Token’s cliff period is extended

Binance Holdings Ltd. is making changes to its procedures for listing tokens in an effort to strengthen investor protection and filter out dubious crypto projects. The move comes in response to incidents where investors were deceived by unverified digital assets involved in schemes like rug pulls, resulting in significant financial losses. Binance aims to prevent such occurrences by enhancing its listing criteria, particularly concerning the “cliff period,” which is the timeframe during which a portion of the total coin supply is locked within a smart contract. The exchange has extended the required cliff period to a minimum of one year, up from the previous maximum of six months. Binance is also looking to allocate a larger fraction of tradable tokens to market makers to ensure sufficient liquidity. These policy adjustments are part of Binance’s broader initiative to improve regulatory compliance and investor safety following a challenging year marred by legal challenges and regulatory scrutiny.