Jessy, Jinse Finance
The bear market in the middle of 2024 is a huge challenge for investors. How can investors navigate the bear market smoothly and accumulate capital to welcome the bull market after Trump's election?
On the one hand, it depends on the listing strategy of the trading platform the investors choose and the measures taken to protect the interests of investors.
This year, Binance, which has weathered a series of storms, still occupies the top spot in the exchange track. Currently, Binance's user base has exceeded 225 million, with over 40 million new users added this year.
New users have chosen Binance as always. The success in the highly volatile market relies on Binance's listing strategy and the launch of a series of high-yield financial products, which have ensured the investment returns of users. This is the "technique" of Binance's success.
The "Tao" of Binance's success is to always stand with its users.
Focusing on quality rather than quantity in the listing strategy
In 2024, unlike the very aggressive listing strategies of some second- and third-tier exchanges, Binance's listing is still selective, adhering to the principle of focusing on quality rather than quantity.
According to a research report by Animoca Digital Research, Binance listed 44 tokens in the first three quarters of this year. In contrast, KuCoin and Bybit listed more than 150 tokens, and Bitget listed 339 tokens. It is precisely because of this selective listing model that Binance achieved the highest returns in the bear market in the middle of this year.
As of September 2024, the average returns of these exchanges were Binance -27.00%, Bybit -50.20%, KuCoin -48.30%, and Bitget -46.50%. This shows that Binance has implemented a more effective selective listing strategy, and the token prices have performed relatively better in the challenging altcoin market environment.
Specifically, Binance has its own consistent principles in token selection. He Yi said the principles are: first, to list projects that users need, with user base and traffic; second, to list projects that can last; and third, to list projects with solid business logic.
In the bear market in the middle of this year, with insufficient market liquidity, low-cap meme coins were fully circulated, and there was no large selling pressure from VCs, making them the only outlet for retail investors at the time. Binance also listed some popular meme tokens.
According to data summarized by X user Ai Yi, as of November 18, Binance has cumulatively listed 20 Memecoin projects (including contracts and spot) since 2024, and spot trading accounts for 35% of all listed projects, with only one project experiencing a decline after listing, and the price of the small-cap $NEIRO even surged by 7594%.
PNUT and ACT, which were listed on Binance on November 11, saw their prices soar 16 times within half an hour after being listed on Binance, with ACT's initial market cap skyrocketing from $20 million to $350 million, and still having a 72.60% increase after listing, ranking among the top 200 in MCAP. PNUT was also not to be outdone, tripling in value in just one hour, and after listing, it even saw a 4-fold increase, with its market cap reaching $400 million.
As one of the important narratives of this cycle, meme tokens are undoubtedly something that Binance cannot and should not miss.
He Yi said that for meme coins, Binance has also reflected internally, and after the controversy over small and large neiro, Binance has chosen to list relatively decentralized and low-cap meme projects due to community criticism.
The choice of meme coins also shows that Binance is still considering the interests of users. Meme coins with concentrated holdings have a higher probability of "cutting the leeks", while decentralized, low-cap meme projects provide more opportunities for ordinary people to make money.
The other two principles of Binance's listing are - projects that can last and projects with solid business logic. Following these two principles, Binance has listed projects like TON with solid business logic, and concept coins like Arkham, as well as Pendle, which has been rediscovered by the market due to the reStaking trend.
These projects have inherent sustainability and have had their value validated after going through the deep baptism of the bear market.
Binance's listing behavior has also brought more exposure and liquidity to the projects. This is a win-win for both users and projects. And the data shows that through Binance's strict review, at least in the bear market in the middle of this year, it has helped users reduce their losses.
Abundant financial products to ensure users make money
Data shows that the average ROI of Binance's Launchpool projects this year is 2.13 times. The average valuation of the projects is $326 million, and a total of $929 million was raised through Launchpool.
The data is very impressive. Generally, traditional trading platforms cannot guarantee that users can make money. But on Binance, users can hold BNB or FUSD to participate in the airdrop of some new projects. This ensures that users can "make money".
In this bull market, Binance has launched Launchpool frequently, and users holding BNB or FUSD on the platform can participate in Launchpool to obtain new token airdrops.
Especially for users holding BNB, they can not only enjoy the steady appreciation of BNB, but also the "passive income" brought by rich financial products like Launchpool.
The airdrop of new tokens is not limited to Launchpool, but also includes channels like Hodler Airdrop and Megadrop. Moreover, the BNB in the Binance Web3 wallet can also participate in the airdrop of new tokens.
For conservative investors, they can hold a large amount of BNB, so that they can enjoy the profits from the steady rise of BNB, as well as the airdrop of new tokens, thereby achieving "multiple benefits from one fish".
On the other hand, holding BNB and obtaining stable financial income on the platform can hedge against the risk of token price decline in the bear market. And in the bull market, users can obtain the hottest tokens at the moment through financial products like Launchpool, without cost, and participate in the hottest narratives in the industry, helping hot projects with financing and promotion, and participating in the construction of the industry.
In addition to the popular Launchpool, Binance also has other rich financial products. Currently, Binance Finance has financial products such as Earn, ETH Staking, Binance Pool, BNB Yield, DeFi Mining, and Dual Investment. These products can be divided into principal-protected and high-yield types to meet the various investment needs of users.
Standing with the users
He Yi has said that Binance's success is because it has grasped the pulse of the times and stood with its users.
Discovering the needs of users in the industry and meeting their needs is the core reason for Binance's success.
The evolution of Launchpool can prove this point. Originally, users participating in Binance's Launchpool needed to put BNB or specific stablecoins into the Launchpool pool, and then claim the income when the time came. But this year, users can accumulate interest by purchasing the principal-protected Earn products with BNB, and automatically qualify for Launchpool, Megadrop, and HODLer airdrops, without the need to manually invest and confirm. And the BNB in the Binance Web3 wallet can also participate in the airdrop of new tokens. Binance's move has undoubtedly simplified the participation process and benefited the users.
Binance not only meets the needs of users in trading, but also goes beyond trading. The emergence of products like Earn, Plaza, Pay, and Web3 wallet proves that Binance is using rich products to meet users' multi-faceted needs in the industry.
The Binance Plaza allows users to understand industry information and find the "wealth code". Binance Pay enables the real-world application of cryptocurrencies.
As He Yi said, Binance is always trying to explore how to bridge the gap and truly popularize blockchain technology, so that ordinary people can use blockchain without just speculating on it, and ordinary users can benefit from blockchain without knowing what blockchain technology is.
Binance's ambition to support industry development is huge, and the realization of these ambitions depends on the understanding and fulfillment of industry and user needs.
