2018-10-9 16:19 |
The world’s largest cryptocurrency exchange by trading volume, Binance, has announced that it will be making key changes to its listing fee policy. Listing fees have been a significant source of revenue generation for centralized exchanges. It will be interesting to see the response of other exchanges in light of these changes. Whether this will affect their listings revenue or pressure them to change their own policies remains to be seen.
Decentralizing Donations#Binance Listing Fee Update:
Starting immediately, and going forward, Binance will make all listing fees transparent and donate 100% of them to charity. @BinanceBCFhttps://t.co/addXONK0Ip pic.twitter.com/8WrEfnmz3V
— Binance (@binance) October 8, 2018
Binance has made the decision to donate 100% of listing fees to charity. Binance operates the Blockchain Charity Foundation (BCF). The goal of BCF is to transform philanthropy. The not-for-profit seeks to use blockchain technology to help key issues such as poverty, climate change, and economic development. BCF notes the use of blockchain technology makes the philanthropic process more transparent, tailored, and adaptive.
Free Fees?The second key point to note with the announcement is that all fees will be made transparent. There has been speculation about what it has cost to list a token on Binance previously. One co-founder claims Binance quoted 400 Bitcoin as a listing fee. Whereas other tokens have been listed for free as noted by Binance CEO Changpeng Zhao.
Zhao has claimed that the process has always been that its the company which decides what they would like to pay. This announcement makes this process official. The announcement declares that the proposing team will put forward a proposition for the amount to pay in fees. There will be no fee decided or dictated by Binance, and there will also be no minimum.
“Project teams will still propose the number they would like to provide for a “listing fee,” or now more appropriately called a ‘donation.’ Binance will not dictate a number, nor is there a minimum required listing fee.”
Whether the amount proposed by a team will affect the chances of getting listed is hard to say. It is stated in the announcement that there will be no minimum, indicating that the amount proposed will not come into the listing consideration. But a well-capitalized cryptocurrency business proposing zero fees for listing may very well hinder their chances of getting listed.
One of the more interesting aspects of this announcement is how it is going to affect the cryptocurrency exchange business. This will likely serve to increase Binance’s lead in the industry even further. Smaller projects which may have stayed away from Binance due to speculation of high fees will now likely put forward a proposal for listing on Binance. Changpeng Zhao has indicated that factors such as the strength of the team and the business offers are far more important in the listing decision than fees. This has a double benefit for Binance. It will increase the interest even more in their exchange while decreasing the revenue of competitors.
Binance Decides to Donate 100% of Listing Fees was originally found on [blokt] - Blockchain, Bitcoin & Cryptocurrency News.
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