Changpeng Zhao, the former CEO of Binance, has criticized the exchange's listing structure, highlighting that the short four-hour notice can lead to market manipulation.
Criticism of Binance's Listing Process
In a post on platform X, Changpeng Zhao pointed out that the four-hour listing announcement leads to price surges on decentralized exchanges, enabling early buyers to resell tokens on centralized exchanges at inflated prices.
Impact of Short Notice on Token Prices
The short notice period gives traders an opportunity to capitalize on market inefficiencies. After Binance's listing announcement, traders rush to buy tokens on decentralized exchanges, driving prices up. When trading begins on Binance, early buyers sell their holdings at inflated prices, leaving latecomers at a disadvantage.
The Changing Exchange Landscape and Memecoins
Previously, securing a Binance listing required months of due diligence. With the growing demand for high-volatility assets, exchanges have been listing new tokens, including meme coins, at a much faster pace. This change is driven by an increase in speculation, the ease of token creation, and exchanges competing for trading volume.
Amidst the rising prevalence of memecoins and questions around Binance's listing process, traders should exercise caution and conduct their own research before investing.
