Coinbase Listing Fees Controversy

Tron founder Justin Sun and Andre Cronje, co-founder of Sonic Labs, criticized Coinbase for allegedly charging high listing fees. This follows Moonrock Capital CEO Simon Dedic's earlier comments about Binance's substantial fee for token listings.

Dedic mentioned that a top crypto project was offered a listing that would cost 15% of its total token supply, estimating costs between $50 to $100 million for centralized exchange (CEX) listings, lamenting the impact on project viability and market dynamics.

In response, Coinbase CEO Brian Armstrong reiterated that listing assets on Coinbase is free of charge, suggesting that projects reach out for assistance and linking to a blog post from May 2022 clarifying their listing policy. According to this post, there are no fees associated with listing an asset.

However, claims from other project leaders contradict Armstrong, with Cronje alleging that Coinbase sought significant amounts for listings—alongside Sun's assertions of being charged both in TRX and BTC as part of the process.

Luke Youngblood, ex-Coinbase engineer, asserted that listing fees do not exist and suggested Cronje might have encountered fraudulent agents.

Cronje defended his claims by offering to provide evidence of requests for fees from Coinbase employees, distinguishing between 'Earn fees' and actual listing costs.

Coinbase's blog states: "Once an asset is listed on Coinbase, asset issuers have the at-will opportunity to launch campaigns to educate users…"

In summary, both Sun and Cronje reported experiences contradicting Coinbase's claims, calling into question the exchange's transparency regarding its listing policies and associated costs.

Coinbase Custody, a paid service for institutions, was also mentioned in relation to dealings involving significant collateral for listings.

Neither Coinbase nor Binance provided immediate comments on the allegations.