In the past, Binance typically listed one or two coins, and their market capitalization was generally over 100 million. A market cap over 100 million indicates that these coins have already been chosen by the market on-chain, representing high-quality coins. There's nothing wrong with listing these coins. However, a problem arises because the market cap is too high; when good news regarding listings is realized, people lack confidence in reaching even higher caps, which can lead to a stampede effect.
Now, Binance is listing four coins at once, with market capitalizations mostly around 50 million. From the perspective of market cap, it seems that these coins have not yet been fully chosen by the market, and whether these listings can succeed remains an unknown.
However, this approach to listing coins has two advantages:
1. Not missing out on high-quality coins
Because the market cap is low, I can list several more coins, allowing for a portion of them to fail to gain traction without missing out on high-quality coins. Those high-quality coins that do succeed can reach market caps of 200 million or even higher. Additionally, it is clearly more challenging to grow to 200 million after already being on-chain than to grow to 200 million on Binance.
2. Limited downside
Since the coins listed are all low market cap, the downside is definitely more limited compared to high market cap coins.
Binance has also created a channel for new coins, which is essentially freeing up positions that have already been confirmed as low-quality coins for these new low market cap coins that have a certain probability of succeeding. One is 100% low-quality, and the other could potentially be high-quality—a simple choice.
In fact, this method of listing coins means Binance needs to do more than before. Now, they need to actively select more potential stocks instead of waiting for the market to provide a high-quality option. This mechanism can invigorate internal resources and promote a survival of the fittest scenario.
Overall, this is a positive development, giving more coins the opportunity to build well. High-quality coins will definitely be discovered for their value, transforming from potential stocks into high-quality options.
Just analyzing randomly, is there any reasoning in this, Big Brother and Big Sister?
