Binance, a leading cryptocurrency exchange, is making changes to its procedures for listing tokens. This move is aimed at protecting investors from potential scams and fraudulent schemes that have caused financial losses in the past. According to Bloomberg, Binance is enhancing its listing criteria to prevent dubious crypto projects from being listed on its platform.
One key change involves the “cliff period,” a timeframe during which a portion of the total coin supply is locked in a smart contract. Binance has increased the minimum cliff period to one year, up from the previous maximum of six months. This adjustment is designed to ensure that market makers have enough tokens to provide liquidity on the platform.
In addition, Binance is reportedly allocating a larger fraction of tradable tokens to market makers to further enhance liquidity. These changes are part of a broader initiative to improve regulatory compliance and investor safety following a challenging year for the exchange.
In 2023, Binance faced legal challenges, including a lawsuit from the U.S. Securities and Exchange Commission (SEC) and a settlement with the Department of Justice (DoJ) totaling $4.3 billion. Co-founder and former CEO Changpeng Zhao resigned in the wake of these events.
Overall, these changes to Binance’s listing policies are aimed at protecting investors and fostering deeper commitment from crypto projects listed on the exchange. The exchange emphasizes that it does not impose lock-in periods on listed projects, allowing them to independently decide their token vesting schedules.