Changpeng Zhao (CZ), the former CEO of Binance, publicly branded the exchange’s listing process as “broken.” This statement brought attention to the issue of short-notice listings and their impact on token price surges.
Criticism of the Listing Process
In a post on social media platform X (formerly Twitter) on February 9, CZ highlighted how Binance's announcement structure creates an uneven playing field.
"The notice period is necessary, but in those four hours, token prices go high on DEXs, and then people sell on CEX," CZ wrote.
Impact of Short Notice on Token Prices
The four-hour notice period provides an opportunity for traders to exploit price inefficiencies:
* Price Surge on DEXs – Once Binance announces a new listing, traders rush to buy the token on DEXs, driving prices up. * Dumping on CEXs – When trading begins on Binance, early buyers sell their holdings at inflated prices, leaving latecomers at a disadvantage.
Competition and Changing Priorities
CZ also addressed the broader question of how exchanges compete to list popular assets, driven by user demand and trading volume.
"You might not like to hear this, but the truth is: exchanges must compete to list popular coins (with trading volume) as early as possible," CZ explained.
Amidst a rapidly changing exchange landscape, with attention on memes and speculative assets, Binance remains at the center of debates. Traders are advised to remain cautious and conduct their own research before investing.
