In a recent exchange on X, Binance co-founder Yi He countered allegations that the crypto giant demanded tokens as part of its listing process. The discussion ignited fresh debate over centralised exchange policies, highlighting long standing concerns about listing fees and transparency.
Controversy Begins with Moonrock Capital’s CEO
The issue arose after Simon Dedic, CEO of Moonrock Capital, a crypto advisory and investment firm, posted on X that Binance allegedly required 15% of an unnamed project’s token supply to secure a listing on its platform. While Dedic did not specify which project was involved, his claims raised significant concern among industry participants about how centralised exchanges handle listings.
Binance Clarifies: No Token Percentage Requirement
Yi He quickly responded, asserting that Binance does not demand a portion of project tokens as a listing fee. She emphasised that while Binance screens projects for suitability, the platform does not charge a fixed amount or a percentage of tokens. Since 2018, Binance’s listing policy has stipulated that listing fees should be transparent and that any collected fees are donated to charity.
Per Binance’s official policy:
“Project teams will still propose the number they would like to provide for a ‘listing fee,’ or now more appropriately called a ‘donation.’ Binance will not dictate a number, nor is there a minimum required listing fee.”
This policy, aimed at fostering transparency, seemingly counters accusations that Binance enforces high entry barriers for listing new projects.
Centralised Exchange Fees Under Fire
The debate on X quickly expanded to other platforms, drawing input from prominent industry voices, including Andre Cronje, co-founder of Sonic. Cronje echoed concerns by mentioning Coinbase, suggesting that high listing fees are an industry-wide practice among centralised exchanges. This pushback against centralised platforms stems partly from the perception that these high fees contradict the decentralised ethos of blockchain technology.
The debate around listing fees comes at a time when centralised exchanges are seeing reduced trading volumes. According to recent data from CCData, spot trading volume on Binance dropped by 23% in September 2024, with other major platforms like OKX, HTX, Coinbase, Kraken, and Bybit experiencing declines of 20-30%. Analysts attribute this downturn to a mix of factors, including geopolitical tensions, uncertainty surrounding the upcoming U.S. elections, and an increase in trading activity on decentralised exchanges (DEXs).
Community Criticism of Centralised Listing Practices
Many in the crypto community have voiced frustration over the influence centralised exchanges wield over project listings. In response to the Binance listing policies, user Zeng Jiajun challenged the status quo with a rhetorical question: “Imagine Vitalik Buterin paying 5.5% to OKX to list Ether on the exchange.” The comment underscored a broader sentiment among crypto advocates, who argue that requiring high listing fees or token percentages can undermine the decentralised principles the industry was built upon.
