Binance Founder Responds To $100M Listing Fee Controversy

Over the weekend, Binance and Coinbase had been accused of asking for millionaire charges for token itemizing, igniting a dialogue about itemizing necessities, trade rivalry, and FUD (worry, uncertainty, and doubt). A number of business figures weighed in on the matter, together with Justin Solar, Brian Armstrong, and Changpeng Zhao, who denied the claims on Monday.

Binance Vs. Coinbase Itemizing Charge Controversy

Two of the world’s largest centralized exchanges (CEXs), Binance and Coinbase, confronted backlash over allegations of millionaire charge necessities for token itemizing. On Thursday, Moonrock Capital’s CEO, Simon Dedic, shared his issues relating to some CEXs’ itemizing necessities.

In an X put up, Dedic defined that he just lately spoke to a Tier 1 challenge that raised practically 9 figures. The challenge’s group detailed that they acquired a list supply from Binance after “losing over a 12 months of due diligence” with the trade.

Nonetheless, the crypto trade allegedly requested 15% of the token’s provide to safe the itemizing. Dedic expressed his concern about “paying $50-100M only for a CEX itemizing,” as it will be unaffordable for many initiatives, and the donated token provide is “the most important cause for bleeding charts.”

Moonrock Capital’s CEO raises issues about itemizing necessities. Supply: Simon on X

Many group members mentioned whether or not the itemizing charge requirement wanted to vary. One consumer argued that if a challenge wished to be distributed in a CEX, they need to “need to pay for it.”

Nevertheless, controversy arose when Coinbase’s co-founder and CEO Brian Armstrong replied to Dedic’s X put up. Armstrong seemingly took a jab at Binance by stating that asset listings on Coinbase had been free.

Sonic Labs’ founder, Andre Cronje, refuted Armstrong’s declare and revealed that the trade allegedly requested the corporate for a list charge a number of instances. Per the put up, Coinbase requested as much as $300 million from Sonic Labs, whereas Binance charged the challenge $0.

Backing Cronje, Tron’s founder Justin Solar shared an identical story. Solar declared that Coinbase’s claims had been “merely not true,” because the CEX had required them to pay 500 million TRX, value round $80 million, and “demanded a $250 million BTC deposit in Coinbase Custody to spice up their efficiency.”

Solar’s remarks fueled the continued dialogue, with many customers questioning his declare. Others advised that his expertise with Binance would possibly differ from different initiatives because the itemizing occurred years in the past.

Binance Co-Founders Deny The Allegations

On Monday, Changpeng Zhao, also called CZ, thanked Solar for his help. The previous CEO famous the significance of the validation from somebody who runs two competing exchanges. Nevertheless, he expressed his concern concerning the “quote assaults” inside the business.

Zhao responds to itemizing charge allegations. Supply: CZ on X

Zhao urged his friends to scale back these assaults and requested groups to work on their initiatives to safe a list as an alternative of specializing in the exchanges. Furthermore, he highlighted that “Bitcoin by no means paid any itemizing charges.” Solar agreed with CZ, stating, “Specializing in constructing initiatives and Bitcoin is what actually issues.”

Yi He, co-founder and Chief Buyer Service Officer at Binance, additionally denied the allegations, calling them FUD:

FUD won’t ever go away, but it surely makes us stronger. Gossip is straightforward to get site visitors, and enterprise competitors is at all times filled with darkish sides; If you perceive the foundations of how the world works, you’ll not be simply swayed by rumors, and you should have the power to assume independently.

She defined {that a} challenge gained’t get listed if it doesn’t move the screening course of, and the trade doesn’t cost a “so-called 20%” charge. Yi He additionally remarked that the trade’s itemizing guidelines are “clear and clear,” together with the airdrop guidelines for Binance’s Launchpool. In the end, she urged the group to do their analysis when controversy sparks.