Binance Calls for Small Projects with Strong Fundamentals

• Binance is warning traders and investors against new project listings with low float and high fully diluted valuations (FDVs).
• The exchange confirmed that it is committed to fostering a more diverse market environment for its retail traders and loyal community members.

In a recent report by Binance, the world’s largest crypto exchange by trading volume has embarked on a mission to reshape the crypto industry. The exchange is taking a focus on small to medium projects with an aim to foster a more diverse market environment for its users and the market at large.

The exchange has warned against a new trend of new projects listing with low float and high fully diluted valuations (FDVs). In its report, the exchange explains that these projects are prone to high sell pressure in the future, making them unfavorable to retail investors.

The exchange writes:

In recent months, we have observed a trend of tokens launching at high valuations with low initial circulating supplies…

To foster a healthy industry with a variety of market participants, including projects with lower to medium valuations, Binance is taking the lead to engage small to medium projects…

Launching tokens at a high fully diluted valuation and low circulating supply can result in dilutions from future unlocks which can place selling pressure on tokens. Such a market structure can be unfavorable for retail investors and loyal community members of the project. We are committed to reshaping this trend and fostering a more diverse market environment for our users and for all market participants.

In recent weeks, the exchange has undertaken several steps to delist less popular coins and doubled its effort to list regulatory compliance and to increase new additions based on investor demand.

As CNF reported earlier, the exchange is mulling over listing Shiba Inu (SHIB). The 12th ranked coin by market cap, has seen its popularity soar in recent months. The memecoin has risen to become a formidable rival to Dogecoin (DOGE) which is ranked 8th in the market.

The exchange calls on users to consider fundamental aspects of a project which includes tokenomics, valuation, and product. In its post, it goes on to note:

Actively supporting small to medium capitalization projects is one of our approaches to mitigate some of the risks that we have observed in certain aspects of the market. We invite all eligible projects to apply for listing with Binance, as we collectively strive to foster a more balanced and robust market environment.

This initiative shows that the exchange is fully committed to the growth of the ecosystem and is embarking on a journey to ensure transparency, and equitability and foster market diversity.