Binance co-founder Yi He has provided clarification on the cryptocurrency listing process on the platform, in response to concerns following the volatile trading of Test (TST). The coin’s market cap rose to nearly $500 million before a sharp decline.

Centralized exchanges (CEXs) like Binance play a pivotal role in how crypto investors allocate their capital. Listing on these platforms often leads to increased demand and investor interest in cryptocurrencies. The main criterion for listing on Binance is return on investment (ROI), which is assessed by comparing the average price on the first trading day to its quarterly performance on other centralized exchanges.

In addition to ROI, Binance evaluates the project’s ability to innovate and attract new users to the blockchain industry. The third criterion focuses on cryptocurrencies that have made a significant splash in the market and have shown strong performance on other major platforms. These coins must have compelling technical appeal to avoid losing market share to Binance if they are not listed. $BNB