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- Binance reached out to several projects, inquiring about their market makers and their willingness to potentially contribute a portion of their tokens to Binance savings pools.
- The strategy aims to enhance market liquidity and reduce the vulnerability to price manipulation.
Binance, the global leader in cryptocurrency exchange as measured by trading volume, has reached out to several crypto projects that possess tokens with limited liquidity. The outreach is positioned as an effort to "enhance their liquidity protection."
"Over the past week, our team reached out to a small number of projects that issue digital assets listed on our platform as part of our ongoing risk management initiative," a spokesperson told CoinCryptoUs by email. "These projects have relatively lower market liquidity trading pairs and/or a smaller market capitalization, which potentially exposes users to risk, including potential market manipulation."
The request for information regarding the market makers involved in the projects, along with their potential willingness to allocate up to 5% of their circulating tokens to Binance's savings pools in exchange for interest, has been made by the exchange. The Block, the news source that initially reported this information, indicates that comparable inquiries are visible in unverified screenshots shared on X, the social media platform formerly recognized as Twitter.
“The main purpose of our risk management outreach is to encourage project teams to take the recommended steps required to enhance their liquidity protection," the spokesperson said. "Engaging market maker support is one way to enhance such protection.”
