Binance, one of the world’s largest crypto exchanges, has clamped down on altcoin projects with low market capitalization. The exchange resorted to this method in order to increase liquidity protection and protect users against risks.
Speaking at Binance, a Binance official said the following about this move:
“Our team has reached out to several altcoin projects listed on Binance for our ongoing practice in risk management. We stated that these tokens have low liquidity and market capitalization, which poses risks.”
With this move, the leading exchange wants to be an intermediary for its customers to trade without risk. Binance, on the other hand, encourages projects on the liquidity of the tokens listed on its exchange.
According to uncertain information, the Bitcoin exchange made another request from crypto projects. Allegedly, the exchange management is asking altcoin startups to transfer 5% of circulating tokens to the Binance Savings tool.
Got forwarded me this
Dev teams and MMs receiving this message from Binance. Shocking if true
Liquidity is drying up pic.twitter.com/5NpiQPd5ye
— Napgone (@napgener) August 23, 2023
40720
