Binance co-founder Changpeng Zhao (CZ) recently criticized Binance’s cryptocurrency listing process, calling it “a bit broken.” His comments followed the listing of a new memecoin, Test (TST), which caused significant price volatility.
CZ’s Concerns
CZ explained on X (formerly Twitter) that Binance’s short notice period between announcement and listing creates problems. The four-hour window between the announcement and listing allows the token’s price to inflate on decentralized exchanges (DEXs) before users sell off their holdings on centralized exchanges (CEXs) like Binance, resulting in price crashes. He acknowledged the difficulty in finding a solution but warned users to be cautious.
Memecoins and CZ’s Stance
CZ clarified that he didn’t endorse the TST listing and prefers to focus on fundamentally sound projects rather than memecoins. However, he emphasized that this doesn’t mean he’s against memecoins entirely. He used his personal preferences (like not owning NFTs or sports cars) as an analogy to explain his position, stating that his focus doesn’t preclude him from supporting the broader crypto industry, including memecoins.
CZ’s Background
It’s worth noting that CZ stepped down as Binance CEO in November 2023 after pleading guilty to violating US anti-money laundering laws. He served time in prison and a halfway house.
