He Yixin: If we have different opinions, then you might be right

Author: He Yi

1. Is the crypto world coming to an end?

Recently, many posts in the industry have been pessimistic about blockchain, and many people outside the industry have been asking me if the blockchain scam has ended. Those within the circle are questioning whether the industry has lost its potential. At which stage of the cycle have we arrived? Compared to good news, bad news is more likely to make headlines, and bad news also tends to attract more traffic and attention. What could be more laughable than people in the crypto world singing its demise? These behaviors and emotions are contagious, and the influx of traffic is intensifying. Even some OGs retiring have been amplified as evidence that "the crypto world is coming to an end." Some staunch idealists in the industry have also expressed anxiety and confusion in conversations with me.

In fact, it's not just the crypto world that is anxious. We live in this world and cannot escape our environment, water, and air. The activity of the investment market is closely tied to the economic cycle. Whether the economy is rising or falling will determine where the public allocates their budgets. As an ordinary person, only when I am well-fed and clothed will I consider investing. Therefore, every piece of news from the Federal Reserve serves as a guiding stick for seasoned players in the crypto world, especially as the overall market size of crypto continues to expand and large financial institutions participate in the industry. The blockchain industry is gradually maturing, especially after the approval of BTC and ETH ETFs. As a "configurable asset" among investment categories, the crypto market and the stock market have become two sides of the same coin.

Looking back: What changes have occurred in the crypto world over the past decade? I once compared the crypto world to the Wild West, where early entrants were like gold miners. During an economic upturn, a small amount of capital flowing into crypto could lead to geometric growth. In the early days of the blockchain industry's wild growth, as long as one dared to go all in, hundredfold or thousandfold coins were not uncommon. This was supported by both a niche market and macroeconomic conditions. In such an environment, making a wrong bet today could be corrected tomorrow. However, as time goes on, the economy enters another cycle, global consumption declines, more players join the gold rush, and miners continuously upgrade their equipment. Meanwhile, there are more and more professional players in the traditional market, and everyone feels that "it's not as easy to make money in the crypto world as it used to be."

From Bitcoin being repeatedly labeled as a "Ponzi scheme" to the approval of Bitcoin and Ethereum ETFs amidst countless doubts and criticisms, this is undoubtedly a remarkable victory. At the same time, we can see that the trading volume of traditional finance in crypto-related products is steadily expanding, such as CME and ETF trading volumes. Yes, the big players have arrived, but their approach is different from the imagined mindless capital takeover. Just like the internet changed the publishing and television industries, it didn't happen overnight; it was a gradual process that brought not just the rise of Bitcoin.

2. Has Binance given up?

We are the pigs on the windfall, in tune with the pulse of the times, and have walked alongside users to get to where Binance is today. We hope that the blockchain industry is not just a playground for niche players. We aspire for Binance to serve a billion users in the future and to become the infrastructure of tomorrow, and we have been striving for this goal. When we aim to promote the large-scale adoption of blockchain and protect the rights and assets of the vast majority of users, it means we need to seek a balance between ideals and reality, requiring compliance, anti-money laundering measures, and adherence to existing rules in traditional finance. History tends to repeat itself; in the early days of the internet, countless technological innovations emerged, and the turning point was when companies serving the majority became today's internet giants, while absolute libertarianism in the internet ultimately led to the dark web.

We cannot predict the future, so we can only learn from history. Products need to serve the majority to have a chance of becoming the financial infrastructure of the future. Binance's products start with trading but do not end there; you will see the emergence of Earn, Square, Pay, and Web3 wallets. We hope to explore how to bridge the gap and truly democratize blockchain technology, allowing ordinary people to use blockchain, not just speculate on it. They may not understand what blockchain technology is, but they can benefit from it, just like your grandmother may not understand internet technology but can enjoy the convenience brought by smartphones. The bubble will burst, but those products that truly meet user needs will change the world and create history.

3. Is your coin listed on Binance?

The community has been intensely discussing coin listings on Binance these days. We have seriously considered everyone's opinions, whether it was past beliefs that Binance listing VC-invested coins betrayed the community, or the view that listing MEME coins lowered the listing standards, or judging that Binance's listing of TG game projects was nonsensical. Criticism comes from studio players, and rumors of insider trading have also been investigated. We are paying attention and continuously reflecting, "The deeper the love, the harsher the criticism." Those who don't care won't spend time on you. Binance has come this far because of its users, and we value every user's opinion. Let me try to explain the basic framework and process of coin listing that everyone is shouting against:

Binance's coin listing consists of four stages: business, research group, committee, and compliance review.

I roughly summarize the aesthetic preferences retained by past committees, which can be divided into:

1) Listing projects that users need: In the past two cycles, we missed many opportunities to list coins. Early on, we did not pay enough attention to MEME coins, so we were late to list Shib, PEOPLE, PEPE, and even the recent MEME projects, resulting in a swollen face. The experience and lesson here is that Binance, as a trading platform, cannot just think something is good; it must be perceived as good by users.

In the debate over big and small neiro, we are reflecting more on what constitutes a good MEME. If the essence of the MEME community is another "GameStop," then is a token that is highly concentrated and whose price has been pumped still a MEME? Or is it a Ponzi scheme dressed in MEME clothing? Therefore, we have listed several relatively decentralized projects and MEME projects with low market capitalization. The initial screening included more than a dozen projects, many of which fell at the compliance review and token concentration stage.

2) Listing projects that have been around for a long time: Starting from the last two cycles, some traditional VCs began to enter the crypto world in large numbers, frequently making generous investments. Subsequently, everyone noticed that projects with even a slight semblance of quality in the industry saw their valuations soar. After project teams secured hundreds of millions or even billions of dollars in valuations from VCs, they had substantial funds to experiment and adjust their direction. The glory days of low-valuation infrastructure projects like Matic are long gone. With large sums of cash in hand, who would be willing to lower their valuation by billions of dollars to sell their coins for tens of millions? The price of their tokens is determined not by Binance but by the token model, circulation, buy orders, and sell orders. These top-tier teams with high valuations have many market makers willing to strategize for them to maintain high market values, and many exchanges are eager to partner with them, especially with the rise of DEX brought by AMM. It is not impossible without a trading platform. However, it is undeniable that while other projects rise and fall, they have endured longer and have more opportunities.

Many people will say this indicates that Binance is losing its voice. Yes, of course, there is no absolute voice; this is precisely a feature of the industry's decentralization and the combined effect of financial professionals and the rise of DeFi. Both are key to taking the industry to the next level. Without capital involvement, how could cryptocurrencies become a hot topic in the U.S. elections? Decentralization means no absolute authority; isn't this the charm of the industry?

3) Listing projects with business logic: Over the past decade, I have often heard the statement, "Crypto projects do not need a business model." However, I believe that whether in Web2 or Web3, the essence of entrepreneurship is to create what the world needs, and naturally, someone will pay for it, whether the customer is B-end or C-end. The methods of financing may change, but the essence of entrepreneurship remains the same. Since 2017, I have been conveying a concept: issuing tokens is a lifelong responsibility, guaranteed by long-term credibility. If one issues tokens and then sells them off to retire, then the real bankruptcy is the bankruptcy of one's credibility.

Because we prefer projects with solid business models and revenue, we hope to have reliable teams that possess entrepreneurial potential and can take on responsibilities. We also hope that your valuation is not too high, allowing for mutual growth with the community. We hope you can empower the tokens because if you stand with your users, your users will stand with you. If any project meets these standards, feel free to contact us or leave a message under this post.

Or apply publicly via the following link: https://www.binance.com/en/my/coin-apply

Official business TG contact: @BResearchBD

In terms of the coin listing process and the prevention of insider trading, Binance, as a system, considers all aspects to isolate information. As the outside world says, the Binance coin listing team has gone through several rounds of scrutiny. Currently, those conducting research on coin listings at Binance do not discuss business and are unaware of which projects enter the observation pool. Each person only knows the progress of the project they are responsible for. Even after IC voting, these projects still need to pass strict compliance reviews and could be canceled at any time.

According to exchange compliance requirements, all Binance employees must complete relevant mandatory compliance training. Additionally, Binance has an independent audit team dedicated to investigating such violations. If any information leakage or insider trading suspicion is confirmed, Binance will immediately initiate legal proceedings to transfer the relevant personnel to judicial authorities, with serious cases facing criminal liability.

We can establish rules to constrain people, but we cannot rule out the possibility that the current system or framework has information blind spots. Therefore, we are offering a high reward: we welcome anyone who knows of any incidents related to coin listings or other corrupt behaviors, or any "coin listing observation indicators" in our blind spots. If verified by the Binance team, we will provide a reward of $10,000 to $5 million for reporting, while keeping your identity confidential. Reporting email: audit@binance.com

4. If we disagree, you might be right

In the past few months, I have rarely posted on social media. The more I read, the more I feel ignorant, and I am increasingly filled with awe for the world. We are just a grain of sand in the torrent of the times, swept up by various coincidences. Everything I have gained today is a product of the times, the rapid economic development brought by globalization, the flattening of information due to the rise of the internet, and the opportunities presented by the blockchain industry emerging from nothing. It is not because I am exceptionally gifted; it is merely that in the early days of the industry, "when there are no heroes, the petty characters become famous." This means: "I may not be right," because according to the logic of coin listings mentioned earlier, Bitcoin's birth today may not necessarily pass IC. A careless remark of mine, an incomplete or inaccurate expression, could lead to unnecessary misunderstandings and over-interpretations in the community, which is why I increasingly lack the desire to express myself. Occasionally, when I see some misunderstandings, I still try to explain, but it often ends up making things worse.

The world each person sees is not the same. We may be intersections of different parallel universes. If my words resonate with you even a little, prompting investors to DYOR or encouraging entrepreneurs to settle down and move forward, I feel deeply honored. Each person can only see their own future; what you believe in will shape what you build. We will continue to explore the future, just like on the first day we entered this industry. Thank you for your companionship.