⚠️The whole network is attacking, where did Binance go wrong? And how should it be corrected? I dare say I have provided the most fundamental analysis I have seen so far on the entire network.
In my subjective judgment, today's incident at Binance is an inevitable result. The reason is very simple:
1. Dominance! Too big! So big that even the combined size of all other exchanges, both centralized and decentralized, doesn't match Binance.
2. Big = Liquidity = Trading sentiment leverage = you must set an example in all aspects = discussions about Binance attract traffic; praising Binance or criticizing Binance both generate traffic, with compliments overflowing and criticisms being universally rejected.
3. Binance has given all its empathy to the users (the management of a company with only a few thousand employees, He Yi @heyibinance, can shed tears when discussing how Binance users are bullied. CZ @cz_binance, who could have retired given his billionaire status, interacts endlessly with small users, giving hope to grassroots newcomers like @EnHeng456).
4. Binance's wolf culture leads to a lack of empathy for other exchanges, project parties, funds, etc.
I actually asked a sister privately about the hellish difficulty of starting a business now, Binance is giving so many airdrops to users, how can they survive?
The sister said, "Binance day one valued at 20M, 40% is given to users at a low price. Our BNB is built step by step by the team holding on to faith and not selling coins, stemming from our business having revenue and real large-scale usage. Doubao AI software faces the blockade of the giants Alibaba and Tencent, but good products and good projects can always run. " This is her logic. It is very real and bloody, but it is undeniable that Binance's survival of the fittest is given to the market compared to other companies in the industry.
Why do I say that today's FUD about Binance is inevitable? Because it is hated.
1. BN Listing requires a large number of tokens from project parties.
BN previously mentioned in their research report that they believe investment funds have inflated the FDV of project parties, leading to users being left holding the bag when tokens are launched and their chips are completely concentrated. If Binance lists such projects, the users it claims to protect become bag holders.
Does BN require tokens from project parties for listing?
As far as I know, yes.
What do you need tokens for? --- Airdrop them all to users.
So today we can see that in the bear market, under the logic that Binance only considers users and the survival of project winners, we have this situation:
"Projects with higher market attention and better commercial value can have a lower proportion of airdrops. However, if your business logic is not well validated, or the quality is poor, then I'm sorry, you have to give a higher proportion of tokens to airdrop to users. Regardless of the quality of Binance's listings (it's too difficult to judge the quality, this is a metaphysics), as long as Binance lists a token, whether it's spot contracts or Alpha, project parties must yield benefits to provide real benefits to users."
Hated by many 💩
Binance, do you think other exchanges hate you for grabbing users? Do project parties complain about giving out so many tokens? Do investment funds complain about not having better returns? (Eh, my investment fund Geekcartel, eh. I said I never short or hedge OTC, I currently have no losses and some floating profits. Other funds envy my situation.)
2. A bunch of ghost memes, every day on X chattering, after going online, they perform poorly.
Regarding this meme issue, if I were Big Brother, I would be helplessly amused. Previously he said we still need to Buidl, but most memes are not doing well, and everyone should not act impulsively. Then the whole network of users launched an attack because this is one of the few rising channels outside of the more risky contracts that change the asset class.
Big Brother began to doubt life, thinking, maybe he was wrong.
Users want it, Binance provides it! A miraculous scene began, Big Brother, such a serious person, suddenly became lively and even playful. From the logic of exchanges, they need to focus on memes with higher community attention. Returning to what I mentioned at the beginning, Binance's dominance = liquidity = trading mood leverage = you must set an example in all aspects = discussions about Binance have traffic, the entire network's MEME climax revolves around Binance's topic. It's not that no one is not hyping other topics, but when SOL launched in Chinese, Xu 🌟🌟.
And OK also has MEME tickers coming out, but the attention and trading volume just aren't that great. If Binance doesn’t list because of the ticker being related to Binance, that would be worth the scolding.
Binance's actions have transferred SOL, a chain centered on memes, to the competitiveness of BNB, from the English world to the Chinese as well.
Hated by many 💩
Of course, many people, especially those who are fans of SOL and its meme launch, hope Binance can be more open. However, to put it another way, BNBChain, as the chain of BNB, considers the better development of BNB holders and its own chain, being a bit selfish doesn't seem to be a problem. However, as the largest exchange in the universe, you should have enough vision to consider the development of other exchanges and public chains, and this is indeed the market's expectation. I expect this as well. However, doing so would harm the interests of BNB holders. So if I were Binance, how to choose is really difficult. 🤷
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When an organization becomes too large, whatever it does will harm the interests of some people. Especially when you do not have a violent law enforcement machine, you must always face attacks from both sides. Even a government, with speech + a violent machine can overthrow you.
And today, a single word from Binance can determine the life and death of a project, a strategy can change the investment and entrepreneurial direction for all investors and entrepreneurs.
Binance is forcing investment institutions to invest not in hollow narratives but in projects with real usage scenarios and the ability to generate revenue. Jiayi's market accelerator company was also forced out like this. 😭
It's all a history of blood and tears. When VCs basically make money, now there is no hard power to afford a meal.
I find it hard to say whether Binance's series of actions are absolutely right or wrong. Because I believe Binance has indeed affected my fund's income and increased the difficulty of investing in projects.
However, as a user of Binance and a holder of BNB, I am always at ease, reassured that the world's largest and most powerful Binance stands on my users' side, fighting with the wealthy and powerful from other industries for the sake of countless people like me, shielding me from the wind and rain as much as possible.
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In the end, "Why are others not hated, why aren’t they criticized as much?"
1. The scale is not big enough. No matter what decision is made, the affected people are limited. The harsh truth is "Nobody cares".
2. Coinbase's criticisms can't penetrate China, OK's criticisms can't get out of China, Upbit's criticisms are digested in South Korea.
Only Binance, praise and scolding can penetrate the world.
If you have any constructive suggestions for Binance, please leave a message. I believe one thing, in the current market landscape, building Binance is building the industry and building oneself.
Today I drank a little and suddenly felt a bit sentimental, hee hee 😳
