CZ Criticizes Binance’s Listing Process

Changpeng Zhao (CZ), the founder and former head of the cryptocurrency exchange Binance, has criticized the platform’s approach to asset listings and explained his stance on meme coins.

Last lastly, as an observer, I think the Binance listing process is a bit broken. They announce, then list 4 hours later. The notice period is necessary, but in those 4 hours, the token prices go high on DEXes, and then people sell on CEX…

Not sure if there is a solution for…

— CZ ? BNB (@cz_binance) February 9, 2025

“As an observer, I think the Binance listing process is a bit broken. They announce, then [add the token] four hours later. The notice period is necessary, but during this time, asset prices rise on DEX, and after listing, people sell it on CEX,” the entrepreneur wrote.

Zhao commented following the announcement of the listing on Binance of the “involuntary meme coin” TST—a test asset he released on the Four.Meme platform while filming a tutorial video for BNB Chain. Due to its association with a well-known figure, the token quickly gained popularity in the community.

The entrepreneur has repeatedly stated that TST is merely a demonstration tool, yet each clarification “only increased its virality.”

At its peak, the asset’s price reached $0.47. At the time of writing, TST is trading at $0.18 with a market capitalization of $175.7 million.

CZ is “unsure” why the asset ended up on the Binance exchange and emphasized his lack of involvement in the procedure. In his view, in a competitive environment, exchanges tend to rush to list assets:

“You won’t like it, but the truth is, exchanges must compete to list popular coins (with high trading volume) as early as possible. If your coin is in demand by traders, you don’t need to communicate with exchanges. As I always say, work on your project, not on exchanges.”

The entrepreneur noted that overall he is neither “for” nor “against” meme coins but is interested in their development.

“I think most of you will agree that I have worked hard and ‘put in some effort’ to help many altcoins and the crypto industry as a whole. I hold the same view towards meme coins,” Zhao stated.

In his opinion, the community’s interest in this segment arose amid strict restrictions from “one influential regulator,” who labeled utility tokens as securities and litigated against developers. Another factor driving interest in the niche is the opportunity for speculation.

Earlier, Binance Research specialists pointed to the hype in the meme coin segment, explaining the phenomenon by a “fair” launch process without hidden distributions among insiders and token unlocks. The availability of assets, facilitated by platforms like Pump.fun and Telegram bots, also helped.

“[Memes] are a cultural phenomenon. I am not an expert in this area. There are many staunch defenders of memes. Do not go against the community,” added the former head of Binance.

Back in February, AI tokens AI16Z and VVV plummeted after being listed on Binance’s futures platform.