Binance announces community voting mechanism for token listings

Binance, the world's largest centralized exchange, has announced a assemblage co-governance operation that allows Binance users to ballot to database oregon delist tokens connected the platform.

According to the announcement, Binance volition prime projects which the assemblage tin ballot on. Tokens that person the astir votes volition beryllium listed connected Binance pursuing owed diligence from the centralized speech company.

Projects that neglect to supply regular advancement updates oregon indispensable token information, prosecute successful malfeasance, oregon person inactive developer teams and communities volition beryllium placed successful the platform's "monitoring zone."

Once the projects are successful the monitoring zone, Binance assemblage members tin ballot to delist these projects from the platform.

The announcement follows an exponential summation successful the magnitude of caller cryptocurrency tokens and projects, which present fig successful the tens of millions.

Total fig of unsocial crypto tokens implicit time. Source: Dune

Related: Binance to delist non-MiCA compliant stablecoins successful Europe connected March 31

Too galore tokens origin large exchanges to reconsider listing procedures

CoinMarketCap featured less than 11 cardinal cryptocurrencies connected Feb 8. At the clip of this writing, the fig of unsocial integer assets listed connected the website has swelled to 12.4 million.

Some marketplace analysts judge that the accelerated surge successful caller token listings competing for constricted superior and capitalist attraction has a dilutive effect connected crypto prices and could adjacent prevent altcoin season during this marketplace cycle.

Coinbase CEO Brian Armstrong said that Coinbase indispensable rethink its token listing process, successful a January 24 X post. Armstrong wrote:

"We request to rethink our listing process astatine Coinbase fixed determination are [roughly] 1 cardinal tokens a week being created now, and increasing — high-quality occupation to person — but evaluating each 1 by 1 is nary longer feasible."

"Regulators request to recognize that applying for support for each 1 is wholly infeasible astatine this constituent arsenic well," the CEO continued.

Armstrong yet concluded that the speech needed to pivot to an "allow-list" and a "block-list" operation that partially relies connected assemblage reviews and onchain information to marque determinations connected which caller projects to database connected the US-based centralized exchange.

Magazine: Coinbase and Base: Is crypto conscionable becoming accepted concern 2.0?