CZ Criticizes Binance’s Token Listing Process

Changpeng Zhao (CZ), former CEO of Binance, has publicly criticized the exchange’s token listing approach, arguing that its announcement strategy leads to price surges on decentralized exchanges (DEXs) before centralized exchange (CEX) trading begins.

In a February 9 post on X (formerly Twitter), CZ highlighted the recent listing of Test Token (TST) as an example, questioning the four-hour window Binance gives between listing announcements and trading launches.

Price Surges Before CEX Trading

CZ explained that Binance’s listing model creates an unintended market reaction:

“Binance announces, then lists four hours later. The notice period is necessary, but in those four hours, the token prices go high on DEXes, and then people sell on CEX.”

While acknowledging the challenge, CZ admitted:

“Not sure if there is a solution for this though. Just beware.”

CZ Distances Himself From Binance Listings

Addressing his lack of involvement in TST’s listing, CZ clarified that he had no role in the decision-making process:

“I don’t know for sure. I am entirely NOT involved in their listing process.”

He acknowledged that traders often question why certain tokens get listed while others do not, but pointed to competitive pressure among exchanges as the driving factor:

“Exchanges must compete to list popular coins (with trading volume) as early as possible. If your coin is actively sought after by traders, you don’t need to talk to exchanges. Work on your project, not the exchanges.”

CZ on Meme Coins and Investment Principles

Beyond Binance’s listing practices, CZ also responded to speculation about his investment philosophy, emphasizing that he remains committed to fundamentals over hype.

When asked about his stance on meme coins, CZ clarified:

“It depends on your definition of ‘into.’ I haven’t bought a single meme coin so far.”

However, he also made it clear that his lack of investment in meme coins doesn’t mean he opposes them:

“Not ‘into’ something doesn’t mean I am against it. I am not into sports cars; I don’t collect art; I haven’t bought any NFTs; I also haven’t bought most altcoins (I hold BTC and BNB).”

What’s Next for Binance’s Listing Process?

CZ’s comments have sparked discussions about how crypto exchanges should handle token listings to balance transparency and market integrity.

While Binance’s fast-paced approach to listings helps attract liquidity, CZ’s critique suggests that a more structured system might be necessary to prevent excessive price volatility before trading begins.

For now, traders will continue to navigate these dynamics, with Binance remaining at the center of crypto’s evolving market landscape.