Binance's founder, Changpeng Zhao, has voiced dissatisfaction with the exchange’s listing process, highlighting its flaws. He noted that the short listing notice negatively affects retail investors.
CZ's Critique of the Listing Process
On February 9, on the platform X, Changpeng Zhao stated that the announcement structure for listings on Binance creates an uneven playing field. CZ noted that the four-hour notice period leads to rapid price increases on DEX, allowing early buyers to profit at the expense of retail traders on CEX. He urged caution, indicating that a complete solution might not be feasible.
Impact of Short Notice on Token Prices
The four-hour window before a listing on Binance allows traders to capitalize on price inefficiencies. Once Binance announces a new listing, prices on DEXs surge, and early buyers sell on CEXs at inflated prices, disadvantaging latecomers. This pattern was observed with Test Token, which gained significant attention before its listing despite lacking official endorsement.
Memecoins and the Changing Exchange Landscape
The Test Token situation raised questions about Binance's criteria for token selection. Changpeng Zhao explained that exchanges strive to offer popular assets, leading to a focus on liquidity over project fundamentals. This opens the door to speculative assets, including memecoins, on major platforms. Zhao advised crypto projects to focus on development rather than lobbying for exchange listings.
For now, Binance remains at the center of the debate over token listings. As the exchange continues to adapt to the changing market, traders must remain cautious and conduct their own research before investing.
