The CEO of Binance, CZ, explained this Tuesday (26) why the exchange is not promoting new cryptocurrency launches, which have been stalled for a few months. During the bull market, several projects came onto the market and many critics pointed out that they did not understand why there are more than 20,000 cryptocurrencies.
And among these thousands of projects, the market has always focused its efforts on those with the highest market capitalization, but mainly on Bitcoin, which has always maintained a dominance of over 35% in this period. This certainly indicated that most cryptocurrency holders were looking at the core technology foundation.
So, with the crash of the last few months, altcoins began a full-scale debacle, with several projects losing steam and ending their history of pseudo-innovations. One of the biggest collapses was that of the Terra ecosystem (MOON)which saw the TerraUSD (UST) stablecoin melt in a matter of hours.
But this was not the only one to die, as several others, although still in existence, have lost most of their market value. Today, bitcoin dominance is over 40%, even with a drop in its price, indicating that the altcoin season may be over.
Binance CEO explains why the exchange no longer promotes new cryptocurrency launches
Part of the numerous launches of new cryptocurrencies was carried out by the Binance exchange, through its instruments called IEO and Launchpad. In this way, new companies and startups launched tokens with the help of the platform, selling part of their idea to investors.
This has allowed many businesses to finance themselves and launch products with cryptocurrencies, be it DeFi, NFTs, games, among others. Soccer clubs, for example, launched their fan tokens, as was the case with Brazil’s Santos, which had the exchange’s help in the process.
However, the market turned bearish and the easy money ran out, leading many venture capitalists to shy away from “promising news”. A) Yes, a user who missed the announcements asked Binance about the lack of news.
In response, Binance CEO Changoeng Zhao himself stressed that new launches are stalled, as long as bad cryptocurrencies do not leave the market. So with the wait, those who had gotten used to buying IEOs will have to find another way to speculate.
I’m not too sure, but I’m probably just hoping that all the bad projects are removed first.
Not too sure, but probably just waiting for all the bad projects to get flushed out first.
— CZ 🔶 Binance (@cz_binance) July 26, 2022
It is worth remembering that at the end of June 2022, sites such as CoinGecko and CoinMarketCap showed the mark of 20,000 cryptocurrencies created. However, on Tuesday (26), CoinGecko lists only 13,000, indicating a reduction in the number of coins in circulation.
Some of the causes of these disappearances include scams by altcoin creators, unsubstantiated projects that died naturally, and investors’ lack of interest in taking risks with these ventures.