Changpeng “CZ” Zhao, Binance co-founder and former CEO, disparaged centralized exchanges’ token listing practices. He thinks the process is inefficient, below standard and needs to be improved.
The thing is when a crypto gets listed on a major CEX, be it Binance, Coinbase or Kraken, its price tends to spike as these exchanges attract more buyers. However, Zhao says the short time between announcing and listing a token is causing problems.
For example, Binance recently listed a token called Test, which was originally created just for testing. But once the name leaked in a video, traders quickly started buying it, thinking it was an official project. The token’s value shot up to $489 million before crashing by over 50% later.
Source: Changpeng Zhao
Can CEXs Work Like DEXs?
Zhao thinks one way to fix this issue is for CEXs to list tokens automatically, just like decentralized exchanges (DEXs). On DEXs, traders can buy and sell tokens without waiting for approval.
“I think CEX should list (almost) all automatically, like DEX,” Zhao said. “But I no longer run Binance,” he added, “and I’m just a guy sharing my opinion.”
The Future of Token Listings
Many commentators believe CEX listing issues are putting vendors and venues in a tailspin. More than 80% of the tokens that had been listed on Binance subsequently ended up losing value by a report published in May 2024.
Others believe token launches will change in the future. This past week, the Hyperliquid (HYPE) token launch revealed a different way to do things. Rather than being listed on a CEX, HYPE started directly on its blockchain. This enabled the crypto community to determine its value on an equal footing.
As the crypto world evolves, the way tokens are listed might change. Whether CEXs adopt DEX-style automation or new launch models emerge, it is clear that investors need to be careful and do their research before buying new tokens.
