Binance launches an Innovation Zone to let users trade new DeFi tokens

By: Jinia Shawdagor
Jinia Shawdagor
Jinia is a cryptocurrency and blockchain enthusiast based in Sweden. She loves everything positive, travelling, and extracting joy and… read more.
on Sep 22, 2020
  • The Innovation Zone requires users to risk losing 50% or more of their principal capital.
  • Through this zone, Binance aims to filter out traders based on their risk appetite.
  • Binance listed SUN as the first token in the Innovation Zone.

Binance exchange has launched a new trading zone dubbed Innovation Zone. The exchange unveiled this news through an official announcement, noting that the Innovation Zone lets users trade new, innovative tokens that tend to have higher volatility and pose a higher risk than others. Through the Innovation Zone, Binance aims to filter out traders based on their appetite for risk. In so doing, the exchange meets the demands of daring traders, while protecting less-suited users from the volatility associated with such coins.

In the announcement, Binance asserted that all users will have to visit the web version of the Innovation Zone and go through the Binance Terms of Use carefully. In addition to this, the users will have to fill out a questionnaire as part of the initial disclaimers.

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Reportedly, the questionnaire features two questions. These are whether a user is willing to take a 50% or more loss on their capital, and whether they are prepared to take responsibility for such a loss. If the answer to either question is no, then Binance will not let the user trade new DeFi tokens that the exchange intends to list in the future.

Binance lists SUN as the first coin in its Innovation Zone

Explaining why creating the Innovation Zone was necessary, Binance said,

“By forming the Innovation Zone, we can provide our users with a safer space for accessing newer tokens that will likely have higher volatility than other tokens. This way, we are able to prevent more untoward scenarios for our users who just want to access certain projects.”

To start, the exchange listed SUN, and the coin’s trading started on September 21 at 2.00 PM UTC. The available trading pairs at the moment are SUN/BTC and SUN/USDT. Binance went on to caution all users that seek to trade the token, noting that the coin is relatively new and that it poses a higher risk than normal. As such all interested users should exercise risk management, ensure they conduct research regarding the token’s fundamentals, and fully understand the project before proceeding to trade.

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