Binance has introduced two new tools aimed at increasing token transparency: Token Lock-up Addresses and Holding Concentration Indicators. These features are already integrated into the platform’s interface and are designed to help users assess volatility risks and the actual distribution of tokens.
Purpose of Locked Addresses
Many crypto projects initially lock a portion of their tokens, for example, for the team, investors, or community incentives. These tokens are not traded until the end of their vesting period. Until now, users found it difficult to verify which amounts were truly locked.
Binance now displays which addresses hold locked tokens and exactly how much. This information is available under the Info tab for each token users can simply hover over the circulating supply figure. This allows traders to distinguish between tokens available on the market and those that are not, helping them more accurately assess liquidity and market capitalization.
How the Holding Concentration Indicator Works
The second tool — the Holding Concentration Indicator — shows how evenly tokens are distributed among holders. The indicator is represented as a number from 0 to 100. The higher the number, the more concentrated the holdings are within a small group of owners, which means a higher risk of sharp price movements.
The methodology incorporates data both on and off the Binance platform, including weighted coefficients. Users can view this indicator directly on each token’s page and use it to evaluate potential price volatility risks.
Binance’s Long-Term Transparency Strategy
The new tools are part of Binance’s broader strategy to enhance token transparency, launched in 2024. Here are the key updates already implemented on the platform:
- September 2024: Token unlock charts and vesting schedules integrated with CoinMarketCap data were added.
- February 2025: The methodology for displaying market capitalization and token supply was updated to account for unlock schedules.
- April 2025: Links to project financial reports were added directly on their token pages.
According to Binance, the platform is focused on helping traders make informed decisions with a full and clear view of the market. These new features help users understand who controls a token, how much is actually available for trading, and what risks their investment might carry.
Binance co-founder Yi He also emphasized that these initiatives are a response to community demand for higher levels of transparency.
Previously: Binance Introduces Crypto Inheritance Feature as CZ Urges Other Exchanges to Follow
This post is for informational purposes only and is not an ad or investment advice. Please do your own research making any decisions.
