Binance founder Changpeng “CZ” Zhao has once again stirred the crypto world, admitting that Binance’s token listing process has some serious flaws.
In a lengthy post reflecting on the unexpected frenzy around the $TST memecoin, CZ confessed, “The Binance listing process is a bit broken. They announce, then list four hours later. The notice period is necessary, but in those four hours, the token prices skyrocket on DEXes, and then people dump on CEX…”
While making it clear that he’s speaking as an observer and not for Binance, he also admitted, “I’m not sure there’s a fix for this.”
The TST Memecoin That Went Viral
TST started as a simple example token in a Binance BNB Chain tutorial video. But things escalated fast. The moment CZ chimed in to clarify that “TST was NOT endorsed by me/us,” the token surged even more. His words alone turned it into a hot commodity, with its market cap peaking at nearly $500 million before settling around $200 million.
Despite being just a test token, TST climbed into the top 400 tokens, as per CoinGecko. And by February 9, Binance officially listed it.
Should CEXs List Everything Automatically?
When questioned about Binance’s listing process, CZ suggested that centralized exchanges (CEXs) should consider a more open-door approach—listing almost everything automatically, similar to decentralized exchanges (DEXs).
“But, I am not running a CEX anymore,” he reminded everyone.
Yet, his influence remains undeniable. Even though he’s stepped away from Binance due to legal settlements (which included a brief stint behind bars), his 9.5 million X followers still hang on to every word he says, fueling speculation with every post.
CZ: ‘I Don’t Own Memecoins’
With the TST drama spiraling, CZ felt the need to clarify his stance on memecoins in a seven-part X post. He stressed that he’s not into memecoins—nor is he against them. And despite the hype, he has no involvement in Binance’s token listings anymore.
However, he pointed out that most CEXs aim to list hot tokens as quickly as possible to capture trading volume. If traders are actively chasing a coin, exchanges don’t even need to be pitched—it’ll get listed naturally. His advice? “Focus on building your project, not on exchanges.”
The Appeal of Memecoins
So why do traders keep flocking to memecoins instead of utility-driven altcoins? CZ broke it down into three reasons:
- Regulatory Pressure: The SEC has aggressively targeted utility tokens, claiming they’re securities. As a result, traders shifted towards memecoins, which regulators haven’t cracked down on as much.
- Speculation Over Tangibility: Some traders love speculation, and it’s tough to bet big on assets with clear, stable value—like real-world tokenized assets. A token tied to a building with steady value? Not much trading action there.
- Memes Are Just Fun: Memecoins have die-hard communities. And if there’s one rule in crypto, it’s this—don’t go against the meme-loving crowd.
Wrapping up, CZ emphasized that there’s no shortage of money waiting to pour into crypto. The real challenge? Building projects that people actually want.