- Binance denied exploiting crypto projects.
- Rival crypto exchanges take advantage of the fallout.
- Arthur Hayes suggested alternative strategies for new projects.
Securing a Tier 1 exchange listing is often seen as a breakthrough moment for crypto projects, with a Binance listing considered the pinnacle. Yet recent allegations from the crypto community claim that Binance charges steep listing fees, a claim co-founder Yi He has denied.
In the wake of this controversy, rival exchanges Coinbase and Gemini have stepped in to spotlight their more equitable listing policies. As the listing fee drama unfolds, contrasting approaches among top centralized exchanges (CEXs) fuel a broader debate on transparency and fair access in the industry.
Coinbase and Gemini Make Fee-Free Pitches
As Binance faces allegations of charging exorbitant listing fees, Coinbase and Gemini are positioning themselves as fairer alternatives.
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Coinbase CEO Brian Armstrong announced that asset listings on his exchange are free, inviting projects to reach out directly. He also mentioned Coinbase’s support for decentralized exchange listings, widening project options.
Echoing this stance, Eric Kuhn, Gemini’s Head of On-Chain, confirmed that the company doesn’t charge projects to list while revealing upcoming transparency measures around its listing process.
Simon Dedic, CEO of Moonrock Capital, ignited the debate last week, claiming that a project had disclosed to him that Binance requested 15% of its token supply, worth up to $100 million, in exchange for a listing. According to Dedic, the project endured over a year of due diligence before Binance finally extended the offer.
Binance Listings Aren’t All They’re Cracked Up to Be
In response to the backlash, He dismissed the allegations against Binance as FUD, asserting there are no fixed fees to secure a listing on the platform. She emphasized that Binance enforces a strict due diligence process, ensuring that projects cannot simply buy their way onto the exchange.
Maelstrom Fund CIO Arthur Hayes added to the debate by questioning whether paying for CEX listings is worth it. Analyzing 103 projects listed on CEXs in 2024, Hayes found that median returns were negative overall. However, he noted that VCs, who typically gain early access to tokens at lower prices, managed to see returns on average following CEX listings.
Hayes further revealed that, according to his contacts, Binance charges as much as 16% of a project’s token supply and requires a $5 million BNB purchase. He added that most new projects don’t meet the quality standards set by CEXs, which are increasingly focused on listing “high quality” projects only.
The Maelstrom CIO argued that the obsession with CEX listings is overhyped and urged emerging projects to consider decentralized exchanges (DEXs) as an alternative. He highlighted that DEXs are easier to list on and offer startups more flexibility and the opportunity to grow organically through word of mouth.
On the Flipside
- Andre Cronje, director at the Fantom Foundation, stated that Coinbase does charge listing fees.
- The DEX to CEX spot trading volume ratio continues climbing, more than doubling to 23% in November from September’s 10%.
- Cardano Native Tokens have been pushing for Binance listings.
Why This Matters
This spat between crypto exchanges signals a broader shift in the industry, where transparency and competitive practices are being forced into the spotlight by an increasingly savvy market.
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