Jessy, Golden Finance
The bear market in mid-2024 poses a significant challenge for investors. How can investors smoothly navigate the bear market and accumulate capital in anticipation of the bull market following Trump's election?
On one hand, this relies on the listing strategy of the exchange chosen by investors within the cyclic rhythm, as well as measures taken to protect investors' interests.
This year, after smoothly navigating a series of storms, Binance still holds the top position in the exchange sector. Currently, Binance's user count has exceeded 225 million, with over 40 million new users added this year alone.
Newcomers continue to choose Binance as always. The success in a highly volatile market relies on Binance's listing strategy and the launch of a series of high-return financial products, ensuring users' investment returns, which is Binance's successful 'technique.'
Binance's successful 'way' is to always stand together with users.
A listing strategy that emphasizes quality over quantity.
In 2024, unlike the aggressive listing strategies of some second and third-tier exchanges, Binance's listing remains selective, adhering to the principle of quality over quantity.
According to a research report by Animoca Digital Research, in the first three quarters of this year, Binance launched 44 tokens. In comparison, KuCoin and Bybit launched over 150 tokens, and Bitget launched 339 tokens. Thanks to this selective listing model, Binance achieved the highest yield during the bear market in the middle of this year.
As of September 2024, the average return rates of these exchanges are Binance -27.00%, Bybit -50.20%, KuCoin -48.30%, Bitget -46.50%. This indicates that Binance has implemented a more effective selective listing strategy, resulting in relatively better token price performance in a challenging altcoin market environment.
Specifically, Binance has its own consistent principles for selecting listings. He Yi stated that the principles are divided into three points: first, projects that users need, with users and traffic; second, projects that have been around for a long time; third, projects with solid business logic.
In the bear market in the middle of this year, market liquidity was insufficient, and low market cap Memes circulated fully. Without the large-scale selling pressure from VCs, the upward resistance was small, becoming the only way out for retail investors at that time. Binance also listed some popular Meme tokens.
According to a summary of data by X user Ai Yi, as of November 18, Binance has launched a total of 20 Memecoin projects (including contracts and spot) since 2024, with spot trading accounting for 35% of all launched projects. Only one project experienced a decline after launch, while the small token $NEIRO saw an increase of up to 7594%.
On November 11, the launch of PNUT and ACT on Binance saw ACT's price soar 16 times within half an hour, with its initial market cap jumping from 20 million USD to 350 million USD, and after listing, it still had a 72.60% increase, entering the MCAP top 200. PNUT also performed well, tripling in just one hour, aligning with market hotspots and election narratives, and it even saw a fourfold increase after listing, with its market cap soaring to 400 million USD.
As one of the important narratives in this cycle, Meme tokens are undoubtedly something Binance cannot and should not miss.
He Yi stated that Binance has reflected on Meme coins internally. Due to community criticism regarding the neiro debate, Binance has reflected more on what constitutes a good MEME, and thus chose to list relatively decentralized tokens with lower market caps.
From the choice of Meme coins, it can also be seen that Binance is always considering problems from the user's perspective. Meme coins with concentrated chips have a higher probability of 'slicing' retail investors, while relatively decentralized, low market cap Meme projects provide ordinary people with more opportunities to earn money.
The other two principles for Binance's listings are - projects that last long and projects with solid business logic. Following these two principles, Binance has listed projects like TON, which have solid business logic, as well as concept coins like AI Arkham, and Pendle, which has regained market attention due to the trend of restaking.
These projects themselves have sustainability, and after experiencing the deep baptism of the bear market, their value has been verified.
Binance's listing actions have also brought more exposure and liquidity to projects. For both users and projects, this is a win-win situation. Data shows that investing in new coins on Binance, through Binance's stringent checks, at least helped users reduce losses during this year's bear market.
Rich financial products ensure users can earn money.
Data shows that the average ROI for Binance's Launchpool projects this year is 2.13 times. The average valuation of the projects is 326 million USD, with a total fundraising of 929 million USD in Launchpool.
The data is quite impressive. Generally, traditional trading platforms cannot guarantee users make money. However, on Binance, users holding BNB or FUSD can receive airdrops for some new projects. This ensures that users can 'make money.'
In this bull market, Binance has launched Launchpool with high frequency, allowing users holding BNB or FUSD on the platform to participate in Launchpool and receive new coin airdrops.
Especially for users holding BNB, they can not only gain steady profits from the rise of BNB, but also rich financial products like Launchpool can bring objective 'passive income.'
New coin airdrops are not limited to Launchpool; there are also channels like Hodler Airdrop, Megadrop, etc. Additionally, BNB in Binance's Web3 wallet can also participate in new coin airdrops.
For conservative investors, holding a large amount of BNB allows them to enjoy profits from the steady rise of BNB while also receiving airdrops of new coins, achieving a multi-benefit.
On the other hand, holding BNB allows for stable financial income on the platform, which can hedge against the risk of token depreciation in a bear market. In a bull market, users can obtain the hottest tokens at no cost through financial methods like Launchpool, gaining substantial returns while also participating in the industry's hottest narratives without risk, aiding popular projects in financing and promotion, and contributing to the industry's development.
In addition to the popular Launchpool, Binance also offers other rich financial products. Currently, Binance's financial products include earning coins, ETH staking, Binance mining pool, BNB yield pool, DeFi mining, dual currency investment, etc. These products can be categorized into principal-protected and high-yield types to meet users' various investment needs.
Standing together with users.
He Yi once said that Binance's success is due to hitting the pulse of the times and standing together with users.
Discovering the needs of users in the industry and meeting those needs is the core reason for Binance's success.
The evolution of Launchpool proves this point. Initially, users participating in Binance's Launchpool needed to invest BNB or specific stablecoins into the Launchpool pool, and when the time came, they had to 'claim' their income themselves. However, this year, after purchasing principal-protected earning products using BNB, users can accumulate interest and automatically qualify for airdrop rewards from Launchpool, Megadrop, and HODLer without needing to invest and confirm again, and BNB in Binance's Web3 wallet can also participate in new coin airdrops. This move undoubtedly simplifies the participation process, benefiting users.
Binance not only meets users' trading needs; it started with trading but is not limited to it. The emergence of Earn, Square, Pay, and the Web3 wallet proves that Binance is using a rich array of products to meet users' various needs in the industry.
Binance Square allows users to understand industry information and find wealth codes. Binance Pay enables cryptocurrencies to be truly applied in real-world scenarios.
As He Yi said, Binance has always been trying to explore how to bridge the gap and truly democratize blockchain technology, allowing ordinary people to use blockchain, not just speculate on it. Ordinary users may not know what blockchain technology is, but they can benefit from it.
Binance has great ambitions to support industry development, and the realization of these ambitions relies on seeing and meeting the needs of the industry and users.
