In recent discussions, many have been debating which cryptocurrencies should or should not be listed on Binance. Let me clarify this point: the cryptocurrency market operates on a free-market principle. The liquidity and trading volume across various exchanges, whether centralized (CEX), decentralized (DEX), or hybrid platforms, are all part of a shared ecosystem. Binance listing or not listing a project doesn’t determine its existence or trading volume. Even without Binance’s involvement, these projects continue to thrive, with liquidity being redistributed across the entire industry.
Additionally, when VC-backed projects unlock their tokens, meme coins, localized tokens, and even opportunistic schemes continue to flow throughout the market. With potential ETF approval, funds from traditional financial markets will also pour into the crypto space, further boosting liquidity. Regarding venture capital (VC) investment, it’s worth noting that VCs often raise funds from Limited Partners (LPs) with long lock-up periods, sometimes spanning 7 years. After a project’s Token Generation Event (TGE), it can take at least a year before VCs are allowed to sell their holdings. Some VCs might face losses in the crypto space, and the liquidity provided by them may be affected, but their investments still play a key role in fueling projects.
For investors, understanding a project’s tokenomics, including token use cases, release schedules, holding ratios, and initial circulating supply, is crucial for making informed decisions. Cryptocurrency prices and governance structures are influenced by the project team’s actions and not by any external factors alone, and there’s no one-size-fits-all answer for success.
With the rise of decentralized finance (DeFi), the industry has gained more liquidity and freedom, which complicates the ability of centralized exchanges to create uniform rules. However, this freedom is what makes the crypto market so attractive.
Before investing, always Do Your Own Research (DYOR) to evaluate the
fundamentals of any project thoroughly.
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