Changpeng Zhao (CZ), the former CEO of Binance, has criticized the exchange’s token listing process, calling it “a bit broken” due to its impact on market prices.
Speaking on social media platform X on February 9, CZ highlighted how Binance’s practice of announcing token listings four hours before trading starts often causes sharp price surges on decentralized exchanges (DEXs) before centralized exchange (CEX) activity begins.
CZ Warns Traders About Binance’s Listing System
CZ’s comments were prompted by the recent Test Token (TST) listing on Binance. He clarified that TST was created as a test asset for a tutorial and had no official endorsement from Binance or himself. However, the token saw a surge in price due to speculation before being traded on the CEX.
“As an observer, I think the Binance listing process is a bit broken,” CZ wrote. “The notice period is necessary, but in those four hours, token prices go high on DEXs, and then people sell on CEX.”
While acknowledging the listing challenges exchanges face, he added: “Not sure if there is a solution for this though. Just beware.”
Competitive Pressure & The Race to List Popular Coins
CZ addressed broader concerns and explained why certain tokens get listed faster than others. He pointed to the fierce competition among exchanges, stating:
“Exchanges must compete to list popular coins (with trading volume) as early as possible. If your coin is actively sought after by traders, you don’t need to talk to exchanges. As I always say, work on your project, not the exchanges.”
This highlights the market-driven nature of token listings, where user demand and trading volume dictate which tokens make it onto major exchanges.
CZ Dismisses Speculation About Meme Coins & Personal Holdings
CZ also responded to questions regarding his involvement in meme coins and his evolving stance on crypto assets. He clarified that he has not personally bought any meme coins and remains focused on fundamentals rather than hype-driven assets.
“I haven’t bought a single meme coin so far,” he stated. However, he also emphasized that not investing in meme coins does not mean he disapproves of them, adding:
“Not ‘into’ something doesn’t mean I am against it. I am not into sports cars; I don’t collect art; I haven’t bought any NFTs; I also haven’t bought most altcoins (I hold BTC and BNB).”
What’s Next for Binance’s Listing Process?
CZ’s remarks have reignited debate over Binance’s listing strategy, raising questions about whether current practices contribute to market manipulation.
While Binance has yet to respond to CZ’s comments, traders and regulators may push for greater transparency and measures to prevent artificial price inflation on DEXs before CEX listings.
