TLDR
- Former Binance CEO CZ criticized the exchange’s listing process, calling it “broken” due to 4-hour announcement windows
- Test Token (TST) listing controversy emerged after CZ’s tutorial video, despite his non-endorsement
- TST price surged 300% post-listing but dropped 60% shortly after
- CZ maintains distance from current listing decisions, emphasizing he’s no longer involved
- Binance’s current practice allows price manipulation on DEXs before CEX trading begins
Former Binance CEO Changpeng Zhao (CZ) has raised concerns about the cryptocurrency exchange’s token listing process, pointing to the recent Test Token (TST) controversy as evidence of systemic issues. The criticism comes amid growing questions about the platform’s listing criteria and timing.
On February 9, CZ took to X (formerly Twitter) to address the mounting questions surrounding TST’s listing on Binance. He explained that TST was originally created solely for educational purposes in a tutorial video and was never meant to be a traded asset.
The current listing process at Binance involves announcing new tokens four hours before trading begins. This window, according to CZ, creates opportunities for price manipulation. “They announce, then list 4 hours later. The notice period is necessary, but in those 4 hours, the token prices go high on DEXes, and then people sell on CEX,” he explained.
The TST token’s journey exemplifies these concerns. Following its listing announcement, the price skyrocketed by 300%, reaching $0.50. However, this surge was short-lived, as the token’s value plummeted 60% shortly after, settling below $0.20. The daily trading volume exploded to $1.42 billion during this period.
CZ has deliberately distanced himself from the listing decision, stating clearly, “I am entirely NOT involved in their listing process.” This statement comes as part of his effort to maintain transparency about his current relationship with the exchange following his departure.
I tend to agree. I think CEX should list (almost) everything automatically, just like DEX. But I am not running a CEX anymore. 😂
— CZ 🔶 BNB (@cz_binance) February 9, 2025
When questioned about the selection criteria for listings, CZ offered insight into the competitive nature of the exchange business. He explained that exchanges must race to list popular tokens early to maintain their market position. “If your coin is actively sought after by traders, you don’t need to talk to exchanges,” he noted.
The controversy has led some community members to question whether CZ has shifted away from his original focus on fundamental value in crypto projects. Addressing these concerns, he reaffirmed his position: “I am a builder. I always focus on fundamentals.”
In response to questions about his stance on meme coins, CZ clarified his personal investment strategy. “I haven’t bought a single meme coin so far,” he stated, while also explaining that this doesn’t mean he opposes them. He maintains a simple investment portfolio, primarily holding Bitcoin (BTC) and Binance Coin (BNB).
The timing of token listings remains a key issue. Some users have suggested that centralized and decentralized exchange listings should occur simultaneously to prevent price manipulation. CZ expressed agreement with this concept, stating,
“I think CEX should list (almost) everything automatically, just like DEX.”
When community members attempted to get clarification about TST’s listing, CZ acknowledged that his attempts to explain the situation only increased interest in the token. This created a cycle where each clarification led to more speculation and trading activity.
The controversy highlights the complex relationship between centralized exchanges, decentralized platforms, and token listings. The four-hour announcement window, while intended to provide transparency, may be creating unintended consequences in the market.
BNB, Binance’s native token, showed resilience during the controversy, recording a 7% price increase amid the ongoing discussions about the exchange’s listing practices.
The TST token situation has brought attention to broader questions about listing procedures across the cryptocurrency exchange landscape. While the current system aims for transparency, the time gap between announcement and listing appears to create opportunities for market manipulation.
CZ’s comments suggest that finding a solution to this issue may not be straightforward. As he noted,
“Not sure if there is a solution for this though. Just beware.”
