Binance Is Hurting Crypto Investors With Rushed Scam Coin Listings, Says Crypto Whale
As the world’s largest cryptocurrency exchange by trading volume and liquidity, Binance is also renowned for responding fast to market dynamics and increasing investor trading options on its platform.
Binance lists multiple coins on most days if not all. This has also been evident in the now deflating ‘DeFi bubble,’ with Binance being on the frontline to list new projects with massive gains.
In August alone, Binance listed 15 DeFi tokens and four more in September, with some of the listings also available on Binance Margin trading. While some of the listings turn out to be genuine projects, investors often get scammed by other scam coins that rob them of millions of dollars in investments. These coins include YFI, Sushi, DFi.Money and a wealth of earlier altcoins that have Zero trading volume.
According to the popular crypto investor ‘CryptoWhale’, Binance’s rushed decisions to list more coins are harmful to both crypto investors and are a big hindrance to crypto adoption. Addressing Binance’s CEO on Twitter, CryptoWhale stated:
“You should really consider adding restrictions to the coins you add to your exchange. Hundreds of scams have been listed on Binance over the years and millions of dollars of investors’ funds forever lost.”
The investor is now calling On Binance’s CEO Changpeng Zhao, to practice more accountability for the sake of investors on Binance and for the reputation of the entire crypto space.
“As an exchange, CEO, you have the responsibility to list projects that have true potential, not just whoever pays you the most. It is very discouraging seeing this behavior. It’s another reason why new money is reluctant to join this space. “
Is Binance A Toxic Exchange?
Binance has done a great job, especially in enabling seamless crypto transactions in emerging and developing countries to increase crypto adoption. But the exchange has also been accused on multiple occasions of operating in the gray line by circumventing regulatory frameworks in different countries around the world.
As ZyCrypto earlier reported, Coinbase chose to leave the Blockchain Association as a founding member rather than work with newly added member, Binance US, which represents Binance’s presence in the US.
In response to Crypto Whale’s appeal to Binance and its CEO, another crypto investor stated that Binance has been toxic to the crypto space in 2020, acting as more of a casino than a regulated crypto exchange platform.
“I agree 100% with you on this. @binance has created a monster casino. @cz_binance and friends have actually been very toxic to #crypto in 2020.”
Binance CEO: Do Your Own Research
In his defense, Binance CEO responded, stating that people should do their own research because many projects are experimental, and while some will fail, others will succeed, and it’s up to investors to do their due diligence and invest wisely.
“A high number of projects will fail. Only a small member of projects will stand the test of time. We don’t know which ones they are. We can list just BTC and wait for 20 years to list the 2nd coin. That won’t help the industry grow. DYOR.”