Changpeng Zhao critiques Binance’s token listing process as 'a bit broken'

Changpeng “CZ” Zhao, founder and former CEO of Binance, expressed concerns about Binance’s token listing process, describing it as “a bit broken.”

Zhao flagged issues with the rapid timeline from announcement to listing, typically around four hours, which may cause price fluctuations on decentralized exchanges.

“As an observer, I think the Binance listing process is a bit broken,” Zhao wrote on X on Sunday. “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... Not sure if there is a solution for this though. Just beware.”

In terms of new asset listings, Coinbase typically puts together a page of upcoming listings, while Kraken tends to blog about new token listings when they're available for trading.

Zhao’s comment came in response to the surge in popularity of TST, a memecoin shown in a BNB Chain video tutorial as an example of launching memecoins via the Four.Meme platform. The TST memecoin soon gained popularity, especially after Zhao posted about it on X last week to point out that he was not endorsing the coin.

Binance then announced on Sunday that it would soon list the TST/USDT and TST/USDC trading pairs on the exchange, prompting Zhao to comment about memecoins.

TST is currently trading on Binance at around $0.19, up 38% since it began trading on Sunday. Its market cap now stands at $185.9 million, with a fully diluted market cap of $195.5 million.

“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 for whatever reason,” said Zhao.

“Why did TST get listed on Binance? I don’t know for sure. I am entirely NOT involved in their listing process,” Zhao added.