From the results, it seems that the limit-up model introduced by Binance has not achieved the expected effect and remains a feast for a few people. In terms of supply and demand, aside from a small number of newcomers who do not calculate valuations and research rules, the vast majority of users participating in Launchpool and receiving tokens will not sell at this price, resulting in sell orders always exceeding buy orders.
Additionally, based on observations over the past few days, it is still those scientists who can make money on $RED. Almost every day at 18:00:00, nearly 10M buy orders are placed at the limit-up. Aside from the scientists who have the capability to manage 2000 accounts and buy at a speed that is almost impossible for humans to achieve, there is no other explanation.
These teams of scientists focused on new offerings are likely the culprits behind the astronomical prices every time a new coin is launched on Binance. If we cannot effectively suppress scientists from using technical means to participate in new offerings, the K-line of Binance's new coins will forever be high open and low close.
To change this situation, we must start by suppressing the means by which scientists participate in new coin offerings. I have the following ideas:
1. During the first 3 days after a new coin goes live, API trading permissions for new coins will not be provided to users except for market makers, and some restrictions will be placed on large inflows.
2. The current limit-up mechanism can be retained, but users placing orders during the pre-market phase will have to undergo facial verification, and only upon passing the verification can they place orders, ensuring that it is a genuine user operation.
3. If a buy order triggers the limit-up, cancel the transactions in chronological order and adopt a distribution model. Sellers can cash out directly at the limit-up price, and after the limit-up, all sell orders will be distributed to all buyers at the limit-up rate every 5 minutes based on the proportion of pending orders.
The reason for adding so many rules:
-Secondly, to prevent the limit-up phase from being abused by scientists using multiple accounts, allowing them to easily manipulate many accounts.
-Thirdly, to prevent scientists from bypassing limits using multiple accounts; currently, as long as the IP and device are stable, Binance accounts will not trigger facial recognition. Many scientific teams have substantial funds; they directly use low-priced real Apple devices with SIM cards. For them, limits only slightly increase their expenses.
-Firstly, to prevent scientists from using fake accounts to gain a large amount of benefits, while real retail investors can only helplessly lag behind due to their slow speed.
In fact, the introduction of the limit-up mechanism is a very good change, and Binance genuinely wants to address the issue of new coins peaking at launch. However, if the scientists who disrupt the rules are not dealt with, introducing any model will be difficult to be effective; these people always turn positive changes into a joke.
The end result is that the money is taken by the scientists, while Binance bears the blame, and Binance users who are enthusiastic about secondary new coins unfortunately become their ATM.
