Binance Launchpool Phase 64 - RedStone @redstone_defi

This phase of Launchpool introduces two highlights

1️⃣: Supports mining with USDC trading pairs

2️⃣: Added pre-market trading limit (this is friendly for retail investors, and this feature will be analyzed below)

🔶 Project Introduction - RedStone Positioning

RedStone is an oracle project focused on providing price data services for multi-chain ecosystems. Supporting both EVM and non-EVM chains is RedStone's core competitive advantage.

🔶 Interpretation of Binance Limit-Up Feature:

This limit on pre-market trading for the first three days can be understood as a circuit breaker mechanism commonly used in the stock market to avoid large market fluctuations. The original intention can be understood as being friendly to retail investors, why is that❓👇

When new coins are listed on Binance, speculative sentiment often leads to drastic price fluctuations or even “pump and dump” situations. Additionally, pre-market trading typically has lower liquidity compared to spot trading, making it easier for large investors to manipulate short-term.

By gradually relaxing the price increase limits (100% → 200% → 300%), limiting price fluctuations reduces pump and dump scenarios and provides retail investors with opportunities through purchase limits, while also providing a buffer for smooth transitions to subsequent spot trading.

🔶 Summary:

Especially remember the last Binance AMA where the host sincerely discussed with everyone: how to control the stability and development issues of projects listed on Binance.

In recent years, Binance has put a lot of effort into compliance; every important decision must be made under compliance conditions, while not interfering with project parties and protecting retail investors is indeed a challenge. Many people have proposed very good suggestions, such as regularly disclosing project information and conducting regular space reviews of projects.

But undoubtedly, the introduction of the pre-market limit-up feature for RedStone may be the most direct and effective method. It can stabilize fluctuations in the short term, protect retail investors, and comply with regulations. Binance has indeed worked hard to protect retail investors.

This attempt by Binance is said to be merely experimental; it remains to be seen whether there will be new challenges in the market (such as reduced liquidity, etc.).

In short, Binance's strategy of protecting retail investors is intended to be friendly. At least I dare say, there are not many exchanges that do everything possible to protect retail investors; Binance is one of the few that has done the most.