I just saw #Binance's new event called Booster before the TGE.

CN
Phyrex
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6 hours ago

Pre-TGE I just saw Binance's new activity called Booster, which happens to be the Codatta project I introduced yesterday. The new information is insufficient; I took a quick look, and it seems that you first get the tokens, but they won't be listed immediately. They will start circulating and trading only after they are listed. The purpose of doing this can be guessed at a few points:

  1. The market dictates the price, meaning users are encouraged to build liquidity pools themselves, thereby stabilizing investors' expectations after the opening through time, similar to pre-market trading, but it will be more public than pre-market trading.

Even though the tokens are issued, all of them are locked and cannot be withdrawn. There might be tokens outside, which I think is possible. Even if there is no circulation at all, some exchanges can still list data tokens, so essentially, the likelihood of point 1 is not very high and not very meaningful.

  1. Avoiding the situation of a price crash right after listing. Currently, whether it's TGE or Alpha projects, I believe no one can say 100%, but at least 90% of the time, people sell as soon as they get the tokens. This means that except for a few projects, the peak is basically at the opening, which is not good for the project team or Binance.

For users, it's also not good; it's just mindless shorting. Even if they are currently stuck with some tokens, multi-data tokens are likely to recover after some time. But if the tokens cannot be traded, the longer the holding period, the more likely investors might forget about them. For example, I often forget. 🤣

  1. Similar to point 2, the main reason for point 2 is to hope to reduce one-time sell-offs. However, if these tokens cannot be traded but have enough application scenarios or staking, allowing users to engage with them first might help them become familiar with the project itself. This could deepen their understanding of the project, leading them to actively lock up more tokens, but I think this is also not easy to achieve.

  2. There might be other hidden gameplay, but I don't know about that. However, Binance has made quite a few attempts in the airdrop field, so let's see what innovations the new model brings. But overall, the most important thing is still to enable users to make money.

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