Binance to introduce community vote for listing and delisting tokens

Binance is set to introduce a new mechanism to list and delist tokens, introducing a vote for eligible wallets holding a minimum of 0.01 BNB to vote. The voting mechanism will be used for some of the exchange’s new listings, reflecting the community support for tokens. 

Binance announced the new mechanism for listing and delisting on Friday, which takes into account the community’s vote.

Prior to the announcement, Binance often considered informal community votes on social media when choosing new assets to list. However, social media popularity is not enough for a listing decision, as Binance has tightened its standards for adding new trading pairs. 

Binance repeated its readiness to find projects with value to offer its community. The new listing rules will also come with additional disclosures to potential investors. Binance will disclose any project’s dedicated listing budget and will distribute some of the token liquidity through airdrops. The exchange will keep its policy of no explicit listing fees. 

After getting acquainted with a project, users will be able to ‘Vote to List’ or ‘Vote to Delist’, giving the communities a stronger voice. Skeptics see the voting mechanism as potentially open to gaming from organized communities or cabals. Others are concerned projects may use bots or Sybill wallets to vote in favor and gain a Binance listing. 

Binance will also give an advantage to tokens that perform their Token Generation Event (TGE) exclusively through Binance Wallet. Those projects will become a part of the Binance Alpha Observation Zone.

Users will vote on pre-selected projects

Binance said it still reserves the right to select the tokens for a listing or delisting vote. The exchange will pick projects from the Alpha Observation zone to include in the voting pool. Eligibility is for all users holding over 0.01 BNB. 

Some eligible projects that have launched their tokens will have the ability to self-nominate, with details to be announced later. 

Projects to delist will be taken from Binance’s Monitoring Zone. The criteria include lack of product development, inactive communities and teams, lagging updates, and token supply inflation. Projects that pose a financial risk will also be included in the Monitoring zone, as well as all future tokens that fail to disclose relevant information. 

No tokens are guaranteed a path to listing, and Binance will continue to monitor and vet all tokens for signs of demand and activity. 

Binance gives GPS token a Monitoring tag

Binance announced its new rules for listing tokens after a recent incident with the price of the GoPlus Security (GPS) token. 

Only three days after its listing, GPS was given the Monitoring tag, due to fears of deliberate price manipulation. GPS started its price discovery with losses, similar to other newly listed projects on Binance. This time, however, the exchange operator noticed more deliberate selling moves.

Soon after that, GPS started rallying with sudden buying interest, reflecting its high volatility warning. Later, it became clear a market maker rapidly sold 70M tokens, causing the first deep correction. The market maker managed to drain up to $5M in liquidity from the market, hurting the project’s reputation on Binance. 

GPS was previously distributed as a highly reliable asset, with an airdrop for BNB holders. However, the market maker did not put up the matching buy orders, resulting in losses for early traders. Binance has also suspended the account of the market trader and placed it under investigation.

Despite vetting GPS and promoting the project, Binance still could not control third-party actions. However, the event may make Binance even more conservative in picking its next tokens. 

Binance’s stricter rules for listing and delisting also came after launching the RedStone (RED) token airdrop, with a last-minute change in distribution. RED also tanked after listing, starting out at $0.86 and sinking to $0.64. Most meme tokens or project assets listed on Binance have lost value over time, as early holders used the liquidity to sell.

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