Changpeng Zhao Criticizes Binance’s Token Listing Process as “A Bit Broken” – CryptoNinjas

Key Takeaways:

• Former Binance CEO CZ has publicly criticized the exchange’s token listing process.
• CZ criticized the short time frame between the listing announcement and the start of trading.
• The rise of meme coins like TST is complicating the market landscape.

Initially praised for its strict listing process, Binance is now being criticized by its own founder, Changpeng Zhao. CZ, former CEO of the world’s largest cryptocurrency exchange, took to social media to criticize Binance’s token listing process as “a bit broken.” Through this criticism, he draws attention to the hustling that exists in this framework and the obstruction of the process that something as transient as a meme coin can bring about.

CZ’s Concerns About Binance’s Token Listing Process

CZ, also known as Changpeng Zhao, has raised significant concerns about Binance’s token listing process. According to him, the process is “a bit broken” and there is a necessity for proper evaluation. The main point of this argument is that there is hardly any time for people to react between the listing announcement and the official start of trading which is mostly four hours. CZ argues that this short time frame encourages extreme price fluctuations and reduces profitable arbitrage opportunities on DEXs (decentralized exchanges).

CZ pointed out that during this short time frame before a token launches on Binance, certain traders manipulate prices on DEXs, leading to inflated valuations. In this case, information asymmetry prevails as those who are tipped off re-sell their assets to private investors before the latter even know of their existence. CZ took a jab at the process in a post on X (formerly Twitter) on Sunday by noting: “As an observer, I think the Binance listing process is a bit broken. They announce, then list 4 hours later. The notice period is necessary, but in those 4 hours, the token prices go high on DEXes, and then people sell on CEX… Not sure if there is a solution for this though. Just beware.”

The thing that I remarked on was not so much the announcement itself, but the timing. A notice period is essential for transparency, but it also opens the door to front-running and market manipulation. With his statement, CZ has drawn attention to the increase in fairness and accessibility of the crypto world, as is the main concern now.

Last lastly, as an observer, I think the Binance listing process is a bit broken. They announce, then list 4 hours later. The notice period is necessary, but in those 4 hours, the token prices go high on DEXes, and then people sell on CEX…

Not sure if there is a solution for…

— CZ 🔶 BNB (@cz_binance) February 9, 2025

The Unexpected Rise of The TST Memecoin: A Case Study

The TST coin mentioned in this article is coming on the heels of the recent craze in popularity of the TST memecoin. TST gained attention after being featured as an example token in a BNB Chain tutorial video. Though CZ denied to be part of the project, the announcement gave it so much publicity, turning it instantly viral.

Nonetheless, Binance chose to list the TST trading alongside the pairs: (TST/USDT and TST/USDC). This decision prompted CZ to criticize the exchange’s listing practices.

Currently, TST is trading on Binance at approximately $0.19, marking a 38% increase from its $0.14 opening price. Its market cap at the moment is $185.9 million and its fully diluted market cap is 195.5 million. These numbers are quite big considering that the coin has started as a joke.

According to CZ “I posted to clarify that TST was NOT endorsed by me/us. It was just a test token used in a video tutorial. But every clarification post made it more viral for whatever reason.” He also added, “Why is TST listed on Binance? I don’t know for sure. I am ENTIRELY NOT involved in their listing process.”

The TST story highlights the complexities of the current blockchain market. It also provokes the question of what factors are finding the way for new token discipline and whether bourses are prepared enough for the meme coins deluge to slow down.

How Other Exchanges Approach Token Listings

Unlike Binance, other exchanges adopt different strategies when listing new tokens. They prefer to focus on transparency and stability in the process that happens there.

• Coinbase: Coinbase is renowned for its practice of creating a special webpage to announce addition of new listings, making the potential investors aware of such a development well in advance and letting them have some time to investigate. This approach shows that Coinbase is managing and providing information to its investors in a certain way.
• Kraken: Expertly drafted blog posts are the norm at Kraken in case the team lists new tokens. There we get insider insights into the token listing and Kraken’s team appears to be quite involved in the process.

These alternative listing approaches enhance transparency and provide traders with more time to assess tokens, potentially reducing the risk of manipulation and excessive volatility.

More News: Coinbase Re-evaluates Listing Criteria

Will Binance Reconsider Its Listing Process?

Will Binance take CZ’s criticism into account? Some analysts believe the exchange should adopt a more transparent listing process. The fast procedure of listing tokens can be very convenient for the exchange, however, inversely, it can make way for negative effects on the investors as well.

Many analysts reckon that Binance needs to adopt a more transparent token listing process. Such a method will give investors all the necessary time to examine and to ponder trading which can result in fewer price differences. Binance should think about listing the tokens, which they will do via DEXs, in order to minimize the price discrepancies too.

Balancing between responsiveness and proper behavior is the essence of the matter. Exchanges have to act quickly to take advantage of available market opportunities, but, at the same time, they have an obligation to protect their clients from such illegal practices.

The Growing Influence of Memecoins and the Lack of Fundamentals

At the present moment, the market has been witnessing an increase in meme coins and a lower supply of them without strong fundamentals.

The rapid proliferation of TST and other meme coins has, to a great extent, changed the cryptocurrency exchange scene.

TST/USDT. Source: Binance

The boom of memecoins carries with it both good news and potential hazards, and naturally, it requires exchanges to accommodate and adjust to this novel situation.

Previously, listing on a major exchange such as Binance was a rigorous process that needed intense due diligence. The recent FOMO-like meme coin frenzy turned the tables in the market. Today, it seems like speed and volume become the main aims of the platforms. These changes lead to the fundamental question about the market’s future course and the role the sellers play in shaping it.

The simplicity of launching meme coins worsens the problem. Available platforms like Pump.fun provide everyone the speed to roll out tokens in seconds, as a result, most of the new tokens that are rolled out have no value.

CZ’s Past Endorsements on Binance and the Fundamentals of Crypto Projects

Over the last year, CZ has mostly been known to support projects that are strong in their fundamentals, but the crypto space has a different opinion in CZ’s involvement with the TST token, which was a meme coin. CZ admitted that it is difficult to get the listings on Binance, but at the same time, CZ made the officials consider listing more coins on DEX exchanges as well.

A user argued that simultaneous listing on CEXs and DEXs should be done, and Zhao responded: “I tend to agree. I think CEX should list (almost) everything automatically, just like DEX. But I am not running a CEX anymore”.

That was the time when CZ took a test token for a tutorial video, which was entirely educational. The moment the video was made public, some people quickly seized the opportunity and launched a memecoin with the same name. While CZ was trying to explain that the token was not related to him at all as it was meant to be a test-token, on the contrary, it reached even more people and became more viral.

According to CZ, exchanges should strive to be the first to list those cryptocurrencies that are sold in the highest volume right away. On the back of a continuously dynamic interest from traders, the need to approach more exchanges, becomes superfluous.

CZ also mentioned that memes have become a cultural phenomenon but that he himself is not an expert in the area.

This raises the question of whether Zhao Changpeng is shifting away from fundamentals.

The Future of the Crypto Industry: Between Nihilism and Innovation

In each of the cases, CZ almost daily mentioned, in his blogs as well as in the community, the BNB Chain project, and consequently, in order to calm the members, as usually, to say something useful to their concerns. But when you look at these personages on the side of the project, they are not working well enough which leads to disappointing results. Such a mood can force you to make some questions like it is still a system that is not performing well and giving no wealth while it might be a time for its total implementation with the desired delight.

The cause of the issue at hand is not limited to Binance in particular but it is much more severe in the entirety of the crypto sphere: crypto nihilism, one meme after another sucking blood, lack of industry innovation, and selling coins becoming the main business of the project side. However, at the end of the day, the investors are on the hook and they are the ones who should focus on the potential problems which may come along with the investments and the fact that they might lose those investments they can afford to, only.

The crypto industry has put itself in a tough position as its coins have largely become the object of speculators.

At the end of the day, it is the market that will decide the destiny of the meme coins and the direction of the future of the crypto industry. Whether the industry can address the issue of crypto nihilism, foster innovation, and sustain long-term value remains to be seen. The crypto world still has room to grow.

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