Blockchain is often praised for its transparency, but centralized exchanges largely remain a black box. On Friday, June 20, Binance announced a series of new features aimed at changing that by bringing greater transparency to its platform.
An update will allow users to see how many tokens of a project are locked, providing insights into the transfer schedule. This helps verify that project teams cannot immediately sell off their stakes.
Another important addition is the token concentration indicator. This indicator will show how much of the token is controlled by the team, including tokens held on Binance, which were previously hidden from public view.
Binance Hopes to Set a New Standard for Transparency
Yi He, co-founder of Binance, stated that the changes were made in response to user feedback. The company hopes that the new features will establish a standard for transparency among centralized exchanges and encourage wider industry adoption.
“We are committed to our users and continuously strive to set the standard that promotes transparency in the market for them. Our Locked Addresses and Concentration Indicator features are examples of this and our response to the community's demand for greater transparency and better tools to understand the tokens they are trading. Through token transparency and user education, our goal is also to promote market integrity and help the industry grow in a more sustainable way.” He said.
Token concentration and locked data are crucial for assessing the tokenomics of a project. High concentration increases the risk of sell-offs or withdrawals, while locked tokens help align the team's incentives with long-term development.