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Binance is up for more and more productive launches. We all know how it garnered a lot of praise when it announced the Binance Smart Chain and now it has added another feather to its cap. Yes, this time Binance has come up with something called an Innovation zone which is touted to be a dedicated trading space allowing users to trade new, innovative tokens which are likely to have high rates of volatility and could pose high risks to them.
Source: Twitter
The first token to be listed or to be a part of the Innovation Zone is SUN token. The trading for the pair SUN/BTC and SUN/USDT opened on 21’st September. Users can now begin by depositing SUN so that they can prepare for trading. Before the users think about accessing the Innovation zone they have to first ensure they visit the web version of the Innovation zone trading page and read the Binance terms of usage. There also is a questionnaire that forms as the beginning part of the disclaimer. The Innovation zone will not put up any restrictions when it comes to trading limits on the above mentioned pairs.
The motive is very clear, Binance when got established, tried to play safe and listed only bigger and established names. But now when it has a larger user base and has become huge in terms of daily trading volume, it believes that it has to support new projects also. Of course there has to be a balance between the real potential ones and the fake ones. That is being easier said than done, but the opportunity cost of not listing a prospective token could be high for Binance.
So, while on one hand, Binance is trying to keep up with what the users want and on the other hand, Binance will continue listing new DeFi coins. In fact some coins could be just the creation of decentralized teams with no founders also.
This has led to the creation of the Innovation zone which will allow the users to trade newer token offerings from their Binance account. The innovation zone gives Binance users a safe place to trade for new and innovative projects. Currently the most used and ideal way to go for such tokens is through Decentralized exchanges but trading from them requires a high level of technical understanding and knowhow. One mistake in the wallet, and your funds might just go.
The innovation zone is a great way to provide users with a safer space for accessing new tokens which will have higher volatility than other tokens. Binance is merely providing a platform for users to safely access new projects and could-be high risk tokens. But it is always better to take the call after thoroughly researching and understanding whether you should go for it or not. Innovation zone is a means to ensure no potential token is forgone but there are no assured returns. The users will have to be the best judge.