Original title: "If we disagree, then you may be right"

Original author: He Yi, co-founder of Binance

Recently, after Binance launched multiple Meme coins, a chat screenshot of a KOL accurately predicting all specific coins before listing was reported, which once again aroused heated discussions in the community about "Binance insider trading". The US SEC also submitted a proposed revised complaint against Binance, focusing on Binance's token listing process and accusing Binance of acting as an unregistered securities provider.

In response, Binance co-founder He Yi issued a statement to explain his personal views and unique opinions on the two major themes of "not so easy to make money" and "compliance" in the crypto field during this cycle, as well as the specific process of Binance listing coins. The following is the original text:

Is the currency circle over?

Recently, many posts in the industry that are pessimistic about blockchain are very popular. Many people outside the industry are asking me if the blockchain scam is over? People in the industry are asking if the industry has no future? What stage of the cycle are we in? Compared with good news, bad news is more likely to make headlines, and bad news is also more likely to get more traffic and attention. What is more worthy of ridicule than people in the cryptocurrency circle singing pessimistic about the cryptocurrency circle? These behaviors and emotions are constantly contagious, engulfing traffic and intensifying. Even some OG retirements have been magnified as evidence that "the cryptocurrency circle is over." Some industry-firm idealistic players also revealed anxiety and confusion in their chats with me.

In fact, it is not just the cryptocurrency circle that is anxious. We live in this world and cannot do without the environment, water and air. Whether the investment market is active or not is inseparable from the economic cycle. Whether the economy is going up or down will determine where the public's budget is allocated. As an ordinary person, you will consider investing only when you have enough food and clothing. Therefore, every news from the Federal Reserve is a baton for the market trend for senior players in the currency circle, especially in the currency circle. The overall market size continues to expand, large financial institutions are involved in the industry, and the blockchain industry is gradually maturing. Especially after the approval of BTC and ETH ETFs, as a "configurable asset" in the investment category, the currency market and the stock market have become two sides of the same coin.

Hints are wise: What changes have taken place in the currency circle in the past ten years? I once compared the cryptocurrency industry to the Wild West, and the people who poured into the industry early were the early gold diggers in the West. In the economic upswing cycle, a little bit of capital overflowing into the cryptocurrency industry can also make the cryptocurrency industry grow exponentially. In the early days of the wild growth of the blockchain industry, as long as you dare to go all in, it is not uncommon to see a coin that has increased by hundreds or thousands of times. This is the dual blessing of the early niche market and the macro economy. In such an environment, if you go all in today, you will get it back if you go all in tomorrow. But as time goes by, the economy enters another cycle, consumption is downgraded all over the world, and more players join the gold diggers. The gold diggers wielding shovels continue to upgrade their equipment, and there are more and more professional players in the traditional market. Everyone will feel that "the cryptocurrency industry is not as profitable as before."

From Bitcoin being called a "Ponzi scheme" by countless people over and over again, to the approval of Bitcoin and Ethereum ETFs amid countless doubts and criticisms, it is of course a great victory. At the same time, we can see that the trading scale of traditional financial products related to cryptocurrencies is steadily expanding, such as: CME and ETF trading volume. Yes, the big ones are coming, but the way they come is different from the way everyone imagines that capital will take over without thinking. Just like the Internet changed the publishing industry and the television industry, it did not happen overnight, but it moistened things silently, bringing more than just the rise of Bitcoin.

2. Is Binance lying flat?

We are the pigs at the outlet of the wind, stepping on the pulse of the times, and standing with users to today's Binance. We hope that the blockchain industry is not a playground for niche players. We hope that Binance can serve one billion users in the future. We hope to become the infrastructure of the future, and we have been working hard for this goal. When we want to promote the large-scale adoption of the blockchain industry and protect the rights and assets of the vast majority of users, it means that we need to find a balance between ideals and reality, compliance, anti-money laundering, and follow the existing rules of the traditional financial industry. You see, history always repeats itself. There were countless technological innovations in the early days of the Internet, and the turning point was that companies that served most people became today's Internet giants, and absolute liberalism in the Internet eventually went to the dark web.

We have no way to predict the future, so we can only learn from history. Products need to be able to serve most people to become the financial infrastructure of the future world. Binance's products start with transactions, not just transactions. You will see the emergence of Earn, Square, Pay, and Web3 wallets. We hope to try and explore how to cross the gap and truly popularize blockchain technology, so that ordinary people can use blockchain, not just speculate on blockchain. They may not know what blockchain technology is, but benefit from blockchain, just like your grandmother does not understand Internet technology, but can enjoy the convenience brought by mobile phones. Bubbles will burst, and those products that truly solve user needs will change the world and create history.

3. Is your coin listed on Binance?

The community has been discussing Binance listing coin fiercely these days. We have carefully read everyone's opinions. Whether it was thought that Binance listing VC-invested coins was a betrayal of the community, or that Binance listing MEME coins lowered the listing standards, or that Binance listing TG game projects was all nonsense, and that studio players were criticized, including rumors of insider trading, we have paid attention to it and are constantly reflecting on it. "The deeper the love, the more severe the blame." People who don't care will not spend time on you. Binance relies on users to get to where it is today, and every user's opinion will be valued. I will try to explain the basic framework and process of listing coins that everyone is calling for:

Binance listing consists of four parts: business, research group, committee, and compliance review. I will roughly summarize that the aesthetic preferences retained by previous committees can be roughly divided into:

1) Listing projects that users need: projects with users and traffic. In the past two cycles, we have missed many listings. In the early days, we did not pay enough attention to MEMEcoin, so we were late to realize that Shib, PEOPLE, PEPE, and even the recent MEME projects rose very high before listing, so that our faces were swollen. The experience and lesson here is that Binance, as a trading platform, cannot think it is good, but users must think it is good.

In the dispute between big and small neiro, it is also because of the criticism of the community that we are more reflecting on what is a good MEME. If the essence of the MEME community is another "GameStop", then the tokens are highly concentrated, and the price has been blown up by Pump. I don’t know when the bubble bursts. Is MEME still MEME? Or is it a Ponzi scheme in MEME guise? So we listed several relatively decentralized MEME projects with low market capitalization. We screened more than a dozen projects in the early stage, and many of them failed due to compliance review and token concentration.

2) List long-lived projects: At the beginning of the last two cycles, some traditional VCs began to enter the cryptocurrency circle in a big way, frequently making investments and being generous. Then everyone found that all the projects with a little bit of appearance in the industry were rising. After the project parties received valuations of hundreds of millions or even billions of dollars from the VC side, they had a lot of money in their hands to try and make mistakes and adjust their directions. The grand occasion of Matic's infrastructure projects that sold coins at a low valuation is gone forever. With a lot of cash in hand, who is willing to lower their valuations of billions of dollars and sell their own coins for tens of millions of dollars? It is not Binance that determines the price of their tokens, but the token model, circulation, buying and selling. These high-valuation projects of top teams have a large number of MMs willing to give them advice to maintain their high market value, and a large number of trading platforms are flocking to them, especially AMM has brought about the rise of DEX, and it is not impossible without a trading platform. But it is undeniable that when other projects rise and fall, they live longer and have more opportunities.

Many people will say that this shows that Binance is losing its voice. Yes, of course there is no absolute voice. This is precisely the characteristic of the decentralization of the industry. It is the result of the joint action of financial professional players and the rise of DEFI. Both of them are the key to bringing the industry to the next level. If there is no capital intervention, how can cryptocurrency become a hot topic in the US election? Decentralization, without absolute authority, isn’t this the charm of this industry?

3) Projects with business logic: In the past ten years, I often heard a statement: "Coin circle projects do not need business models, as long as there is a business model, the valuation can be calculated." But I think that whether it is Web2 or Web3, the essence of entrepreneurship is to create what the world needs, and naturally someone will pay for it. Whether the customer is B-end or C-end, the financing method will change, but the essence of entrepreneurship will not change. Since 2017, I have been conveying a concept: Issuing coins is a lifelong responsibility, and it is guaranteed by long-term reputation. If you sell the coins directly after issuing them and retire, then a person's reputation bankruptcy is the real bankruptcy.

Because we like projects with solid business models and income, we hope that the team is reliable, they have entrepreneurial potential, and can take responsibility. We also hope that your valuation is not too high and that you can take care of the community to grow together. We hope that you can empower tokens, because if you stand with your users, your users will stand with you. If any project meets these standards, please contact us or leave a message under this post.

In terms of the listing process and prevention of insider trading, as a system, Binance has considered all links to isolate information. Just as the outside world said, the Binance listing team has been bloodbathed for several rounds. At present, the people doing listing research in Binance do not talk about business. When talking about business terms, they do not know what projects will enter the observation pool. Everyone only knows the progress of the projects they are responsible for. Even if they pass the IC vote, these projects need to pass strict compliance audits and may be cancelled at any time.

In accordance with the compliance requirements of the exchange, all Binance employees need to complete relevant mandatory compliance training. At the same time, Binance also has an independent audit team that specializes in investigating such violations. If it is verified that there is information leakage or suspicion of insider trading, Binance will immediately initiate judicial proceedings to transfer the relevant personnel to the judicial authorities, and those who are serious will face criminal responsibility.

We can establish rules to constrain people, but it does not rule out that there are information blind spots in the current system or system, so we have issued a high reward: welcome all reports involving any corruption involving coin listings or any other "coin listing observation indicators" in our blind spots. If the Binance team verifies, we will keep your identity confidential and provide you with a security vulnerability bounty of 10,000 to 5 million US dollars.

Fourth, if we disagree, you may be right

In the past few months, I have rarely posted social media messages. The more I read, the more ignorant I feel, and the more I am in awe of the world. We are all just a grain of sand in the torrent of the times, swept to the crest of the wave by various coincidences. Everything I have gained today is the product of the times, the rapid economic development brought about by globalization, the information flattening caused by the rise of the Internet, and the opportunity for the blockchain industry to be created from scratch. It is not because I am gifted, but because in the early days of the industry, "there are no heroes when there are no heroes." This means: "I am not necessarily right", because according to the logic of listing coins mentioned above, even if Bitcoin is born today, it may not pass the IC. My inadvertent words, incomplete and inaccurate expressions may bring unnecessary misunderstandings and over-interpretations to the community, so I am increasingly lacking the desire to express myself. Occasionally, when I see some misunderstandings, I will still try to explain them, and the more I explain, the worse it gets.

The worlds that everyone sees are not the same. We may be the intersection of different parallel time and space. If my words can touch you a little, and can make investors DYOR and entrepreneurs willing to settle down and move forward, then I am deeply honored. Everyone can only see their own future. What you believe in is what you will build. We will continue to explore the future, just like the first day we entered this industry. Thank you for your cooperation.

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