Why Did Binance Remove SHIB & 1INCH From Innovation Zone?

On April 18, Binance will remove SHIB, 1INCH, and a couple of other projects from the Innovation Zone, the exchange confirmed in a recent announcement.

Binance launched the Innovation Zone in 2021 to provide users with a secure environment to trade ‘new and innovative projects.’

What Do the SHIB and 1NCH Removals Actually Mean?

The decision comes after Binance’s routine evaluation, which stated it would not affect other services connected to SHIB and 1inch.

Apart from Shiba Inu and 1INCH, Frax Share (FXS) and Trust Wallet Token (TWT) were also removed from the Innovation Zone.

According to Binance, when deciding whether to remove a project from the zone, it takes into consideration things like the team’s dedication to the project, the quantity and caliber of development activity, trading volume, and liquidity. However, the announcement suggests these projects aren’t being kicked out because of bad will but are rather graduating in a sense:

‘Over time, some of these projects have proven their worth and meet the high level of standard that we expect. When we identify such projects during our periodic project review, we will move them out of the Innovation Zone.’

Before being inducted into the Innovation Zone, Binance queries projects on their propensity of suffering losses against principal capital. Projects can specify whether their losses will fall within a range of 50% or greater or less than 50%. According to Binance, proposals receiving “less than 50%” are excluded from the Innovation Zone.

Another deciding factor is the onus of responsibility if the project experiences losses. Instead of placing blame on the exchange, projects must accept responsibility for their own actions, according to Binance.

Price Action and Binance Dominance

The broader crypto market has recovered since the slowdown intensified in the final last quarter of 2022. The total market cap remains above $1.3 trillion, with minor trading losses in the previous 24 hours.

On the BeInCrypto price charts, SHIB ranks 15, while 1INCH comes in at #105. Both tokens have remained somewhat muted on the daily charts.

According to analytics from IntoTheBlock, 38% of SHIB holders are ‘in the money’ or making profits at current price levels, while 4% are breaking even. While Shiba Inu’s on-chain signals are bearish at the time of writing, it shows positive exchange signals.

As far as 1INCH is concerned, only 18% of holders are in the money at market price, while a huge 76% have incurred losses. At press time, both on-chain and exchange signals suggest negative sentiment.

In the meantime, Binance just announced a collaboration with the Brazilian Football Confederation public and appears to be making significant bets on NFTs.

CoinMarketCap (owned by Binance) places Binance as the market leader in terms of daily volume, new and active user count, liquidity, and web traffic.

However, it received an overall rating of 9.3 in the 2023 review by the Traders Union, placing it fourth internationally. Bybit, Huobi, and Kucoin all rank ahead of Binance by TU.