Changpeng Zhao, co-founder and former CEO of Binance, has called for improvements in the token listing process on centralized exchanges, describing the current process as 'broken.'
Short Listing Notice Periods
Zhao pointed out the problematic short window between token announcements and their actual listings on major exchanges. He noted that the rapid four-hour timeframe on Binance creates price distortions. 'The notice period is necessary, but in those 4 hours, token prices go high on DEXes, and then people sell on CEX,' Zhao wrote.
Automated Listings and Fair Launch Era
Zhao suggested that centralized exchanges could adopt automated listing processes similar to DEXs. He acknowledged that he no longer runs Binance or participates in its listing decisions.
Recent Examples and Their Impact
The listing of the Test (TST) token on Binance exemplified these dynamics. Although TST was originally created as a demonstration for the BNB Chain and was not intended for public trading, its market cap surged to $489 million driven by influencer hype.
Concerns over token listing procedures on centralized exchanges continue to spark discussions due to their market and investor implications.
