Concerns Over Binance’s Token Listing Process

Changpeng “CZ” Zhao, the founder and former CEO of Binance, expressed concerns regarding the exchange’s token listing process, labeling it as “a bit broken.”

Zhao highlighted issues with the rapid timeline from announcement to listing, which typically occurs within four hours. This quick turnaround can lead to price fluctuations on decentralized exchanges (DEXs).

> “As an observer, I think the Binance listing process is a bit broken,” Zhao wrote on X. “They announce, then list 4 hours later. The notice period is necessary, but in that time, token prices can spike on DEXes, then people sell on centralized exchanges (CEXs)… Not sure if there is a solution for this though. Just beware.”

In contrast, other exchanges like Coinbase and Kraken have different approaches to new asset listings. Coinbase typically produces a page of upcoming listings, while Kraken provides blog updates when new tokens become available for trading.

Zhao’s comments arose alongside a surge in popularity for TST, a memecoin featured in a BNB Chain video tutorial as an example of launching memecoins via the Four.Meme platform. TST gained traction particularly after Zhao posted on X last week to clarify that he was not endorsing the coin.

On Sunday, Binance announced it would list TST/USDT and TST/USDC trading pairs, prompting Zhao to share his views about memecoins.

As of now, TST is trading at approximately $0.19 on Binance, exhibiting a 38% increase since its listing. Its market capitalization is reported at $185.9 million with a fully diluted market cap of $195.5 million.

Zhao emphasized, “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 for whatever reason.” He added, “Why did TST get listed on Binance? I don’t know for sure. I am entirely NOT involved in their listing process.”