This Innovation Zone is coming off the back of allegations which claims that Binance rushes into listing DeFi tokens without doing a proper background check on their credibility.
In his explanation, Binance CEO, Changpeng Zhao, explained that Binance Innovation Zone would look to weed out specific traders from trading new DeFi tokens based on their risk preference. In this new Zone, some few selected users would be able to trade in a market that favours very high volatility while others would trade in a safe market.
Users to satisfy conditions before accessing the Binance Innovation Zone
Going further, Binance CEO, Changpeng Zhao also mentioned that Binance would not seek approval from the developers of DeFi tokens before they are listed on their platforms. Meanwhile, Binance has said that only tokens with high prices that favours volatility will be listed in the Zone.
Notably, the first coin that would be listed in the Binance Innovation Zone would be the SUN token which is on the TRON blockchain. For users to be included in the innovation Zone, they must be ready to agree to incur a loss of more than 50% of their capital and take full responsibility for their loss.
Binance called out for listing tokens without credibility checks
Changpeng Zhao has further said the Binance Innovation Zone would most likely kick off with popular tokens, but people need to carry out their findings before trading the tokens.
Binance was called out for listing tokens immediately the tokens are released with the first case being that of Uniswap protocol token, UNI which took Binance only one hour before listing it. Another high profile listing was that of SUSHI and days after the exchange listed the token, the founder and developer dumped the token which saw investors lose almost all their funds.