Cryptocurrency exchange Binance is making changes to its token listing requirements to provide better protection for investors. The new requirements will make it more challenging for projects to list new tokens on the platform.

According to reports from Bloomberg, Binance executives have decided to implement stricter listing requirements to safeguard investors. These changes, which started late last year, have been met with resistance from some project executives who feel that the new rules are too burdensome.

One of the key changes includes extending the cliff period for projects seeking to list tokens on Binance from six months to a year. During this period, tokens cannot be sold, and more tokens must be allocated to market makers. Projects may also be required to pay collateral to ensure listing.

“A longer vesting schedule fosters deeper project commitment, benefiting the users and the overall ecosystem.” – Binance executives

While these changes may impact the profitability of projects seeking to list on Binance, the exchange believes that a longer vesting schedule will lead to greater project commitment and benefit the overall ecosystem.

In recent years, Binance has faced challenges that have affected its market share. Despite being a leader in the centralized cryptocurrency exchange market, Binance’s share dropped to 32% in November 2023, following the announcement of CEO Changpeng Zhao’s resignation. By the end of 2023, Binance’s market share had decreased to 48.7% from 54.2%.

One of the most significant challenges for Binance was its legal battle with U.S. regulatory authorities, which resulted in the exchange paying $4.3 billion for economic offenses. Despite these setbacks, Binance remains a dominant player in the cryptocurrency exchange market.

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