Changpeng Zhao explains the three keys to virtual currency success
Just over one year ago, Changpeng Zhao founded a cryptocurrency exchange that just 365 days later would be the biggest crypto exchange in the world. Getting a coin listed on a leading exchange such as Binance is the holy grail of the crypto world, almost guaranteeing success in the market. But how do exchanges such as his decision which make the cut and which do not? Here are three things Zhao looks for before adding it to the platform.
A winning whitepaper
In order to fully understand a project, you need to look at the whitepaper in detail as well as understand it clearly. Zhao and his team will also put significant work into researching the community, the source code on GitHub, as well as reading community reviews.
A good team
Having a strong team is essential to the success of any project, but Zhao is also looking for a team that has history, ability, and experience within the sector. Whilst it can be difficult to predict what way a project will go, having a well-rounded idea of who is behind it can give a very good indication.
A good number of users
You are not going to get listed on Binance if only 10 people are using your product. What is the use in offering trading pairs if there is no volume or demand? Binance will actually check and monitor the number of users and whilst there is no set benchmark, if the project is a good one and a high number of people are involved, your chances of getting listed are high.
Changpeng also was quick to dispel rumours that he charges to list coins on the platform, stating:
“What we do is we don’t negotiate, and we don’t ask for a price. The project team, when they submit an application, they tell us what they want to pay. And you can say zero, which we will accept. And we have listed coins that have said zero. You have to have a good product, a good service. I think our service is ok. To be honest, it’s not perfect. I really want to improve it. But I think in the industry, we’re kind of good compared to others. But I think the other big thing is your ethical behaviour.”
As well as these three key things, Zhao is also careful to only back legitimate projects. Aware that there is a lot of underhand and dubious things going on in the cryptocurrency space, he wants to retain their position as the most ethical and powerful exchange out there. They are careful about who they partner with because whoever he supports, gets catapulted into a popularity of stratospheric proportions.