Binance, a leading global platform, takes a critical step towards transparency by introducing two new features. Concentration indicator.
These tools are designed to provide users with a clearer view of the potential risks of token distribution and volatility, thus enhancing the trust and security of their trading operations.
Why is transparency important in the crypto world? News from Binance
Toconomics Crypto projects are complex and often not easily accessible to experienced investors.
Actual understanding Circulating supply Tokening or evaluating how ownership is distributed is a key factor in avoiding surprises and making informed decisions.
Recognizing these needs, Binance has decided to equip its platform with tools that simplify the reading of essential data and make the market more transparent and accessible.
Many cryptocurrency projects have chosen Lock part of the token For strategic reasons, such as encouraging the long-term commitment of a team, investor or community.
These tokens are included Locked addressleave it inaccessible until the end of the given “best” period. However, a lack of visibility into these details can lead to misconceptions about the actual liquidity or market capitalization of an asset.
The new blocked address feature allows Binance to quickly display this information within the platform.
Users will check if some of the token offerings are actually locked, monitor the amounts of stakeholders, and consider them in their trading strategies.
Just access to information Token tabs and hovering Circulating supply To get accurate details about how locked addresses affect the overall distribution.
This innovation allows us to provide you with more accurate data to assess the actual value of your project, as well as tokens that are in circulation and temporarily inaccessible tokens.
Important Question: How are tokens distributed?
It involves another aspect that is often overlooked Centralized ownership of tokens. When a small number of holders control the majority of supply, the risk of sudden price movements increases dramatically.
However, to this day there has been no easy and immediate tool to evaluate this parameter.
The concentration indicator provides users with a snapshot of the distribution of token ownership. Weighted Average Formula This takes into account both internal and external data to the Binance platform.
The result is a Scores from 0 to 100: The higher the score, the higher the concentration and therefore the higher the potential risk of volatility. A low score results in a wider distribution and potentially greater stability.
Therefore, this indicator can be a valuable tool for those who want to quickly assess risks associated with a particular asset and integrates with other factors in their investment decisions.
The new features are part of Binance’s broader strategy since 2024, which has gradually expanded the platform with the next tool. Token Transparency:
– Token unlock and vesting schedule (September 2024): Integrate CoinMarketCap data to show your upcoming unlocks and best timeline directly in Binance.
– Update token methodology (February 2025): Review of calculation criteria and presentation of market capitalization and circular supply.
– Financial Report (April 2025): Link your project’s financial report directly to the token information page, providing users with a more comprehensive overview.
Purpose: Provide information, educate and empower
According to Yi, co-founder of Binance, “users want more transparency and tools to better understand the tokens they are trading on.”
The platform’s commitment is not limited to data provision; Establish new standards Educate and empower the community for market transparency.
The more the user understands the structure of the token, the better decisions they can make who holds it and how it cycles when unlocking it.
At the same time, the growing demand for transparency will make projects more responsible and improve the entire crypto ecosystem.
The introduction of blocked addresses and concentration indicators represents an even further step in Binance’s mission to make the cryptocurrency market safer, more transparent and accessible.
These tools are integrated directly into the platform’s interface, allowing users to contribute to a healthier, informed trading environment, raising awareness and assessing risks and opportunities.
Therefore, Binance is ready to welcome suggestions and feedback to continue improving by protecting the interests of its users.
In a constantly evolving sector, transparency remains the key to building trust and ensuring a sustainable future across the bull and bear crypto world.