When DEXX was stolen, I was thinking that in order to balance security and experience, it would be most appropriate for Binance to make its own custodial wallet bot for meme coins. Non-custodial wallets have the disadvantages of being easily clamped by mev, high cross-chain fees, the need to prepare gas for each transaction, the inability to set limit orders, and a high transaction failure rate. Custodial wallets can solve these problems, but the only disadvantage of custodial wallets is the worry of running away, so Binance is the most suitable for custodial wallet bot. This product update can be called Alpha2.0, and we can see the continuation of innovation like launchpad from Binance. After all, this product needs to coordinate various departments to make it, which will affect the cake of some departments. It needs to be promoted from top to bottom, and we can see the courage and product innovation of the top management.
Binance is very similar to Tencent. One has the largest traffic in the cryptocurrency circle, and the other has the largest traffic in social media. It has a strong ability to divert traffic to new products, but it still cannot do a good job in web3 wallet. This is the same as Tencent's lack of technical innovation. Tencent is also unable to do a good job in Weishi. While recognizing its own disadvantages, if it can play the advantages of its own ecology, it can still achieve great success. Why must Binance do it? Binance has a huge amount of user funds, and the security of funds has gained trust in fud again and again, which is also a huge benefit to Binance:
Some users are not good at using DEX, so provide CEX users with channels to purchase tokens on DEX.
If there are popular tokens on the chain, users will have to transfer CEX funds to the chain to participate in activities, which will cause capital outflow from the platform.
You can use CEX liquidity and achieve no cross-chain fees. Gas fees do not need to be deducted on the chain, and you can use it first and pay later. With Binance's trading volume, transactions can be matched internally by CEX, and transactions are free of fees (currently there is a 6-month fee-free subsidy).
The problem with Binance before was that it was already listed on the spot, and the process of listing on the spot was long, which would cause a huge loss of trading volume and was easy to be criticized. After Alpha2.0, this is the real Science and Technology Innovation Board
However, there are still some problems or points that need to be considered in Alpha2.0:
The complete trading path should be that users first discover a token to form a trading motivation, and then trade. The KOL narrative shouting of the X platform and the popular token ranking/smart money identification of gmgn both provide users with channels to discover tokens. Binance is not doing well in the first step, which is why Binance is doing square, but the two platforms are not linked at present. If users can shout orders on the trading page, it will also trigger the user's trading motivation. And only providing trading functions cannot retain the funds of people who are good at on-chain trading.
Judging from CZ's order for mubarak, he is mainly promoting the meme on BSC, trying to kill two birds with one stone. At present, it seems that trading can choose two modes: high success rate and low slippage. The mev clamp on BSC has been criticized. It is speculated that the high success rate and low slippage may be achieved with the support of suppliers. How long can this part of the investment last? In the end, it still needs to rely on its own technology to solve it.
With Alpha2.0, whether or not to be listed on Spot is not so important. Currently, the token list of Alpha2.0 adopts a manual coin selection mechanism. Manual coin selection represents the perspective of the farmer, who should have the coin selection vision like moonshot, or have automated coin selection capabilities. It is necessary to filter out tokens from insider trading, conspiracy groups, and transaction manipulation to make the tokens on Alpha2.0 more fair.
Summary: The benefits are huge. It is difficult to compete with OKX Wallet head-on. By making good use of the advantages of its own ecosystem, it can achieve a curve overtaking. However, it still needs to improve its technical strength and form a complete trading path. Other exchanges such as OKX are expected to imitate it, so in the end, it is still the product experience that is at stake. If Binance does well, it can use this function to bring new users to Binance and further seize the market. If it does not do well, it is just to serve current users and retain them well.
