Binance Exchange Scraps Cryptocurrency Listing Fee And Replaces It With Donation
Binance, one of the largest Cryptocurrency exchange by daily trading volume has announced that it has replaced the coin listing charges with donations. Previously, project leaders have had to spend a lot of money to list their tokens on this exchange. However, the new move will see the project leaders determine how much they want to donate for listing.
From Listing Fees To Donations
Listing coins on Binance is expected to become affordable and less costly after the company announced doing away with the listing fees. Instead, the exchange now requires project leaders to determine how much they want to donate for listing. Coin listing charges are believed to be so high that some projects are unable to raise the amount to become visible to investors.
Binance has said that 100 percent of what will be donated for listing by coin owners will go be spent on charity. The company has said that it will publicly reveal the amount of cash raised. According to the company’s CEO Changpeng Zhao, they will not set even the minimum amount to donate. He said that their listing review process will not be affected by the amount donated.
Exchanges Criticized For High Fees
Recently, Cryptocurrency exchanges have been criticized for the high fees they charge for listing coins. Given that projects have to use these platforms to reach more investors from around the world, they have to pay these hefty fees. To make matters worse, recent studies have established that getting listed on these exchanges is not a guarantee that a project will succeed.
Changpeng Zhao has tried to address this criticism before. In August, the CEO had to come forward to deny claims by one project founder that the exchange demanded 400 BTC to list a coin. The company has been trying for some time to figure out how it will make it easy to list tokens and make them accessible to more people than how they are today.
The Move To Boost Cryptocurrency Donations
Binance has said that donations given for coin listing will be used in charity. The move appears to be pushing for the use of the virtual currencies in philanthropy. In July, the exchange involved in the launch of “Blockchain for Charity” foundation to help the UN to raise more funds for its Sustainable Development Goals. The exchange launched the foundation in partnership with Helen Hai, United Nations Goodwill Ambassador and the Malta president.
The move is also expected to be a major boost to project founders who fail to raise enough funds for listing. It will now become easy and less costly for projects to reach investors. Most project leaders will take this opportunity to present their coins to potential investors. More coins are expected to hit the market and make it easy for more people to engage in this sector.
At this time, it is difficult to tell how the other exchanges will react to this move. However, it could be logical to predict that most will consider lowering their listing fee if not adopting a similar approach as that used by Binance. It is clear that it will only become cheap to list coins going into the future.
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