Binance has made changes to its token listing methods after some community members alleged malpractice on the part of employees involved in the process.
Binance co-founder Yi He wrote on X (formerly Twitter) commenting on the latest community reaction, noting that internal mechanisms will be implemented and its token listing procedure adjusted.
Price Irregularities Hit When Tokens are Listed
The recent incident occurred following a price plunge for Ronin (RON) after the token was listed on Binance. Ther are reports of similar incidents with other tokens flagged by users after tracking on-chain transactions.
— Yi He (@heyibinance) February 5, 2024
According to the executive, it is not uncommon for the community to over-promote tokens, still, RON’s recent price drop triggered heated discussions leading to new adjustments.
“The community began to discuss the listing of RONIN on Binance. After careful consideration, we have decided to list the currency now. On this basis, the following adjustments are made…”
First, the cryptocurrency exchange will see internal changes requiring team members to enforce stricter management requirements. The goal is to effectively punish any information leakage with warnings and subsequent terminations.
Project communication and token models will be reinforced for external considerations to improve the process. Subsequently, if there is a leak, the affected token listing will be canceled.
Binance Offers $5 Million to Tighten Measures
A $10,000 to $5 million security bonus was announced to users who identify corrupt Binance staff regarding coin listings and associated incidents. This will spur community participation in the process and add an extra layer of transparency after users debate along cryptocurrency spaces.
“If you verify that Binance team members are corrupt, we will keep your identity confidential and provide you with a security vulnerability bonus of US$10,000 to US$5 million. ; It is much easier and more profitable than the rat warehouse.”
The executive took it a step further to impose stricter measures for corrupt employees who join crypto projects. The exchange will permanently blacklist projects that hire verified corrupt employees.
Aside from checks on employees, Binance will improve technical monitoring as its current trading pairs and announcements are tracked by scripts.
Finally, the platform disclosed the required contract information, adding that it had taken a different approach previously because of the need to isolate token listing research, which paved the way for fraud.
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