Binance Founder CZ Criticizes Exchange's Token Listing Process, Citing DEX Price Swings

Changpeng "CZ" Zhao, the founder and former CEO of Binance, has publicly criticized the cryptocurrency exchange's token listing process, calling it "a bit broken." Zhao's concerns center on the short timeframe between listing announcements and the actual start of trading, a practice he believes contributes to price volatility on decentralized exchanges (DEXs).

The Four-Hour Window: Fueling DEX Volatility?

In a post on X (formerly Twitter) on Sunday, Zhao highlighted the issue, noting that Binance typically lists new tokens just four hours after announcing them. He argued that while a notice period is necessary, this short window allows for significant price increases on DEXs, followed by potential sell-offs on centralized exchanges (CEXs) like Binance once trading begins. "Not sure if there is a solution for this though. Just beware," he cautioned.

The TST Memecoin: A Case Study in Rapid Listing

Zhao's comments came in response to the recent surge in popularity of TST, a memecoin featured in a BNB Chain video tutorial. Zhao had previously posted about TST to clarify that he was not endorsing the token, but his clarification inadvertently increased its visibility. Binance subsequently announced it would list TST/USDT and TST/USDC trading pairs, prompting Zhao's critique of the listing process.

TST is currently trading on Binance at around $0.19, up 38% since its listing on Sunday, with a market capitalization of $185.9 million.

CZ Distances Himself: "I Am Entirely NOT Involved"

"Why did TST get listed on Binance? I don't know for sure. I am entirely NOT involved in their listing process," Zhao stated, emphasizing his distance from Binance's current operations.

A Different Approach: How Other Exchanges Handle Listings

In contrast to Binance's approach, other major exchanges like Coinbase and Kraken typically handle new asset listings differently. Coinbase often publishes a page detailing upcoming listings, while Kraken tends to announce new tokens via blog posts once they are available for trading.