The rise and fall of Test, TST, the social media darling which temporarily saw a market capitalization of $489 million before falling flat on its face has recently placed Binance at the center of much debate about its token listing process. Binance co-founder Yi He clarified the exchange’s token listing criteria.
Binance’s Token Listing Criteria
Yi He outlined three primary factors Binance uses in its evaluation of tokens:. The first is Return on Investment (ROI), where Binance compares a token’s first-day price with its performance across other exchanges over a quarter. Innovation and User Growth would represent the next aspect: it encompasses the creation of novel concepts or attracting new users to the blockchain. Market Performance and Hype represent the last: Binance will list tokens that have caused huge buzzes so that they don’t get behind the market. This means these criteria enable Binance to filter out several tokens from VC-backed projects to meme coins.
The TST Token Controversy
Binance co-founder clarifies token listing process amid TST controversy. Most retail cryptocurrency investors allocate capital through centralized exchanges like Binance and Coinbase. The most important criterion for a token listing is its return on investment (ROI). pic.twitter.com/5CoE34pIC9
— Bingus (@basebingus) February 27, 2025
The TST token, initially created as part of a BNB Chain tutorial, saw a market cap surge to $489 million on February 9 after being promoted on social media. However, its value dropped by over 50% shortly after, stabilizing at $192 million. This led to the raising of questions on the listing process by Binance, especially for hype-driven tokens. Yi He noted that social media plays a significant role in influencing token prices, but Binance seeks to find a balance between market trends and token value.
Internal Compliance Measures
Binance has its internal compliance strictly followed. Yi He disclosed that more than 120 cases of misconduct were investigated, where 60 employees got dismissed. Such violations comprised mainly of bribery and company funds redirection, not insider trading. Binance ensures such employees have trading restrictions to maintain fair practices.
Future of Binance’s Token Listings
Changpeng Zhao, Binance’s former CEO, admitted that the listing process could be improved. He suggested that exchanges should consider automatic listings, like those on decentralized exchanges (DEXs), to prevent volatility caused by arbitrage opportunities. This would help stabilize token prices and reduce market manipulation.
The TST token controversy has unveiled challenges Binance faces in balancing hype for tokens with real value. Yi He’s clarification of the listing criteria for the exchange emphasized ROI, innovation, and market performance. Binance is fine-tuning its processes to make it fairer and more stable. Investors should understand the criteria and be careful of token movements that are driven by social media.
