Binance's New Token Launch Strategy Boosts BNB Chain TVL by 14.7x

Binance, the world's largest cryptocurrency exchange, has recently shifted its strategy for token launches. Instead of directly listing tokens on its exchange, Binance is now utilizing its Binance Wallet for secondary listings. This new approach involves hosting Token Generation Events (TGEs) through Binance Wallet, followed by a secondary listing on the exchange. This strategy aims to mitigate the initial selling pressure that often accompanies large-scale token launches, thereby protecting the interests of users who did not participate in the TGE.

So far this year, five projects have been publicly launched on Binance Wallet, including Particle Network (PARTI), Bedrock (BR), and Bubblemaps (BMT). These projects have shown strong performance post-TGE, with returns on investment (ROI) ranging from 2.3x to 14.7x. This success has triggered a Fear of Missing Out (FOMO) effect, bringing numerous benefits to Binance’s ecosystem. These benefits include increasing the Total Value Locked (TVL) on the BNB Chain as new assets are issued, attracting new users to the Binance Wallet, and boosting demand for BNB purchases.

Under this new model, Binance does not list the tokens immediately after the TGE phase. Instead, it allows users to sell first on Binance Wallet, PancakeSwap, or other centralized exchanges (CEXs). This ensures that Binance users who did not participate in the TGE are not affected by price drops. Binance can then list the token when its valuation is lower, and selling pressure has decreased. Projects with strong capital may have already bought back their tokens at a low price, and at this point, the listing can create a new wave of price increases.

This strategy is part of a four-stage plan for new projects, with the ultimate goal of listing on Binance Futures and eventually aiming for a Binance Spot listing. An example of this strategy in action is the project MyShell, which conducted its TGE Offering on Binance Wallet, then listed on Binance alpha, and finally achieved a Binance Spot listing.

However, this approach is not without its risks. Users on other CEXs may experience losses due to initial selling pressure. Additionally, if a project fails to develop successfully, both Binance and investors could face negative consequences. Despite these risks, the secondary listing model through Binance Wallet has proven to be an effective way to reduce users’ risk and optimize the benefits for Binance ecosystem components, including BNB Chain and Wallet.