CZ takes a jab at Binance and other crypto exchanges!

Changpeng Zhao recently criticized the crypto listing system of CEXs. According to him, it is both inefficient and unfair. We will tell you more in the following paragraphs!

A recent example perfectly illustrates this problem: the crypto token TST

The crypto TST was initially designed as a simple testing token for a tutorial video on BNB Chain. However, it experienced a meteoric rise before crashing just as brutally.

On February 9, the market capitalization of this crypto asset indeed reached a peak of $489 million before collapsing by more than 50%. This brought it down to $192 million in a matter of hours. This surge was fueled by crypto investors who discovered the token after a brief mention in a video.

This case highlights the flaws of the CEXs, which fail to control the speculative impact of listing announcements (to the detriment of the stability of the cryptocurrency market).

TST got listed on Binance. A few thoughts:

1. CZ said “fundamentals”, then talks about a test coin turned meme coin.

I posted to clarify that TST was NOT endorsed by me/us. It was just a test token used in a video tutorial. But every clarification post just made it more viral…

— CZ 🔶 BNB (@cz_binance) February 9, 2025

Towards automation of listings on CEXs?

In response to these abuses, Changpeng Zhao proposes a radical solution: automating the listing of cryptocurrencies on CEXs (similar to DEXs). According to the co-founder of Binance, this approach would prevent manipulations by eliminating the gap between announcement and actual listing.

Today, CEXs do filter crypto tokens before listing them. This creates artificial scarcity and market anticipation. This centralized approach contrasts with DEXs, where any crypto asset can be immediately exchanged without prior authorization.

The automation of the listing of crypto assets does, however, pose several challenges:

• Security issue: fraudulent or malicious tokens could be listed instantly.
• Regulation: financial authorities could impose restrictions to prevent money laundering.
• Liquidity management: without filtering, some crypto tokens may lack liquidity, leading to extreme volatility.

One thing is certain: the listing practices of CEXs are increasingly contested. If the crypto community validates CZ’s approach, CEXs could lose their dominance. To be continued…