The cryptocurrency exchange Binance unveiled an ‘Innovation Zone’ for trading DeFi tokens. Access will be granted to only a subset of platform users.
«The team has created the Innovation Zone, which will allow users to trade newer token offerings from the comfort of their Binance account, while at the same time protecting less suited users from being exposed to the “risk” that comes with trading them.»https://t.co/ZzHSkTbUWw
— Binance (@binance) September 21, 2020
Binance positions the new service as a safe space for trading DeFi assets with high volatility. Users will be able to access the “Innovation Zone” by answering two questions:
- Are you willing to lose 50% of capital and more?
- Are you prepared to take responsibility for these losses?
«Thus we can prevent adverse scenarios for users who simply want access to certain projects», the statement said.
The head of Binance, Changpeng Zhao, noted that to stay competitive the platform needs to add new popular tokens. But buying everything on the exchange, he calls “not a very good strategy.”
«We hope that we can filter out those who should not trade the projects of the Innovation Zone from more advanced traders with proper risk approaches and mindsets», Zhao said.
Earlier, analyst Larry Chermak criticized the Binance CEO for listing the token of the DeFi platform SushiSwap. In response Zhao urged not to forget about risk management.
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