Binance, the world’s largest crypto exchange by trading volume, has taken steps to enhance their liquidity protection for some crypto projects with low-liquidity tokens. A spokesperson for the exchange told journalists, 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 exchange has asked for details about the projects’ market makers and whether they would consider contributing up to 5% of their circulating tokens to Binance saving pools in return for interest, according to The Block. Unverified screenshots posted on X, the social media platform formerly known as Twitter, also show similar requests.
The spokesperson further stated, The main purpose of our risk management outreach is to encourage project teams to take the recommended steps required to enhance their liquidity protection. Engaging market maker support is one way to enhance such protection.