In a new live stream on Periscope, Binance CEO Changpeng “CZ” Zhao tackles current issues, including confusion around coin delistings and how the process works.
CZ says that delistings have to be done if and when a cryptocurrency project falls below standards. Basically, a project needs to show consistent value. Without value, Binance can no longer support it. CZ detailed how the exchange values value.
- If you have a large user base, you have utility value.
- If you don’t have a large user base, you need a product.
- If you don’t have a product and your ICO was a long time ago, that’s not a good thing.
CZ says it’s a bad sign when a team does not respond to inquiries about the status of project.
“We don’t give early notices for a delisting. So, for example, we don’t give three warnings. First warning, second warning, third warning. Because when we do that, the project team will have much earlier notice on when they will get delisted and some of the unethical teams may even short their own coins. So they will dump their own coins first.”
In the process of delisting, Binance hurts itself as well as anyone who holds the coin. But CZ says the process is necessary. And rigid. There is no debate or discussion. Once Binance has made the decision to delist, that’s it. Despite grumblings from a development team, Binance doesn’t respond to requests to discuss the decision.
“We just take the heat.”
— Binance (@binance) March 5, 2019
CZ moves on to Binance Launchpad, the company’s initiative to help startups raise money, credibility, exposure and awareness. Most projects from Launchpad will also stand a good chance of getting listed on Binance, boosting liquidity. The ultimate goal is to help good projects.
Other highlights from the live stream
- The Binance haters, and why CZ avoids them
- Support level for customers and the Binance help desk on Twitter
- Online and offline events to stimulate the ecosystem
- Pricing Binance Coin and other cryptocurrencies
- Binance Chain, creating tokens and key strategies to grow the ecosystem
- Accepting applications for interns in nearly every department of Binance
- Working to resolve the issue of the Binance iOS app, which was removed from the App Store
- The future of security tokens on Binance
- Singapore fiat exchange
CZ says Binance Coin (BNB) is not a security. It’s a utility token.
“There’s so many places you can use BNB. I will not iterate all of them. But you can use it to buy airplane tickets, hotels. You can use it for collateral for loans. You can buy a number of things with it. We focus on increasing utility of BNB. This is why it’s really hard to calculate the value using a formula.”
“I think right now the BNB token probably has more use cases than most other coins out there. And we continue to build.”
The goal, he says, is to push the coin forward, expanding its use cases, and to position it as the native cryptocurrency on Binance DEX (decentralized exchange) where transactions will take one second.
CZ makes a strong pitch to developers to move to Binance Chain, promising the full marketing weight of the Binance team behind new tokens along with subsidies. To sweeten the deal, CZ says projects that migrate will also be prioritized for consideration for Binance Launchpad and a listing review.
“Once you move to the Binance Chain, you will get Binance as a partner. We will help you to do marketing. We will get the Binance marketing engine working for you. We’ll help you reach our audience, which is a large audience, very active as well. You can associate your brand with our brand credibility. You become a Binance long-term partner. And early partners will get a disproportionate amount of benefits because we will spend time to help the early projects that migrate to Binance Chain. So start early.”
CZ confirms that there are already eight ERC20 token projects that have migrated to Binance Chain.
As for the next killer app, he says he’s not sure but that retail investors are key to crypto adoption.