Why Binance arranges competitions?

[tesla80]

Hello,

As you know Binance arranges altcoin competitions regularly.

The deal is to earn the given crypto that you are holding or trading.

For example top 10 volume for IOST will share 30000 IOST at given date.

What exactly Binance earns from this?

Do they just want to bring more investors in their exchange?

__OR__ They are manipulating the given coin with some trading software and they earn much more money from losers?

Is it possible?

[entemeister]

These practices are done to attract new users to the platform or to encourage trading. The platform usually earns commissions for each trade, that is one of its benefits. Sometimes they are the coin developers who organize the promotion, in collaboration with the exchange, and deliver the prize.

[Maestro75]

That is a simple marketing strategy. In some industries it is called Corporate Social Responsibility.  It is the same way offline companies have their bonanzas or charity projects in certain chosen communities. They draw the attention of investors and at the same time cave a good image for their brands. Do you wonder why Binance is the top exchange now?

[Svelto]

Apart from attracting investors, such competition help to promote the competition coin. It is a win-win situation for both Binance and the coin, Binance earn trading fees and the competition increase the coin trading volume and price.

[caisa88]

Binance is not the only one, Kucoin has similar competitions like this, and from what i remember sometimes the prizes were a lot bigger(i remember you could have even won a luxury car at a competition). These competitions are a great marketing strategy, and it seems they were succesfull for the growth of the exchanges.

[kingzpro]

These competitions are held in partnership with the specific coin, its a marketing tactic, on the other hand binance is the ultimate winner, as they attract more traders and trading activity due to these competitions resulting in more revenues for their platform.

[topchiiy86]

It's a common situation for most of top exchanges to attract big traders to their platform and so increase their trading volumes. Some exchanges like Kucoin offer extremely huge prizes for the winners, like cars. As for me I never participated in such competitions because I don't have enough deposit and I don't believe that it's possible to compete with whales.

[vaso11]

Hello,

As you know Binance arranges altcoin competitions regularly.

The deal is to earn the given crypto that you are holding or trading.

For example top 10 volume for IOST will share 30000 IOST at given date.

What exactly Binance earns from this?

Do they just want to bring more investors in their exchange?

__OR__ They are manipulating the given coin with some trading software and they earn much more money from losers?

Is it possible?

I think that they simply encourage people in this way, thus they earn more. but I think that manipulations are also present here