In a bid to counter the prevailing trend of low float and high fully diluted valuations (FDV) plaguing the cryptocurrency sphere, Binance, a leading crypto exchange, has issued a rallying call to small and medium-sized projects. The platform contends that by championing projects with robust fundamentals, it can foster a healthier blockchain ecosystem.

Today, on May 20, Binance opened its doors to small and medium-sized ventures, urging them to participate in its listing programs. The initiative aims to throw support behind projects boasting sustainable models, organic community bases, viable business strategies, and committed teams, all of which are deemed essential for responsible participation in the industry.

This proactive stance comes in response to a troubling pattern observed within the crypto space. Binance Research recently shed light on the growing prevalence of projects launching with minimal circulating supplies, opting instead to reserve a significant portion of tokens for future release. While such strategies can lead to rapid price surges during bullish market conditions due to constrained liquidity, Binance warns that this growth is inherently unstable. Once these locked tokens are unleashed into the market, they often trigger a cascade of sell-offs, exerting downward pressure on prices.

Pseudonymous crypto researcher Flow echoed these concerns, revealing that a staggering 80% of tokens listed on Binance over the past six months have plummeted in value post-launch. Flow suggests that many of these tokens primarily serve as "exit liquidity" for insiders looking to capitalize on restricted retail access resulting from artificially low initial circulating supplies.

The impending release of approximately $3 billion worth of vested crypto tokens, slated to occur in May 2024, further underscores the urgency of addressing this issue. Notable projects like Sui and Pyth Network are poised to unlock over $1 billion in crypto tokens, potentially flooding the market with excess supply.

Looking ahead, Binance predicts that token unlocks will continue to exert significant sell pressure on the market, with an estimated $155 billion worth of tokens set to be released between 2024 and 2030. Without a corresponding surge in demand or capital inflows, this influx of tokens threatens to destabilize the crypto landscape, underscoring the importance of fostering projects with sustainable growth trajectories.

By championing small and medium-sized ventures with strong fundamentals, Binance aims to cultivate a more resilient and balanced crypto ecosystem, one that can weather the storms of token unlocks and market dynamics with greater stability and confidence.