Binance Initiates Small and Mid-Cap Project Support Program
Date: 2024-05-21 Author: Gabriel Deangelo Categories: BUSINESS
Cryptocurrency exchange Binance is actively addressing the issue of having a significant presence in the token market with a low capitalization to fully diluted value (FDV) ratio. In response to this challenge, the platform is launching an initiative aimed at supporting small and mid-cap projects by providing them with access to key resources and tools.
Binance Research: Low Supply Token Report
Binance recently published a research report titled “Low Float & High FDV: How Did We Get Here?” It details the negative impact of new tokens with low circulating supply and high FDV on the cryptocurrency industry. The analysis showed that such tokens create instability and undermine investor confidence.
Small and Medium Project Support Program
To create a healthier and more sustainable market environment, the Binance team decided to launch a program to support small and medium-sized projects. This initiative is aimed at helping tokens with a large supply for users and low capitalization relative to competitors. The goal of the program is to make it easier for such projects to access listings, the Launchpool and Megadrop platforms, and provide other development opportunities.
Conditions of Participation in the Program
To participate in the program, developers must prove that their product has a sustainable business model and an organic community. Among the main conditions put forward by Binance are the following:
- Small or medium project valuation: Projects must have a reasonable market capitalization commensurate with their current development.
- A significant number of tokens are reserved for users: Projects must ensure that tokens are available to a wide range of users, not just a limited number of investors.
- Moderate allocation of tokens during Token Generation Events (TGE): It is important that tokens are distributed evenly and do not create excessive pressure on the market.
- Good Product Market Fit (PMF): Projects must demonstrate that their product is marketable and has potential for growth.
Application Process
Eligible projects can apply to participate by filling out a special form and submitting it to Binance representatives. This will allow them to take advantage of the platform’s support for further development and reaching a new level.
Introduction of New Features
In addition to the new support program, Binance is also continuing to develop its services. For example, the spot copy trading function was recently launched, which expands the automated trading capabilities of users.
Binance's initiative to support small and mid-cap projects aims to create a more stable and transparent market environment. Thanks to this program, promising projects will receive the necessary resources and access to important platforms, which will help them grow and develop in the competitive cryptocurrency industry.
