Top Exchange Binance Launches Market Maker Program to Entice Crypto Whales
The largest crypto exchange in the world, Binance, has recently announced via its latest blog post the launch of a new product that caters to “whales”, who are the users known for moving large amounts of crypto around.
According to the blog post, users whose monthly volumes are higher than 1,000 BTC monthly are immediately able to join the new program. Now, the service will start a trial period which will last two to three weeks.
What Is The Binance Market Maker Program?
This program, which is limited to spot markets on the international version of the site, opens up the Market Maker Pair List, which will be periodically updated. Members of this privileged list will have higher API limits and be able to trade with a reduction in fees.
The participants will receive a composite score that will track their performance on the exchange and, depending on their rankings, they will receive different benefits.
According to the exchange, the main characteristics that will be tracked are volumes, total order size, the duration of the orders, bids and offer spread and weight-adjusted on specific pairs, too.
A Strategy To Attract Whales
The strategy is clear. Binance is working towards attracting the whales. Not only does the company wants to be an attractive marketplace for these profitable users, but it wants them to keep trading. This way, they will get more benefits. By doing this, the company would also increase its liquidity, which is something that all exchanges want.
OKEx started a similar strategy back in April, so this can probably be considered Binance’s response to it.
— Binance (@binance) September 29, 2019