On Tuesday (March 5th), Changpeng Zhao (also known simply as "CZ"), Co-Founder and CEO of Binance, held his second Ask Me Anything (AMA) session on Periscope. This article features the main highlights, including his most interesting comments on Binance's delisting policy and procedures, Binance Launchpad, Binance Coin (BNB), Binance Chain, Binance DEX, and XRP. The questions CZ was answering in this AMA session had come via Twitter and Periscope live chat.
Binance's Delisting Process
CZ started by pointing out that "delisting has to be done." He explained that Binance has certain criteria that projects must meet before their token/coin gets listed, and if over time, they fall "below that standard", then Binance has to delist them.
Next, he explained the Binance does not give projects early notice of a delisting:
"So, for example, we don't give three warnings -- first warning, second warning, third warning -- because when we do that, basically, by design, a very large number of project teams will have much earlier notice of when they will get delisted, and some of the unethical teams may even short their own coins, so they will dump their own coins first. So, we keep very tight control over the information flow, and this is why at the time of the delisting announcement, you see a very sharp drop in price, but before that, I think you guys can see that there's no change in price. That means we actually do a very good job of keeping the information confidential."
He then added:
"We do realize in full that in delisting coins, we actually hurt ourselves as well... The projects have to defend themselves... Also, we hurt some of our users who hold that coin... And almost all the projects will fight back... We don't really respond."
Here is how CZ stated the main goals of Binance Launchpad:.
"Launchpad is a place where we want to help good projects raise money, but it's not only about raising money. We want to help them raise awareness and exposure... We also help them raise liquidity after the Launchpad initial sale. If nothing goes unexpected, they have a very high chance of getting listed on Binance."
He next talked about how Binance and project teams decide on the initial offer price for the tokens being launched:
"We have a choice. We can try top advise the projects to keep the initial sale price low. We think that's a good thing. Do you want it low or high? Most people will choose the initial sale price to be low. When the initial sale price is low, we generate very high demand. So, basically, by design, a very large number of people will not be able to grab it. So, it is a rush sale type of event... We don't know how to price it perfectly so everybody gets and the guys who didn't want it don't get it. So, we want there to be higher demand than supply in the initial sale stage, and this will also help with the listing. When that coin is listed later on, a high demand will help drive the price even higher, hopefully."
Binance Coin (BNB)
First, CZ commented on Binance Coin's rise in the coin market cap tables to number eight or nine:
"We are probably the number one ERC-20 token, if you don't count the stablecoins, well USDT really."
He then mentioned various analysis reports that had been done on BNB, especially drawing attention to Multicoin Capital's "really good" and "really in-depth" report.
Although CZ refused to comment on the current BNB price and whether or not it is fairly valued, he did say that "right now, the BNB token, probably has more use cases than most coins out there."
Binance Chain and Binance DEX
CZ addressed some of the main misconceptions surrounding Binance Chain and Binance DEX. Here is one example:
"So, the 11 nodes are for the testnet... All the information we have released is regarding the testnet, not the mainnet... So, the node governance has yet to be decided for the mainnet, and we are more focused on speed and performance for this testnet, and the exact mainnet launch date is still to be decided."
Next, he talked about the future for Binance Chain:
"The Binance Coin will migrate to the Binance Chain as a native coin. We are also encouraging other ERC-20 tokens to migrate to Binance Chain. There are many benefits for doing that... Binance Chain is a faster chain... It's super easy to create a token on Binance Chain... There's no smart contracts to program... It's more secure... There's less room for bugs... There's about eight projects already confirmed for migrating to Binance Chain from ERC-20... These are not small projects."
Although earlier in the session, CZ had said that he did not want to talk about specific cryptocurrencies, he did decide to say a few words about XRP near the end of the session.
CZ started with this joke:
"I think if I talk about XRP anymore, I'm going to become one of those XRP armies."
He then made this very interesting comment that's sure to simultaneously please the XRP community and anger Bitcoin maximalists:
"People are aware that there is a lawsuit against XRP [he meant, Ripple, of course] on whether they are a security or not. Our judgement is that they are not. And until it's proven that they are, we listed them, and luckily we dragged other exchanges to list them. That's good thing... Just because there's a lawsuit doesn't mean they are guilty. So, we applied our judgement there, and we're always very supportive of XRP. There's a lot of guys who complain that it's overly centralized, but look, the market votes with their feet, and XRP is one of the largest market cap coins, and it's like that for a reason."
Featured Image Courtesy of Binance