Viewpoint: Why is Binance’s coin listing dilemma inevitable?

Author: Todd Source: X, @0x_Todd

I am not afraid of offending people - "Binance's coin dilemma" is an inevitable outcome, and the redemption plan is very cruel.

1. Traditional listing vs Crypto Listing

The two most important purposes of traditional companies going public:

1. Refinancing and expanding production;

2. Endorsement;

Both are to enable companies to gain commercial competitive advantages and create more profits for themselves and shareholders.

Secondly, there are:

3. Founders and investors exit;

4. Motivate employees;

The former is a real benefit and encourages more businesses to be born in society; the latter gains business advantages by increasing employee loyalty.

Importance 1>2>3>4

This is why everyone used to say that "capital will reproduce itself", because all goals end with: making more money through business advantages.

Moreover, many companies do not even want to go public, such as ByteDance and Huawei, because they make enough money on their own and no longer need to expand their business advantages through refinancing.

The cruel fact of our industry is well known to everyone. Crypto projects, 99% of them do not make money at all.

The purpose of expanding business advantages *did not exist* from the beginning. There is no point in investing in reproduction. The more you invest, the greater the loss.

Then only purpose 3 and purpose 4 remain, that is, the exit of founders, investors and employees.

II. Benefits and obligations

Traditional listing has stringent requirements and obligations:

Before listing: There must be a strong sponsor to do the IPO. This step must at least prove that there is no big problem with the founder and the business model, let the founder know that this opportunity is expensive, and don't mess around; the sponsor also cherishes its feathers (licenses) extremely and will not use excessive tricks.

However, the problem with the Crypto protocol is that it enjoys the benefits of traditional listings: investors exit/motivate employees…

but it does not bear any traditional listing obligations:

Before listing, the project party has no sponsor, and many founders do not realize that listing is a rigorous matter. On the contrary, everyone is an anonymous project, and they do not consider future reproduction at all.

So - bribery/fraud/inflating/cheating, all tricks, of course, "should be used", because there will be no punishment!

3. No punishment

Important things should be said three times:

No punishment;

No punishment;

The project party will not be punished, the exchange staff will not be punished, and the exchange itself will not be punished.

3.1 Project party

The heaviest punishment for the project party is to be blacklisted by the exchange.

But what does blacklisting count for?

Use a classic fantasy question, if there is a red button in front of you:

A. 50% probability of getting 1000w;

B. 50% probability of never being able to press this button again;

Will you press it? You will press it 100 times right now - is this a chicken feather punishment?

3.2 Exchange employees

You can say that Binance and Coinbase have punishments for employees who accept bribes - criticism, dismissal, and even legal liability in theory.

However, it is too difficult to obtain evidence. Crypto is the most difficult asset to track in the world, and it is an asset used by even Russia, Iran and North Korea. You should know that our industry's privacy infrastructure is the best in the world:

I use Signal or TG private chat for chatting;

I use some cross-chain bridges or even coin mixers for trading;

I use some third-tier exchanges that do not require KYC for withdrawal.

Even if Interpol investigates it personally, it may not be able to crack it. How dare your internal audit department of a mere exchange say that it can solve corruption?

And the implementation of corruption is also extremely covert:

Just say a few good words inside the exchange and give a few pointers at the project party meeting.

Even if your leader is trapped in the information cocoon - choose to remain silent instead of piercing it, you have completed the whole process of bribery.

So, as Jocy said, the project team specifically bribed the KOLs that the exchange bosses followed. The Jinyiwei inside your exchange can never be solved even if Chen Lifu is reborn and Mao Renfeng is resurrected. This is an unsolvable conspiracy.

3.3 The exchange itself

Let's imagine the exchange as an entity.

A coin that drops 90% after it is launched, and then drops another 90% after one year, compared to launching a coin that is ten times higher, the former makes less money, while the latter makes more money.

Yes, you have discovered that the exchange can even make money by listing junk coins, and will not lose money.

The punishment on reputation cannot be quantified at all, and the exchange will not set up a department to specifically count the changes in reputation. It offends the leaders and colleagues, and there is no profit, so no one will do it.

So, what kind of punishment is this? The punishment for the previous junk coin is "making less money"?

Is this a punishment?

Fourth, financial disclosure

After traditional companies go public, they disclose financial statements regularly, and countless short-selling institutions and retail investors have to look at the financial statements.

For example, we all know that because PwC took the Evergrande order, it has been scolded so much that it can't take care of itself, and more importantly, PwC was fined 320 million yuan by the regulator.

However, after the Crypto project is listed, not to mention the lack of financial disclosure, it is difficult to determine the destination of the funds in the on-chain treasury.

The project party can use the money obtained from the reduction at will, and can buy luxury houses, hold yacht parties, fall in love, or even study immortality. The only certainty is that it will not be reinvested to expand reproduction.

This is the crux of the problem - after listing, there is no problem with reducing holdings/cashing out, but the problem is that after cashing out, there is no reinvestment in production, which is a blood loss cycle.

V. Solution

The symptoms are severe and the disease is deep. The only solution is: stop listing, stop listing, stop listing.

Before the Crypto project completely solves the problem of "no income at all", listing has no meaning:

The last one directly fell by 90%, which was to quickly cut all users;

The last one first pulled 10 times and then trapped at the top, which was to help smart users cut stupid users.

It's just the pot calling the kettle black, but the latter looks better, and it can be regarded as cutting by ability, so-called "giving a chance".

Warning: If the exchange continues to adopt the existing listing strategy, it is only a matter of time before it is gradually eroded or even replaced by DEX.

I would not be surprised if one day Telegram Bot gets 5-10% of BN CB and UB.

-------- Dividing line --------

Let’s enter the fantasy time: The fundamental solution: set up two sites, the main site + the community site.

【Main site】 Gradually shrink

Stop listing coins immediately. If you are more aggressive, you should gradually eliminate the tokens before delisting.

【Community Station】 Newly established

The newly established community station adopts the DEX model, that is, the registration system, and every project can be listed fairly.

I would like to ask, when have Uniswap or Raydium ever been scolded for listing tens of thousands of tokens every day?

When has Hayden Adams ever been bribed? Alpha Ray's name is fake, and no one needs to create an information cocoon for him.

It may be painful, but the benefits are:

In the future, listing on Binance and Coinbase will no longer be the exit destination of the project party; but the starting point for starting to struggle and aspiring to make awesome applications (otherwise you can't make money).

Value discovery is completely left to the community, not the listing team or investment department. The registration system can perfectly solve the problem of "why BN is always the last one".

If there is a rising star of Crypto in it, it will never miss it.

And the junk coins in it will never deceive more people through unfair means.

Looking forward to this day, this decision is great and cruel.

However, once successful, it can even reverse the trend of the entire industry in one fell swoop, stop the trend of To Binance and To Coinbase, and then give birth to a real killer app like ChatGPT.

Never go against human nature;

Never go against the laws of business.