The founder and chief executive officer one of the leading cryptocurrency exchange bourses Binance talked about what research is conducting on the site before deciding to list another cryptocurrency. The Daily Hodl writes about it.
Changpeng Zhao said in the Crypto Trader program at CNBC that their thorough study involves examining three basic principles.
“In order to learn something about the project, you need to look at the white paper, read it and understand it. You need to explore the community. See the source code for GitHub. Explore community reviews on Reddit.
But fundamentally, we always take into consideration three points.
First of all, it’s a good team. Ideally, the team should have history and abilities. It is difficult to say whether they will act correctly or incorrectly. But a team with a good story tends to continue.
Secondly, we are looking for a product. So, if you just have a concept – it’s good. But I think that Binance now no longer adds just the concept coins. The exchange is already large enough for this. If you just have a concept, you can first try to get to a smaller exchange, so we can study the effectiveness of your project.
And the third point is the users of the product. We have to check how many users you actually have. We do not set any clear limitations, such as 10,000 users in Telegram. If such a criterion exists, the project will simply try to collect as many people as possible in the group.
If you have a good product at a fundamental level, we will flood it. We do not have a contact person with whom you could discuss listing issues. People sometimes come to me and say, “Hey, Zhao, I’ll give you $20 million to add you to my coin.”
We do not need this money. We do not charge any fees for listing. You have to have a good product and a good service. I think that with our service everything is fine, although, of course, there is a lot of things that I would like to improve. But, in comparison with others in this industry, I believe that we provide quality services.”
According to Zhao, ethics is one of the main reasons for Binance’s success. When companies act responsibly, people learn about it and distribute such information.
“There is a lot of things that are dishonest in the crypto space. We want to be the most ethical and the most serious stock exchange. That’s our philosophy. We really want to protect our users. Of course, we do not declare it publicly. But people themselves understand everything. People are smart. Therefore, the information that we are responsible for the site is simply passed from mouth to mouth.
We should use our power very carefully, so we are very attentive to the projects that we add, but, as a rule, they always show good results after listing.”
Recall Binance recently celebrated its first year in the cryptocurrency exchange market and released a report on the work done in its blog on Medium.