Cryptocurrency Q&A
What happens when a coin is listed on Binance?
What happens when a coin is listed on Binance?
alexander_smith_musician
Mon Aug 05 2024
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5 answers
770
So, let me get this straight - when a cryptocurrency coin is listed on the Binance exchange, what exactly does that entail? Does it mean that the coin's value automatically skyrockets? Or does it simply mean that traders now have access to buy and sell the coin on a more reputable and liquid platform? Also, does the listing process involve any form of due diligence or vetting by Binance to ensure the coin's legitimacy? And lastly, are there any fees associated with listing a coin on Binance, and if so, who typically bears the burden of these costs?
5 answers
Tommaso
Wed Aug 07 2024
Cryptocurrency markets operate on the principle of supply and demand, with prices fluctuating based on the interaction between buyers and sellers. In the case of a newly listed cryptocurrency, the initial market dynamics can be particularly volatile.
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Daniele
Wed Aug 07 2024
During the initial launch phase, there is typically little to no supply of the new asset available for purchase. This is because the creators of the cryptocurrency have likely retained a significant portion of the total supply for themselves or for strategic partners.
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KatanaSword
Tue Aug 06 2024
As a result, when the new cryptocurrency is listed on an exchange, there may be a surge of buyers eager to acquire the asset but few or no sellers willing to part with their holdings. This creates a situation where demand far outstrips supply.
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DigitalDukedom
Tue Aug 06 2024
In such scenarios, the price of the asset can rise rapidly as buyers compete with each other to purchase the limited supply available. This is because each buyer is willing to pay a higher price in order to secure their desired quantity of the cryptocurrency.
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StormGalaxy
Tue Aug 06 2024
The price continues to rise until a seller finally appears who is willing to part with their holdings at the current market price. At this point, the buyer who is willing to pay the highest price will be able to acquire the cryptocurrency, and the price will stabilize at that level.
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