The Binance platform is the largest platform for trading digital currencies in the world in terms of daily trading volume, and accordingly, when announcing the inclusion of a digital currency in the Binance platform, holders of the currency and the management of the currency project are greatly pleased and the currency rises often and vice versa when announcing the deletion of the currency and the currency is subjected to a sharp decline in Often holders of the coin and its project management grieve.
Recently, "CZ" CEO of Binance, hinted that he may start deleting currencies with a lower trading volume.
Digital currencies involved in the deletion process from Binance:
In an interesting topic on Twitter, it suggested encrypted currency analyst and rolling "RookieXBT" write off all digital currencies Pennans that no more than the volume traded daily for 10 Bitcoin.
Whether or not he was expected, the CEO of Binance shared the matter, providing a hint that he might actually consider doing so.
Where he told "CZ" by saying:
I think it's a good idea.
If you are a listed currency on Binance and still do not have a trading volume, then ...
Perhaps "CZ" indicates that there is something inherently wrong with Binance-listed cryptocurrencies that fail to generate significant daily trading volume.
Of course, there are two sides to this debate.
Some users believe that the benefits of a currency should not be evaluated based on the volumes it generates in cryptocurrency exchange platforms.
People argue that they own a digital currency in the long run and don't really care about daily volume.
This is certainly possible and correct.
The other side of the story:
Certainly, the advantages inherent in a cryptocurrency are not related to its inclusion on a particular trading platform, be it Binance or others.
So, a logical question arises that:
Why would someone care whether or not the digital currency is listed on a popular trading platform? Assuming he is passionate about the currency, its project, and the technology it brings?
This is where things take another turn.
At this point, it becomes fairly clear that this offering is not standing on solid ground because people are clearly concerned about the price, and maybe more about the technology itself.
If an investor has been holding a cryptocurrency for the long term, listing it on Binance shouldn't make a difference.
But this is not usually the case as people are seldom interested in technology despite what they might call it.
The main concern is that if Binance decides to mass-delete low volume cryptocurrencies, it could cause even greater market turmoil due to what is known as the "Binance Effect".
As we mentioned at the beginning of the article, when a cryptocurrency is listed in Binance, it usually sees a significant increase, and the reverse is also true.
Last year, Binance wrote off Bitcoin SV, dropping the coin by more than 10% after news of the deletion broke out.
This is just one example.
In any case, there is no official confirmation of what Binance will do and will it actually delete the currencies that have low trading volume?
The coming days will carry the definitive answer for sure.
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