Binance's CZ Defends CEX Token Listing Amid Transparency Concerns
The controversy surrounding centralized exchanges (CEXs) constantly listing a slew of tokens has become a hot topic in the crypto community. Investors and market analysts have expressed concerns about the transparency and quality of the projects listed.
Concerns Over the Quality of Tokens Listed on CEXs
Some analysts have argued that the constant addition of new tokens by CEXs could negatively impact investor confidence. Crypto analyst Benjamin Cowen has criticized exchanges for having unclear listing standards and focusing more on profits than project quality.
"Crypto exchanges are listing more and more coins that have no real value. One day they encourage long-term investment, and the next they add coins that almost no one has heard of," Cowen commented.
Colin Talks Crypto, another analyst, agrees. He believes that the main motivation behind token listings is not the quality of the project but the profit from trading fees. Many investors on social media have also criticized CEXs for chasing trends, listing new tokens to attract trading volume but being ready to delist them when interest wanes.
"They only care about trading volume and fees. They list when the coin is hot and delist when it is no longer attracting attention. This is why DEXs will be the future of the market," commented a user on X.
A typical example is Binance, the world's largest cryptocurrency exchange, which recently listed a series of meme coins on BNB Chain, including JELLY. This has caused a wave of controversy, with some analysts expressing disappointment in the exchange's listing decisions.
“They keep listing low-cap coins, while ignoring projects with real potential and strong communities. This raises questions about Binance’s listing criteria,” said analyst Leonidas.
In addition, some speculate that exchanges may be buying tokens before listing to benefit from price increases when the tokens officially trade.
CZ defends Binance’s listing policy
Despite criticism, some experts believe that expanding token listings could help the market grow healthier in the long run. According to Jason Chen, if exchanges list tokens en masse, the hype around new listings will gradually subside, thereby creating a fairer trading environment.
“When all tokens are listed quickly, there will be no more ‘listing = price increase’ effect, and the market will gradually return to stability,” Chen said.
Binance founder CZ agrees, saying that token listings should not significantly impact the long-term value of a project.
"Listings only provide liquidity, making it easier for users to buy and sell. In the short term, the price may fluctuate, but in the long term, the value of a token will depend on the development of the project, not whether it is listed or not," CZ explained.
He also emphasized that Binance has strict criteria for considering token listings and delistings, including the commitment of the development team, the quality of the technology, and the level of community activity.
"The DEX model also has its own advantages, where all tokens can be listed freely and users can decide for themselves. But with CEX, we always try to provide a transparent listing system and real value to the market," CZ added.
The CEX vs. DEX Divide
The JELLY token incident on the Hyperliquid trading platform has fueled the debate between CEX and DEX. Some argue that decentralized exchanges (DEXs) have an advantage because they are not controlled by a centralized organization and allow the market to self-regulate the value of tokens.
In this context, Binance has also recently implemented a secondary listing mechanism through Binance Wallet. Instead of exclusively listing new tokens on a centralized exchange, the platform is leveraging decentralized technology to help tokens reach users in a more equitable way.
While the debate over CEX token listings continues, one thing is clear: as the cryptocurrency industry grows, transparency and fairness in the listing process will be important to maintain investor confidence and promote sustainable market development.