Changpeng Zhao, former CEO of Binance, critiqued the exchange’s token listing process, emphasizing its market impact.
Criticism of Current Listing Process
In a recent comment, Changpeng Zhao described Binance's token listing procedure as "a bit broken." He noted the pattern where announcements followed by quick listings lead to price surges on decentralized exchanges before stabilizing. Zhao suggested adopting a more automated listing model, similar to those used on decentralized exchanges (DEXs).
Market and Community Reactions
Market and community reactions vary, with some industry players endorsing Zhao's automation suggestion to counter price manipulation. Others argue for improved notice periods, indicating concerns about volatility within short intervals.
Historical Context and Price Data
The Test Token's unintended association with Binance underscores how speculative trading dynamics can rapidly sway crypto markets, emphasizing the need for clearer industry protocols. CoinMarketCap data shows Test Token (TST) priced at $0.06 with a market cap of $55.64 million. The token experienced a 24-hour trading volume of $71.50 million, a decrease of 9.17% in the last day, and a significant volatility history including a 32.09% dip over the last month.
The Coincu research team suggests continued volatility without regulatory or internal process adjustments at exchanges like Binance. A shift towards greater transparency and automation could enhance market stability. Additionally, the potential technological integration of DEX model benefits needs thorough exploration.
