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Unusual Binance Listing Strategy Uncovered

Published 2023-11-28, 09:14 a/m
© Reuters.  Unusual Binance Listing Strategy Uncovered

U.Today - Binance exchange is making a rare move on the market that may soon serve as a standard among trading platforms in the digital currency ecosystem. This move, as by independent crypto journalist Colin Wu, is embodied in an unusual listing strategy whereby assets are supported on Binance Futures but are not listed on the exchange's major spot outlet.

At the moment, Binance has provided support for Kaspa (KAS), Bitcoin SV (BSV), Pyth Network (PYTH), BONK, ORBS, BIGTIME, TOKENFI and Wrapped Ethereum (ETHW). These assets have a major appeal to them in terms of their value proposition. For instance, while Kaspa is deemed a viable alternative to Bitcoin (BTC) as a proof-of-work (PoW) protocol, TokenFi emerged from Floki as a tokenization platform to take on the fast-growing industry.

From his observation, Wu pointed out the exceptional case of BLUR, the native token of the Blur NFT Marketplace that was before making its debut on the exchange's spot outfit. It remains unclear what the exact agenda is for Binance as immediate analysis points to the fact that this futures listing model is more favorable for the trading platform.

This is due, in part, to the fact that the trading platform can earn fees without assuming much risk. That contract traders can assume enough risk and stay resilient in the face of volatility also forms a key basis while this new model seems to serve the exchange's mission.

Regulatory consideration

Binance, despite being the largest trading platform, faces enormous crackdowns from regulators, particularly those in the United States.

About a week ago, the exchange with the United States Department of Justice (DOJ) to wrap up the ongoing probe into the exchange. Alongside this settlement, the exchange's founder Changpeng "CZ" Zhao also had to .

The regulatory crackdowns it is facing might have contributed to its cautious approach with its current listing strategy.

This article was originally published on U.Today

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