CZ Advocates for Automatic Token Listings on CEXs After TST Listing Controversy

Changpeng Zhao (CZ), co-founder of Binance, has sparked a debate about the token listing process on centralized exchanges (CEXs) following the Test Token (TST) listing on Binance. The TST, created as part of a tutorial on BNB Chain’s Four.Meme launchpad, became a hot topic when its market cap surged to nearly $489 million, before quickly dropping to around $170 million.

CZ clarified that TST was not a Binance endorsement, explaining it was merely a demonstration token used for educational purposes. However, the listing caused a stir, with the token going viral due to the attention it garnered, especially following CZ’s posts about it.

In his comments, CZ criticized the token listing process on centralized exchanges, calling it “broken.” He pointed out that exchanges often list coins based on popularity and demand, sometimes without thorough review or personal involvement in the listing process. This rush to list popular tokens can lead to massive price fluctuations when a token is announced for listing, followed by a sell-off when it hits the exchange.

CZ also proposed a more automated listing process, similar to decentralized exchanges (DEXs), where tokens are listed almost immediately without the need for manual intervention. He argued that this approach could help minimize the price volatility caused by sudden announcements and the short gap between announcement and listing, allowing for a smoother trading experience.

On the topic of meme coins, which have become a dominant theme in 2024’s crypto market, CZ addressed concerns about his stance. While he affirmed that his focus remains on fundamentals and that he personally does not invest in meme coins, he made it clear that not being interested in them does not equate to being against them. He stressed that as a builder in the crypto space, his priorities are centered around long-term developments and innovation.

In summary, CZ’s remarks highlight his belief that CEXs could improve their token listing processes and that he remains committed to the fundamental principles of building in the crypto space, despite the growing prominence of meme coins.