Changpeng Zhao, co-founder of Binance, recently addressed the recent disruptions in the asset listing process on social media. He provided insights on the issues surrounding this process by using a test token called TST, which was developed by the BNBChain team for educational purposes. The token gained attention through the Four_meme launchpad, which focuses on creating memecoins.
CZ’s Listing Insights
Zhao pointed out that the transition from announcement to listing in Binance’s asset listing procedure is extremely short. Within this brief period, there were price increases in decentralized markets, followed by sales on centralized platforms. He emphasized that sudden changes during transactions can lead to market fluctuations.
“The Binance listing process has some issues. An announcement is made, and within four hours, the listing happens. During this time, token prices rise on decentralized exchanges, followed by sales on centralized exchanges. Since I don’t have a concrete solution, I advise caution.” – Changpeng Zhao
Market and Token Impacts
After the listing of the TST token, sudden price fluctuations were observed in the markets. Zhao suggested that the rapid process and its impact on the token’s price spikes could pose risks for traders. There were suggestions to extend the announcement period before listing to address this issue.
Zhao clarified that he does not support the listing of TST, but this does not imply a negative attitude towards the token. He mentioned that he does not include assets like sports cars, art collections, or NFTs in his investment preferences, although he does not oppose these assets.
As the former CEO of Binance, Zhao faced penalties for violating U.S. anti-money laundering laws after stepping down in November 2023. This incident has sparked discussions within the industry about Binance’s listing procedures.
In light of the ongoing discussions about Binance’s listing process, investors are advised to remain vigilant against sudden market fluctuations.
