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10/02/25
51
Changpeng Zhao Calls for Reform in Centralized Exchange Token Listings
Changpeng Zhao, the co-founder and former CEO of Binance, has expressed concerns about the current token listing procedures of centralized exchanges (CEXs), stating that the process needs significant improvement. Zhao highlighted the inherent flaws in the system, particularly the brief period between a token’s announcement and its subsequent listing, which often leads to price volatility.
Tokens that are listed on major CEXs such as Binance, Coinbase, and Kraken attract considerable investor interest due to the influx of liquidity these exchanges provide. However, Zhao pointed out that the existing model fails to accommodate traders adequately, as the short window — from announcement to listing — can result in inflated prices on decentralized exchanges (DEXs). This situation often causes traders on DEXs to sell their tokens immediately on CEXs, which generates undue selling pressure.
Zhao’s comments came shortly after Binance’s listing of the Test (TST) token, a project initially designed as a tutorial on the BNB Chain that unexpectedly gained popularity as a meme token. The market cap of TST surged to $489 million before plummeting by more than 50% shortly thereafter. This event underscored the volatility often associated with recent token listings on CEXs.
In light of these issues, Zhao proposed a shift towards more automated listing procedures on centralized exchanges, similar to those that exist for decentralized protocols. He indicated that such a move could alleviate some of the challenges faced by investors and improve market dynamics.
The discourse around the efficacy of CEX listing practices has intensified, especially as many tokens listed on these exchanges have shown poor performance shortly after becoming available. This has fueled interest in alternative launch models, particularly those that emphasize fairness and community involvement. Emerging projects like the Hyperliquid (HYPE) token have indicated a potential shift towards a new paradigm for crypto launches, prioritizing decentralized methodologies over traditional CEX listings.
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