more and more professional players at the first and second levels of the traditional market, and everyone feels that "the cryptocurrency circle is not as profitable as before."
From Bitcoin being called a "Ponzi scheme" over and over again by countless people and being criticized countless times by the mainstream circles to the approval of Bitcoin and Ethereum ETFs, it is certainly a remarkable victory. At the same time, we can see that the scale of transactions in traditional finance's related products in cryptocurrencies is steadily expanding, such as the trading volume of CME and ETFs.
Yes, the big ones are coming, but the way they are coming is different from what everyone imagines, that is, the way capital takes over without thinking.
Just like the Internet changed the publishing industry and the television industry, it did not happen overnight, but rather happened silently and brought about more than just the rise of Bitcoin.
2. Is Binance flat?
We are the pigs in the wind, stepping on the pulse of the times and standing together with our users to reach what Binance is today.
It comes from the famous "Flying Pig Theory" (also known as the Wind Outlet Theory) of Lei Jun, the founder of Xiaomi: To start a business, you have to be a pig standing on the wind. If you stand in the right wind, the pig can also fly.
We hope that the blockchain industry is not a playground for niche players. We hope that Binance can serve one billion users in the future. We hope to become the infrastructure of the future world. We have been working hard for this goal. When we want to promote the large-scale adoption of the blockchain industry, when we want to meet the needs of most people, when we need to protect the rights and assets of the vast majority of users, it means that we need to find a balance between ideals and reality.
Binance is no longer a child, so we need to reconcile with the world, comply with regulations, fight money laundering, and follow the existing rules of the traditional financial industry.
History always repeats itself. There were countless technological innovations in the early days of the Internet, and the turning point was that companies that served the majority of people became today's Internet giants, while the absolute liberalism of the early Internet eventually led to the dark web.
We have no way of predicting the future, so we can only learn from history. Products need to be able to serve the majority of talents to have the possibility of becoming the financial infrastructure of the future world. Binance's products start with transactions, but are not limited to transactions. You will see the emergence of Earn, Square, Pay, and Web3 wallets.
We hope to try and explore how to bridge the gap and truly popularize blockchain technology so that ordinary people can use blockchain instead of just speculating on it. They may not know what blockchain technology is but can benefit from it, just like your grandma doesn't understand Internet technology but can enjoy the convenience brought by mobile phones.
Bubbles will burst, but products that truly solve user needs will change the world and make history.
3. Is your coin listed on Binance?
The community has been discussing the listing of coins on Binance very intensely in recent days. We have carefully read everyone's opinions. Whether they used to think that listing VC-invested coins on Binance was a betrayal of the community, or that listing MEME coins on Binance lowered the listing standards, or that listing TG game projects on Binance was nonsense and criticizing studio players, and even investigating rumors of insider trading, we have been paying attention to them and constantly reflecting on the idea that "the deeper the love, the more severe the criticism". People who don't care about you won't spend time on you.
Binance relies on its users to get to where it is today, and every user's opinion is taken seriously. I will try to explain the basic framework and process of listing coins that everyone hates:
Binance listing consists of four parts: business, research group, committee, and compliance review.
I will roughly summarize that the aesthetic preferences retained by previous committees can be roughly divided into:
1) Projects that users need, projects that have users and traffic
In the past two cycles, we have missed many coin listings. In the early days, we did not pay enough attention to MEMEcoin. Therefore, we were slow to realize the importance of listing Shib, PEOPLE, PEPE, and even the recent MEME projects only after they had risen very high, which resulted in us being humiliated. The experience and lesson here is that Binance, as a trading platform, cannot just think it is good itself, but also needs users to think it is good.
In the dispute between big and small neiro, it is also because of the criticism from the community that we are more reflecting on what is a good MEME. If the essence of the MEME community is another "anti-Wall Street movement", then is the MEME with highly concentrated tokens, whose price has been pumped up and whose bubble is unknown when it will burst still MEME? Or is it a Ponzi scheme in MEME guise?
Therefore, we listed several MEME projects with relatively decentralized tokens and low market capitalization. Among the more than ten projects screened in the initial stage, many failed due to compliance review and token concentration.
2) Choose a long-lived project
At the beginning of the last two cycles, some traditional VCs began to enter the cryptocurrency circle in a big way, investing frequently and generously. Then everyone found that any project with a bit of potential in the industry was rising in value. After the project parties received valuations of hundreds of millions or even billions of dollars from the VC side, they had a lot of money to try and error and adjust their direction. The heyday of infrastructure projects like Matic that sold coins at low valuations is gone forever. With large sums of cash in hand, who would be willing to sell their own coins for tens of millions of dollars?
The price of their tokens is not determined by Binance, but by the token model, circulation, buying and selling. These high-valuation projects of top teams have a large number of MMs (market makers) willing to give them advice to maintain a high market value, and a large number of exchanges are flocking to them, especially AMM has brought about the rise of DEX, and it is not impossible without a trading platform. But it is undeniable that when other projects rise and fall, they live longer and have more opportunities.
Many people would say that this shows that Binance is losing its voice. Yes, of course it does not have absolute voice. This is precisely the characteristic of the industry's decentralization. It is the result of the joint efforts of financial professional players and the rise of DEFI. Both of these are the key to bringing the industry to the next level.
Without the involvement of capital, how could cryptocurrency become a hot topic in the US election? Decentralization and the lack of absolute authority, isn’t this the charm of this industry?
3) There are projects with solid business logic
In the past decade, a statement has often been heard: "Cryptocurrency projects do not need a business model, as soon as there is a business model, the valuation can be calculated."
But I think that whether it is Web2 or Web3, the essence of entrepreneurship is to create what the world needs, and naturally someone will pay for it. Whether the customer is B-end or C-end, the way of financing will change, but the essence of entrepreneurship will not change.
Since the craze in 2017, I have been conveying a concept: issuing coins is a lifelong responsibility, and it is guaranteed by long-term reputation. The community supports you, but you also have greater responsibilities. If you sell off the coins directly after issuing them and retire, then a person’s reputation bankruptcy is the real bankruptcy.
Because we like projects with solid business models and revenue, we hope that the team is reliable, they have entrepreneurial potential and can take responsibility. We also hope that your valuation is not too high and that you can take care of the community to grow together. We hope that you can empower tokens, because if you stand with your users, your users will stand with you.
If any project meets these standards, please contact us, leave a comment under this post, or fill in the information in the public application link on the site.
Welcome to report the corruption in Binance
In terms of the coin listing process and prevention of insider trading, as a system, Binance has considered all links to isolate information. Just as the outside world has said, the Binance coin listing team has been through several rounds of bloodbaths. Currently, the people doing coin listing research at Binance do not talk about business. When talking about business terms, they do not know what projects have entered the observation pool. Everyone only knows the progress of the project they are responsible for. Even if they pass the IC vote, these projects still need to pass strict compliance review restrictions and may be cancelled at any time.
According to the exchange's compliance requirements, all Binance employees need to complete relevant mandatory compliance training. At the same time, Binance also has an independent audit team that specializes in investigating such violations. If it is verified that there is information leakage or insider trading suspicion, Binance will immediately initiate legal proceedings to transfer the relevant personnel to the judicial authorities, and those who are serious will face criminal responsibility.
We can establish rules to constrain people, but it is not ruled out that there are still information blind spots in the current system or system, so we issue a high reward:
We welcome all reports of any corruption related to coin listings or any other "coin listing observation indicators" that we are blind about. If verified by the Binance team, we will keep your identity confidential and provide you with a security vulnerability bounty of US$10,000 to US$5 million.
Report mailbox: audit@binance.com
