Cryptocurrency exchange platform Binance announced Monday a new measure designed to protect less-suited users from losing funds while trading tokens for high-risk crypto projects, especially those in the decentralized finance (DeFi) space.
The new measure, dubbed “Innovation Zone” comes after the exchange received heavy criticism for listing DeFi projects within a few days after they launched, and without the projects having enough time to prove their credibility in the industry.
Binance remarkably broke its listing record when it listed the DeFi token, UNI, in less than 60 minutes after the team behind the Uniswap protocol launched the token.
Another high-profile case was the listing of SUSHI, the native token for the DeFi project, Sushiswap. It took only a few days after the listing before the token lost near 100% because its anonymous founder dumped over $14 million worth of SUSHI from the development fund.
While Binance CEO Changpeng Zhao (popularly known as CZ) defended that listing, the exchange has now taken another measure that it says will protect “less suited users from being exposed to the ‘risk’ that comes with trading [high-risk projects] them.”
Enter Binance Innovation Zone
According to the latest update, Binance has now created a new space on its website, dubbed Innovation Zone. The new feature will allow users to trade newer token offerings from the comfort of their Binance account, but not without warning them of the associated risks.
For instance, users will have to specify that they’re aware that Binance will not be held responsible for any losses, and also agree that they could lose 50% or more of their capital by trading tokens listed under the Innovation Zone.
Writing on the need for the new zone, CZ noted:
By forming the Innovation Zone, we can provide our users with a safer space for accessing newer tokens that will likely have higher volatility than other tokens. This way, we are able to prevent more untoward scenarios for our users who just want to access certain projects.
He noted that in keeping on-trend and delivering what users expect, the platform will continue listing DeFi-based coins, including those with “decentralized teams with no explicit founders.”
Given that Binance has launched its DeFi yield-farming platform, Launchpool, in recent weeks, one may expect that both these tokens and other DeFi coins will fall under the “Innovation Zone.”
See Also: Binance Grants $100M Support to Bridge the Gap Between DeFi and CeFi.
