Recently, Binance has launched many Meme coins, which has attracted everyone's attention and discussion.
So, why did Binance choose so many Meme coins? Is there any strategy behind this? Let’s talk about this topic today.
Simply put, Binance’s coin listing strategy can indeed make people make money in the short term, but one still has to be careful when holding these projects for the long term.
Binance mainly decides which coins to list based on market trends and user demand in order to maintain its competitiveness and market share.
Why has Binance recently launched so many Meme coins?
Recently, Binance has successively launched Meme coins such as NEIRO, TURBO and BABYDOGE because these coins are very popular in the market.
Some investors are not very interested in traditional VC coins, but have high expectations for Binance.
Data shows that 42 projects have outperformed Bitcoin this year, 11 of which are Meme coins. This shows that Binance's listing strategy can bring wealth effects to a certain extent.
For example, WIF and TURBO launched on Binance increased by 234% and 38.6% respectively after listing.
This wealth effect attracted more users and trading volume, further consolidating Binance’s position in the market.
Why are Binance listing effects usually short-term?
We have found that listings on exchanges such as Binance and Upbit often lead to short-term price increases.
For example, smaller tokens such as Neiro and UXLINK have increased by 1,264% and 101% respectively after listing.
However, in the long run, the listing effect is not lasting.
For example, among the five tokens launched in August, the market value of three tokens decreased after listing, which shows that the listing effect cannot sustain long-term price growth.
How does Binance cope with the fierce competition among exchanges?
Binance tends to follow the hot trends in the market, especially meme coins, because if it does not, it may lose users and trading volume.
Competition among exchanges is very fierce. If Binance does not list these popular currencies, other exchanges may snatch away users and transaction fees.
By analyzing the listing announcements of multiple leading exchanges, we found that Meme Coin is the only sector that can be listed on all exchanges at the same time, showing its popularity.
Other popular sections include TON Ecosystem and Blockchain Games, but their coverage is not as extensive as Meme.
From 2021 to the present, Binance's listing preferences have shifted from infrastructure, L1, Gamefi, and Defi to the Meme track.
Binance’s strategy for listing coins is to capture the main narrative while taking a diversified path to adapt to different market needs.
What changes have taken place in Binance’s coin listing model?
Binance's coin listing model has shifted to a golden shovel positioning, which is mainly achieved through direct coin listing model and airdrop model.
Starting in August 2023, Binance switched to a mining model, probably to maintain the BNB price.
In the case of low market enthusiasm, using BNB staking mining can allow large investors to gain profits, thereby stabilizing the market.
In general, Binance's coin listing strategy brings wealth effects in the short term by catering to market trends and user needs, but most projects are not suitable for long-term holding.
