Exchanges

Binance is launching Binance Research in an effort to keep projects accountable

Quick Take

  • Binance announced it is launching a new division called Binance Research, the company’s third crypto-related education initiative to launch this year
  • Binance Research will release in-depth reports detailing specific cryptocurrency projects
  • As a demonstration of depth and breadth, Binance has released two reports on Loom Network and GoChain
  • The Block examined the sample reports and the quality is high while the tone is impartial

Binance, the largest cryptocurrency exchange in the world, announced Thursday that it is launching a new division called Binance Research. The newly formed division is striving to provide “in-depth analysis and data-driven insights of digital assets by generating unbiased, institutional-grade research reports”.

Binance Research becomes the company’s third education initiative to launch this year. Binance Info launched in February to provide a database of information on various cryptocurrencies. In August, it launched Binance Academy, an education platform for users to take lessons on blockchain and cryptocurrencies, spanning basic to advanced knowledge.

Binance Research will release in-depth reports detailing specific cryptocurrency projects, all of which are already listed for trading on Binance. With the new initiative, Binance becomes the second exchange after Circle to produce such reports and far from the only organization in the space. Messari’s Agora is already releasing similar crypto asset reports through its research community.

The Binance Research team said: “Binance Research reports show the level of transparency we want all projects to publicize. We hope these reports will raise the standard for transparency in the industry overall, and provide the community with insight into the progress, commitment, and authenticity of each project.”

New reports will be published regularly as Binance is hoping to eventually cover all the quality projects in the industry. In order to ensure accountability, though, the new division will continue to evaluate the projects on an ongoing basis and release updates periodically as new developments occur. The company is hoping the new division will give an insight into Binance’s listing process as it will release a comprehensive report with each new listing on the exchange.

Binance says the “institutional-grade, objective reports will remain fair and unbiased, providing comprehensive insight into each project as a source of credible information.” The research division will also leverage direct access to the teams to clarify details relating to each project. To demonstrate Binance’s intent to produce deep, high-quality work, the company released the team’s first two reports on Loom Network and GoChain.

Before the official release, The Block read the report on Loom Network and the quality seems very high. The report also seems to be quite impartial considering a massive conflict of interest — Binance is making a market in these tokens but all these reports are only credible if they tell it like it is. The Loom report delves into the economics of the token ecosystem and even covers uncomfortable information such as the top 100 holders collectively own 90.3% of total supply. It also discloses that Loom Network has already used 15% of the raised funds and breaks down what the money was used for.

One thing very much worth watching is how Binance Research approaches the reports on tokens that aren’t performing well or delivering on promises made early on. The discomfort about disclosing the tightly held nature of Loom might be just the beginning for Binance, which has listed many of these tokens for a while now. 

The reports will also track the original roadmaps and measure how well teams are delivering on the promises they made when raising funds. It is common practice in the crypto industry to change roadmaps constantly to reflect the delays while obfuscating the original plan. A very helpful technical section of the report is the analysis of Github developments, which shows the frequency of “commits” to the project’s collection of repositories.

Overall, it seems that Binance is making a good faith effort to improve transparency on the exchange. Provided that the quality remains high, the detailed reports that Binance will start releasing voluntarily will provide valuable intelligence to all the readers and could potentially also help to keep crypto project teams accountable. If successful, Binance could create a prestigious place for projects to demonstrate their merit and show how they are better than others — without all the marketing fluff that is all too pervasive in crypto.

Update: This article has been updated to correct that Binance was in fact the second exchange to publish crypto asset reports after Circle.