BNB Chain Introduces $100M Liquidity Initiative

BNB Chain (BNB) has announced a $100 million liquidity incentive program aimed at boosting liquidity for its native projects on centralized exchanges (CEXs).

The initiative, announced on March 24, will allocate incentives primarily in the form of BNB tokens to projects that successfully list on any of 11 specified major centralized exchanges.

Program Details and Eligibility

The liquidity incentive program will initially run for a three-month trial period on a first-come, first-served basis. Eligible projects must meet specific criteria, including:

• A minimum market capitalization of $5 million
• At least $1 million in daily trading volume

The largest rewards, amounting to $500,000 in permanent liquidity, are reserved for projects listed on major exchanges such as Binance and Coinbase. Rewards will vary based on the prominence of the exchange listing and may include non-withdrawable BNB token liquidity or two-sided liquidity involving project token purchases.

Previous Initiatives and Ecosystem Growth

This latest initiative follows two smaller liquidity incentive programs launched earlier, each allocating $4.4 million in February and March to support memecoins and other ecosystem projects.

BNB Chain stated that the new program aims to “further enhance BNB Chain’s ecosystem liquidity and foster project growth by incentivizing exchanges to list native BNB Chain tokens.”

Lagging Behind Competitors

Currently, BNB Chain ranks fourth among blockchain networks by total value locked (TVL), with approximately $5.4 billion, according to data from DefiLlama. It trails behind Ethereum ($46 billion) and Solana ($7 billion).

Recent Controversies and Binance Connection

BNB Chain is affiliated with Binance, the world’s largest cryptocurrency exchange. Recently, Binance has faced scrutiny following reports of potential acquisition talks involving entities affiliated with former US President Donald Trump. Former Binance CEO Changpeng “CZ” Zhao has denied these claims, including allegations that a deal was contingent upon a presidential pardon.

In 2023, Binance agreed to pay a $4.3 billion penalty, and Zhao pleaded guilty to one count of violating the Bank Secrecy Act due to shortcomings in Binance’s Anti-Money Laundering program.

Related: Binance CEO reiterates denial of Trump family deal talks

Magazine: Trump’s crypto ventures raise conflict of interest, insider trading questions

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