Binance Launches the ‘Innovation Zone’ to Justify DeFi FOMO Listings
Leading spot exchange Binance has created an “Innovation Zone” to list newer tokens.
“The team has created the Innovation Zone, which will allow users to trade newer token offerings from the comfort of their Binance account, while at the same time protecting less suited users from being exposed to the “risk” that comes with trading them,” wrote the CEO Changpeng “CZ” Zhao on Monday.
Whatever this means, you ask? Just that Binance will list all the DeFi tokens as fast as it can, as it has been doing.
The Innovation Zone was introduced along with the listing of SUN, Justin Sun’s DeFi venture.
What can we do?
The clarification came in the light of the fastest listing of UNI token by a centralized cryptocurrency exchange.
As we reported, exchanges rushed to list the highly anticipated governance token of DEX Uniswap. While Coinbase, Poloniex, FTX, Kucoin, OKEx, and Huobi all jumped in, it was Binance that was the first to induce the FOMO listing.
It wasn’t the first time either, the SUSHI saga earlier this month pointed many accusing fingers on Binance as well.
At that time, Zhao tweeted, now deleted, that if they don’t list DeFi coins, “traffic goes to other exchanges, and we become … obsolete. We provide access to liquidity; we don’t force you to buy.”
As the DeFi craze continued to roar, exchanges continued to take advantage of this opportunity by listing these DeFi tokens as fast as possible despite having a framework in place that requires significant and diligent efforts to review a project before listing.
CZ says so himself this time, “We don’t list every coin under the sun. We have a selection process that is often viewed as overly strict, especially by project communities that haven’t been listed yet.”
But with the DeFi sector so hot now, Binance has the dilemma of listing the token quickly or wait until the project is proven.
We’ll Continue to list DeFi coins!
According to CZ, unlike 2017, Binance is “bigger and has a wider user base” now. Not to mention, getting a listing on top exchanges is a time consuming and hard process with many, like Digibyte, complaining about exchanges asking for a listing fee.
The tables have turned for sure.
In the latest announcement, CZ argues that not only Binance needs to “stay competitive” by listing popular coins, but it is also hard to find what is good or bad as everyone's definition is different.
“So, in keeping on-trend and delivering what our users (you) want, we (Binance) will continue listing DeFi coins,” he said.
Also, trading on DEX requires a “high degree of capability and understanding.” With Innovation Zone, Binance wants to provide you a “safer space for accessing newer tokens,” which have higher volatility.
You also don’t have to remember your password/seed phrases or suffer the loss in case of a wrong transaction as CZ will take care of it.
So, how exactly does this zone work?
If in the event of incurring losses, you answer it is your fault, and you are responsible because “it was a choice that you alone made” and the likelihood of incurring losses to your principal capital in the zone is less than 50%, you get a green light to trade.