Binance Is Reaching Out to Low-Cap Crypto Projects in a Bid to Boost Trading

Binance has reached out to various cryptocurrency projects, seeking information about their market makers and their willingness to allocate a portion of their tokens to Binance savings pools. This strategy aims to amplify market liquidity and mitigate the potential for price manipulation.

The world's largest cryptocurrency exchange, Binance, has initiated communication with select crypto projects possessing low-liquidity tokens, positioning this action as an endeavor to "fortify their liquidity safeguard measures."

A representative stated via email to CoinDesk that their team has engaged with a handful of projects whose digital assets are listed on the exchange's platform. This outreach is framed within the context of an ongoing risk management campaign.

The projects under consideration exhibit relatively diminished market liquidity in their trading pairs and/or possess a smaller market capitalization, thus potentially exposing users to vulnerabilities such as market manipulation.

According to The Block's earlier report, Binance has solicited information regarding the participating projects' market makers. Additionally, the exchange has inquired whether these projects would entertain the possibility of allocating up to 5% of their circulating tokens to Binance's savings pools, receiving interest in return. Screenshots, whose authenticity remains unverified, showcasing comparable requests have surfaced on X, the social media platform formerly known as Twitter.

The spokesperson articulated that the underlying objective of their risk management outreach initiative revolves around encouraging project teams to undertake the prescribed measures that enhance the safeguarding of liquidity. Engaging the support of market makers is delineated as one plausible avenue to bolster this protective framework.