If launched today, Bitcoin would likely not be listed on Binance, the world’s biggest cryptocurrency exchange by volume — according to its listing guidelines.
Getting Your Foot in Binance’s Door
Getting listed on the world’s biggest exchange is the holy grail for any coin that wants to be taken seriously.
At the same time, Binance has been at the receiving end of criticism for charging exorbitant listing fees for new tokens. Bitcoinist reported how Expanse founder Christopher Franko claimed Binance asked for 400 BTC ($2,600,000) to list his altcoin token.
Meanwhile, Binance CEO Changpeng Zhao clarified that his exchange does not list ‘shitcoins.’
In fact, getting listed on Binance is an arduous and expensive process, though the fee is “really not the key factor,” according to Zhao. “There is a 98% chance you won’t hear from us after you submit your application. This is the norm.” He stressed that “we like coins with a proven team, useful product, and large user base.”
In addition, Binance’s guidelines, updated August 12, reiterate that submitting the form is the only way to get your token listed. “We typically require the project founder or CEO to fill out the form,” writes Zhao. “Why? If there ever is a bug with your wallet, a fork or double-spend in your blockchain, we need to talk to a key person.”
Indeed, hacks, cyber attacks, bugs and general errors continue to plague novel low market cap coins. Verge, for example, has experienced several technical issues this year. Such emergencies put users’ funds at risk and thus, close communication between a supporting exchange and the coin’s development team is crucial.
Ultimately, Binance says that at the heart of their listing process is the aim of protecting users and investors.
If Bitcoin Were to Launch Today
Granted, any type of anomaly goes out the window if some authority must fill out the listing form “completely and comprehensively.”
Hence, it is ironic that the most successful cryptocurrency, Bitcoin 00, would likely not get listed for the very reason that made it the most successful: a creator who disappeared.
Also, good luck getting Zhao to read your whitepaper. “Don’t send me your white paper. I don’t do initial reviews” he writes.
Therefore, if Satoshi were to launch Bitcoin today just like it was a decade ago — its chances of landing on Binance would be slim for one simple reason: who would fill out the application? And who would Binance communicate with in case of any issues? Satoshi? One of the Core developers?
“If you have a decentralized cryptocurrency with a founder that disappeared you can never get listed on exchanges,” wrote Twitter personality WhalePanda. “This isn’t just for Binance, this is pretty much for any exchange now.”
It’s interesting to see where we’re coming from. If you have a decentralized cryptocurrency with a founder that disappeared you can never get listed on exchanges.
This isn’t just for Binance, this is pretty much for any exchange now. pic.twitter.com/qm8Kmx39LR
— WhalePanda (@WhalePanda) July 26, 2018
At the same time, there are other factors that would probably put it into one of the better categories: Very good, good, average, and bad.
If Bitcoin indeed has the same “strong team” of talented developers, a working product, a large user-base, and no ICO launch but organic growth via mining and proof-of-work, it would likely incur a smaller fee than your “average” token.
Bitcoin’s Immaculate Launch Unreplicable
On the flipside, new cryptocurrencies aspiring to become the ‘next Bitcoin’ will not be able to replicate Bitcoin’s immaculate launch. Creators of new tokens will find it irresistible to get listed. Investors will demand it. Meanwhile, creator(s) will be forced to reveal their identity particularly as calls for regulatory scrutiny grow louder.
In other words, while getting listed on Binance is hard, replicating Bitcoin’s organic launch — at a time when crypto exchanges didn’t even exist — is next to impossible.
“Bitcoin changed the game,” Bitcoin & Markets podcast host Ansel Lindner commented on Twitter.
Trying to compete with bitcoin is like trying to compete with the dollar playing by their rules. Very difficult.
In the meantime, ICOs can expect to pay a nice chunk of their coins as an insurance listing fee — a measure to dissuade scams — though the exact amount is decided by the project itself.
“For Binance, we hold more of a black box, subjective model. Our listing process is by no means perfect, or anywhere close to it. We are still constantly improving and evolving it,” Zhao adds.
Would Binance list Bitcoin if it launched today? Share your thoughts below!
Images courtesy of Shutterstock, Twitter