Recent reports reveal that Binance has proactively reached out to several projects listed on its platform in the past week. The exchange inquired about their engagement with market makers and proposed participation in Binance’s savings products.
Binance’s proposals include the option for projects to deposit 1-5% of their circulating tokens into dedicated savings accounts, yielding interest. Screenshots illustrating these interactions have surfaced on social media, sparking discussions within the cryptocurrency community.
A representative from Binance clarified that these actions are part of an ongoing risk management initiative. The targeted projects encompass a small subset of cryptocurrency institutions whose trading pairs exhibit lower liquidity and stability when compared to the broader market. The spokesperson highlighted that while these projects hold smaller market capitalizations, their functionalities can potentially expose users to risks such as market manipulation.
The underlying goal of this risk management campaign is to encourage project teams to adopt recommended strategies for bolstering liquidity protection. Collaborating with market makers emerges as a pivotal means to achieve this protection. Additionally, projects are offered the option to contribute to savings pools like Binance Savings, wherein users can lend tokens and enhance market liquidity by engaging in active trading. Notably, the spokesperson emphasized that participation in these initiatives remains voluntary.
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