Controversy Arises from Listing High-Risk Tokens! Binance Launches "Innovation Zone" Trading Section, Changpeng Zhao: BNB Was Once a High-Risk Investment as Well

Given the recent DeFi craze, various projects have been launching governance tokens, which have experienced extreme volatility fueled by investors' FOMO. In response to this high-risk environment, Binance has announced the launch of a new trading section called the "Innovation Zone" specifically for these tokens. Two quiz questions have been set up, and users must answer them correctly before they can proceed with trading.

New Trading Section "Innovation Zone"

According to the announcement by Binance on September 21st, a new trading section called "Innovation" has been launched. This is the sixth trading section, with other sections including "DeFi," "PoW," "Mining Pool," "PoS," and "Storage."

Similar trading sections like the "Innovation Zone" are not unprecedented and have existed for many years on domestic and foreign exchanges. Binance CEO Changpeng Zhao (CZ) mentioned the recent challenges in listing new coins, stating:

We need to list popular projects while excluding scams and low-quality projects. However, each investor has a different definition of "popular," making it difficult to balance these factors, especially in terms of listing speed.

Should Anonymous Development Projects Be Listed?

Normally, Binance requires project founders to submit listing applications. However, recently, projects like SushiSwap (SUSHI) were launched by anonymous developers, leading to scrutiny of Binance's listing standards. CZ explained:

Please understand that Binance has listed many coins in the past where the project founders could not be contacted, including Bitcoin, the creator of which, Satoshi Nakamoto, remains unknown to this day. If it is a "popular" project, the exchange will list the token on its own. If Binance does not proactively list it, please fill out the listing application form seriously, as this is the only intervention and review action we will take.

Understanding Risks with Two Questions

Although the "Innovation Zone" currently only has two tokens, a warning message pops up upon entering the trading page, requiring correct answers to proceed:

• What is the likelihood of experiencing partial or total asset loss in the Innovation Zone?

  A Greater than 50%
  B Less than 50%

• In the event of investment failure or total asset loss, who is responsible?

  A The investor themselves
  B Binance

How should users balance their trading needs with the risks they may face? CZ believes that Binance Coin (BNB) was also a "high-risk investment" at one point, but ultimately brought significant returns to early investors. He concluded:

Imagine if Binance did not give investors the same opportunity to participate in certain tokens because they were considered "too risky." The outcome would be what? As the saying goes, "Do your own research (DYOR)," and take responsibility for your investments.

It was also mentioned recently that according to statistics from The Block, DeFi tokens have experienced at least a 40% drop in the past month. This includes bZx, which faced multiple security incidents, and SUSHI, which plummeted after the launch of Uniswap, emphasizing the importance of investors maintaining rationality and caution amidst profit-driven decisions.