Key Takeaways:
- CZ Criticizes Binance Listings: Former Binance CEO Changpeng Zhao called Binance’s token listing process “a bit broken,” citing issues with short notice periods before listings.
- DEX Trading Impact: Pre-listing speculation on decentralized exchanges (DEXs) often drives up token prices before they are listed on centralized exchanges (CEXs), leading to volatility.
- Call for Automation: Zhao suggested CEXs could benefit from automated token listings, similar to DEXs, but acknowledged he no longer has influence over Binance’s decisions.
Changpeng Zhao (CZ), the co-founder and former CEO of Binance, has expressed concerns over the cryptocurrency exchange’s token listing process, suggesting it needs improvements to handle new listings more effectively.
He noted that Binance’s current system, which announces a token listing only four hours before trading begins, allows for significant price fluctuations on decentralized exchanges (DEXs).
TST got listed on Binance. A few thoughts:
— CZ 🔶 BNB (@cz_binance) February 9, 2025
1. CZ said “fundamentals”, then talks about a test coin turned meme coin.
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 just made it more viral…
Traders often buy tokens early on DEXs following an announcement, driving prices up before selling on centralized exchanges (CEXs), leading to substantial selling pressure.
CZ’s comments came after Binance listed the Test (TST) token, originally designed for a BNB Chain tutorial.
The token unexpectedly gained traction, reaching a market capitalization of $489 million before plummeting over 50% to around $192 million.
Despite CZ clarifying that Binance had not endorsed the token, speculative traders—especially in China—contributed to its rapid price surge and subsequent drop.
I tend to agree. I think CEX should list (almost) everything automatically, just like DEX. But I am not running a CEX anymore. 😂
— CZ 🔶 BNB (@cz_binance) February 9, 2025
To address these issues, CZ suggested that CEXs should consider automating the listing process, similar to how DEXs operate.
While he did not provide a specific solution, his remarks highlight the ongoing challenge of balancing accessibility, liquidity, and speculation in cryptocurrency markets.
CZ emphasized that he was speaking as an outsider, no longer involved in Binance’s decision-making.
About The Author
Efe Bravo, a seasoned journalist, delivers compelling insights into the cryptocurrency and blockchain industry.
His articles offer a deep dive into the latest trends, projects, and technological advancements shaping the future of digital finance.
Check Efe out on:
