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Friday, November 22, 2024

Binance Co-Founder Clarifies Asset Listing Policies, Dispels FUD

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Binance co-founder Yi He has spoken to recent speculation about listing fees on the platform, assuring the community that it operates with transparent policies.

The address came in response to allegations by Moonrock Capital CEO Simon Dedic of costly listing fees on Binance.

Binance Accused of Charging Exorbitant Fees for Crypto Listing

On October 31, Dedic took to X with a claim that Binance demanded 15% of a project’s token supply for a listing. He used the example of an unnamed tier 1 project that raised nearly a billion, with the crypto exchange giving them a listing offer that included parting with between $50 million and $100 million for the service.

Additionally, Dedic asserted that the listing offer came at the tail end of a more than year-long due diligence process. This claim sparked debate, with some observers like Mat Milbury arguing that such demands may harm projects rather than benefit them.

However, Binance supporters countered these criticisms, with co-founder Yi clarifying that the exchange’s asset listing processes prioritize rigorous screening over the funds associated with a project, regardless of amount:

“If a project does not pass the screening process, it cannot be listed on Binance regardless of the amount of money or tokens involved.”

Dismissing the outcry as fear-mongering, or what is commonly known in crypto circles as FUD, short for fear, uncertainty, and doubt, Yi asked community members to do their own research and analyze Binance’s listings for themselves to see if there was indeed a 20% requirement for tokens as alleged by Dedic.

She also pointed out that her company’s listing fees and token distribution policies are clearly documented, with the aim of protecting both projects and the platform’s users.

Another exchange backer reiterated this point, suggesting that listing fees on Binance are meant to prevent “worthless” tokens from reaching unsuspecting investors. This implies that the crypto platform’s exhaustive listing criteria are key to maintaining a trustworthy environment.

What About Coinbase?

Coinbase CEO Brian Armstrong contributed to the debate by promoting the Coinbase Asset Hub, stating that projects can be listed on the platform at no cost.

This elicited a response from Sonic Labs co-founder Andre Cronje, who disputed Armstrong’s claim. The serial founder stated that unlike Binance, which did not charge his projects anything to be listed, Coinbase had allegedly asked them for huge sums, including $300 million, $50 million, $30 million, and most recently, $60 million.

Tron’s Justin Sun also added his voice to the discourse, reinforcing Cronje’s statement. The newly minted Prime Minister of the self-proclaimed micronation of Liberland shared a similar experience with Coinbase, alleging that it demanded Bitcoin (BTC) and TRX deposits amounting to $250 million and $80 million, respectively, to boost their performance metrics. In contrast, Sun claimed that Binance charged them nothing for the same service.

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