Today, Binance launched 4 tokens, representing a new path for Binance in listing tokens. For many MeMe or project parties, this is a completely new approach. I want to analyze this from the data.
1 Community voting data analysis
From the final results, total votes: 185K, total participants: 119K. Since each person has 5 votes, the actual average votes per person were only 1.5.
Binance's first step is to exclude invalid votes, including the following 4 situations.
1) Fraudulent activities (e.g., fake accounts, deceptive actions)
2) Bulk operations (fake voting through IP/device mining)
3) Exploitative behavior (tampering with Binance's code, system, or API)
4) Illegal/harmful activities (fraud, scams, or malicious efforts to attract votes)
And how many invalid votes were excluded? 12K, accounting for only 6% of the total votes. This indicates that Binance's exclusion of fraudulent activities only removed 6%.
So, what's interesting?
The second step excludes votes from users who do not hold 0.01 BNB.
Because on the voting page, there is a very prominent reminder that you need to hold 0.01 BNB during the voting period. In fact, 0.01 BNB is only worth $6, which is not much of a requirement for ordinary users.
However, it was found that many votes were deemed invalid due to the 0.01 BNB holding requirement. According to Binance's published results, there are two methods.
Method 1: Hold 0.01 BNB throughout the entire activity period.
In fact, according to the rules written on the voting page, it is required that the account holds 0.01 BNB throughout the entire voting period, so Method 1's statistical method is the one that meets the requirements. However, the result from Method 1 was very poor, with only 62K valid votes, which is only 33% of the original. This means that Binance only excluded 6% of votes from accounts engaged in fraudulent bulk operations, etc. A small requirement of 0.01 BNB has excluded 67% of the voting numbers.
After excluding invalid votes, the vote counts are arranged as follows:
MUBARAK: 8,275
BID: 8,082
BANANAS31: 7,937
TUT: 7,069
BROCCOLLI (CZ's dog): 7,003
SIREN: 6,547
KOMA: 6,484
WHY: 6,165
BROCCOLLI (Broccoli): 5,034
We can see that these 4 projects on Binance are in the top 5, which means that according to the voting ranking, all except BID are listed.
It could be that Binance saw too many invalid votes and then counted Method 2. Method 2: Calculate from the time the vote is cast, holding 0.01 BNB all the way. The scenario for Method 2 is that your account initially has no BNB, and then when voting, you realize this requirement, so you go buy some. But even in this case, valid votes are still only 113K, excluding 35%.
The rankings from Method 2 differ significantly from Method 1, and the final token listings correlate greatly with the rankings from Method 2. Therefore, Binance should use the method of holding BNB as announced to determine part of the token listing.
2 Transaction volume of Binance Alpha and Binance contract market
These two transaction volume data represent the real user intentions. Including this indicator can effectively eliminate purely fraudulent voting by pulling in large numbers of people, after all, the cost of bringing in people is not high. The following chart shows the transaction volume of Binance Alpha, which clearly indicates why the previous BID was not selected. Its trading volume is much smaller than others. Likewise, the voting quantity for Why is second, but the transaction volume on Alpha is only 879K, which is very low. KOMA's trading volume is also comparatively low.
If we also calculate the transaction volume of Binance's contract market, we can reach a similar conclusion. For the transaction volume on the 27th (as the listing on the 28th greatly affected trading volume), MUBARAK was 350 million, BANANAS31 was 140 million, TUT was 70 million, BID was 17.58 million, and BROCCOLLI (CZ's dog) was 30 million.
3 Published selection rules
Let's take a look at the comprehensive evaluation criteria published by Binance.
1) Results of community voting activities (natural votes after excluding spam activities; details below)
2) Historical performance of the token
3) Trading demand, especially in Binance's contract market and Binance Alpha platform's trading volume
4) Fundamental analysis
5) Compliance checks
6) Risk assessment
Although there are 6 rules, the fourth, fifth, and sixth rules should be the same for all MeMe. This leaves 1, 2, and 3. The first and third are easier to quantify with data. From the results, the effective votes from the community have a significant impact on the final token listing.
4 To summarize:
1) From the data, it can be seen that for this voting event on Binance, the weight of community voting is quite large. Essentially, 4 out of the top 5 valid votes were listed. Among them, BID was not listed mainly due to low trading volumes on both Binance Alpha and the contracts.
2) However, in the voting process, a large number of votes became invalid. One of the requirements is that during the voting event, users must hold at least 0.01 BNB. Although this setting may exclude some genuine users, it is very effective in preventing cheating and vote manipulation, as it is possible that project parties spend money to buy invalid votes at the end.
3) For real communities, if considering future voting for new tokens, it is recommended to hold at least 0.01 BNB in the account.
