Binance Futures' new coins show wealth effect, and top management may be building momentum for global layout

Recently, many altcoins have surged due to the Binance contract launch announcement. The representative currency RARE saw the highest increase of 356.5% after the contract was launched, while some other tokens soared immediately after the announcement. Binance can be said to have driven a wave of wealth effect.

In this regard, many community members said that Binance was artificially creating hot spots to drive the downturn of altcoins, and some analysts listed potential projects that were not listed on Binance contracts, trying to catch the next wave of wealth. Judging from Binance’s recent series of actions and the remarks of its new CEO, it is more likely that the top management is showing off the strength of the world’s largest exchange before expanding into the global market.

Binance Futures Announcement: Turning Stone into Gold

In the past, the Binance platform's deep listing effect was well known to investors, but in recent times, Binance's listed project tokens have also had a type of function for contract trading. According to statistics from Golden Finance, since August this year, Binance contracts have launched a total of 10 tokens. Almost without exception, each token has risen to varying degrees after the announcement.

As can be seen from the above figure, Binance has launched multiple currencies intensively since August 14, with an average of one currency launched every day. Among the currencies that launched contracts, the smallest increase was 21.50%. This is a relatively objective return in the current situation where Bitcoin is sideways and altcoins are generally falling.

Among these 10 currencies, half of them have increased by more than 90%, namely ALPACA, VOXEL, SYS, SYN, and RARE. Among them, RARE has the largest increase of 356.5%.

In the past, Binance listed tokens on contracts when a token suddenly soared several times or was a star project. However, among the 10 projects listed on Binance recently, only SUN increased by more than double before the announcement of the contract listing. The rest are mostly tokens that are already at the bottom of the market and have low market capitalization.

The market capitalizations listed above are all data after the tokens have risen, and the BRETT and POPCAT with the highest market capitalization are both popular MEME currencies. Binance has not yet given the reason for choosing to launch the above-mentioned token contract transactions, but we can see from this that Binance seems to be interested in acting as a market maker to help low-popularity and low-liquidity projects gain market attention.

At present, the wealth creation effect is good, and many tokens immediately rose after the announcement of the online contract. For example, on August 20, VOXEL rose nearly 65% ​​in a short period of time due to the news that Binance launched 1-50 times U-based perpetual contracts; on August 22, ALPACA rose nearly 65% ​​in a short period of time due to the news that Binance contracts would launch 1-75 times USDT perpetual contracts.

Comparing with the contract tokens launched by Binance in June and July this year, we can see a huge contrast.

In July, the tokens launched on Binance contracts include: RENDER, WIF, and CRV.

In June, the tokens launched on Binance contracts include: ZRO, LISTA, MEW, ZK, and IO.

From the above listed currencies, we can see that from July to mid-August, Binance only launched 3 tokens. In June, most of the tokens listed on Binance Futures were popular new projects. However, judging from the subsequent market performance of the above tokens, none of them experienced a surge in a short period of time.

In late August, the contract tokens listed on Binance had a huge wealth effect, which also attracted the attention of the community and investors.

The wealth-creating effect of contracts has attracted heated discussions in the community, and the top management may be planning a global strategic layout

The current crypto market seems to have returned to last year’s bear market stage. Apart from the hotly speculated MEME concept currencies, it is difficult to see many relatively certain wealth opportunities. However, Binance Contracts has continuously demonstrated to the market the wealth-creating power of the world’s largest crypto exchange.

The community also has different opinions on Binance's behavior, which is similar to that of a market maker forcibly pulling up the price.

KOL @bitcoinmozi said that Bitcoin has been trading sideways recently, and the listing of small-cap altcoin contracts is creating hot spots to drive the rise of altcoins and revitalize the crypto market. However, there are still great risks in the short term.

KOL @lianyanshe said that the projects listed on Binance are not very valuable, and the reason may be that some market makers are speculating on projects with poor liquidity as MEME coins. In addition, he believes that the standard for listing contracts on Binance is that the trading volume exceeds 10 million for three consecutive days.

Another KOL @zhuanfgghjnb also said that under the influence of the listing of small-cap currencies on Binance Futures, he also tried to buy other altcoins.

Trader @allincrypto2011 believes that this is a partial copycat carnival driven by Binance, mainly to enhance market liquidity, and secondly to make money as a banker. However, judging from the current trading volume and market value changes, its impact on the market is relatively weak.

In addition to community discussions, many investors and analysts have listed potential currencies with low market capitalization and no contracts yet, in an attempt to bet on the next token that may be listed on Binance contracts.

Judging from the data and actions recently released by Binance, it seems that the world's largest exchange is not just for making money. First of all, the currencies listed on the contracts have all experienced a sharp decline. Secondly, the increase in the price is not as large as the endless manipulation of the market makers and dealers in the past. On the contrary, Binance has been increasing its efforts in compliance.

In terms of data, Coingecko disclosed the trading volume share of the top ten cryptocurrency exchanges in the second quarter of 2024. Binance's trading volume accounted for 45%, ranking first among CEX.

In terms of global layout, Binance recently announced that it has successfully registered as a reporting entity with the Financial Intelligence Unit of India (FIU-IND). Although Binance faces a tax demand of US$86 million from the Indian authorities, it still intends to return to India.

At the same time, Binance announced that it would pay 9.6 million reais (about 1.76 million US dollars) to the Brazilian Securities and Exchange Commission (CVM) to end the CVM's investigation into its failure to obtain the necessary licenses for providing derivatives trading services in Brazil.

Last month, a US court also relaxed restrictions on Binance US BAM and allowed it to invest customer funds in US Treasuries.

In addition, Binance CEO Richard Teng also stated that Binance will not rush to return to the US market and will no longer be a "founder-led" model, but will transform into "a more decentralized company" led by a board of directors.

Teng also made it clear that Binance is currently in good financial condition and has no plans to seek an IPO. Instead, it is focusing on business development in the global market and currently has 19 regulatory licenses around the world.

Recent news also confirms this. On August 22, Binance announced that it will recruit 1,000 people this year, many of whom will be designated for compliance positions to meet regulatory requirements, and annual expenditures are expected to exceed US$200 million.

summary

At the time of writing, Binance announced that it would launch a VIDT/USDT perpetual contract with a maximum leverage of 75 times, and VIDT rose by more than 54% in a short period of time. This also proves that the launch of new coins on Binance contracts does have a certain wealth-creating effect at this stage, but it is still difficult to predict the next coin to be launched. For Binance, the exchange's pursuit of reputation is obviously far greater than its desire for short-term business revenue.