Binance Co-Founder Explains Token Listing Policies Amid Industry Rumors
A dispute flared in the crypto industry when the CEO of Moonrock Capital claimed that Binance insisted on taking 15% of a project’s total token supply as a condition for listing at its exchange. Binance co-founder Yi He took to social media and denied these claims in front of everybody, underlining the transparency and integrity of Binance’s listing policy. She further clarified them does not require any projects to give up a portion of their tokens, let alone paying a so-called necessary listing fee-a rumor that has been across the entire industry for quite a while.
Binance Transparency of Listing Fees
Binance has been very transparent about its listing fee policy since 2018. Instead of commanding any fixed fee for listing, Binance allows the project to quote their listing fee in some form of donation. As Yi He affirms, “100% of those listing fees flow to charities now, which further reinforces that Binance is committed to transparency and ethical means of doing business.”. This means that Binance has a policy where all fees are voluntarily donated, no minimum threshold, and projects are not mandated to give any token share in exchange for a listing.
Community Reactions and Wider Scrutiny of Centralized Exchanges
The claims by Moonrock Capital’s CEO initiated further debates on the listing practices of centralized exchanges, as voices within the crypto community raised questions about the policy integrity across the board. For example, Andre Cronje, the co-founder of Sonic, joined the discussion with concerns over similar practices on Coinbase. According to many in the community, such fees or token shares weaken the principles of decentralization, perhaps never more so than when some of these smaller or up-and-coming projects might face an exorbitant barrier to entry.
Decline in Centralized Exchange Trading Volume
Centralized exchanges like Binance and others, on the other hand, saw a decrease in trading volume. The spot trading volume of them was down 23% in September 2024. Similarly, OKX, Coinbase, and Kraken recorded similar declines. Among analysts, these declines can be traced to various factors: increase in geopolitical tension, uncertainty over U.S. elections, and growing momentum for decentralized exchanges. Decentralized platforms allow one to avoid intermediary fees and give direct control over one’s assets. As such, they have become increasingly attractive to a growing number of crypto investors.
The Evolving Role of Centralized Exchanges
It is in this fast-changing market that one has to delve into the desirability of being responsible in listing policy at them, even as increased pressure is put on centralized exchanges by greater use of decentralized exchanges to change their services offered if they are to remain relevant. Though Binance’s approach could be a guideline for the rest, debates on decentralization are a case that could further alter how Centralized Exchanges work due to the competitive nature.
