Binance Clarifies Its Listing Process
Binance, the world’s largest cryptocurrency exchange, recently declared that it does not profit from its cryptocurrency listing process. This announcement came as a response to Limitless Labs CEO CJ Hetherington’s claim that Binance demands around 8% of token supply from cryptocurrency issuers during listing applications. Rejecting these accusations, Binance expressed its intent to pursue legal avenues if necessary, emphasizing concerns over unauthorized disclosure of confidential communications.
Binance stated it does not charge a listing fee for any cryptocurrency, and any cash or coin security deposits are typically refundable within one to two years. The exchange also highlighted that its executive team is not involved in token dumping. Furthermore, Binance criticized any unauthorized sharing of confidential industry communication, deeming it harmful to industry norms and reputation.
In its formal response, Binance opposed the profit-seeking claims that were central to the debate, noting its commitment to exploring legal measures. The platform emphasized that its policies are curated with user benefits in mind, underscored by transparency claims supported by a long-term refund model and an administrative no-sale stance.
Allegations Targeting Binance
Hetherington alleged that Binance required about an 8% coin allocation along with additional cash and coin securities from Limitless. The revelation that Limitless is backed by Coinbase Ventures and Base Ecosystem Fund added an investor dimension to the debate. Neither Binance nor Hetherington responded to media inquiries on the matter.
Within the industry, it is widely believed that listing on the largest global exchange incurs indirect costs, sometimes reaching up to 7% of the supply. A user named “韭菜不红Leek” on Binance Square claimed an 8% distribution demand from projects was for user airdrops and events. Mike Dudas, founder of 6MV, further fueled the debate by confirming that he had observed similar offers in recent weeks.
The exchange’s firm denial of charging for listings aims to dispel myths and reinforce its transparency. By stating unequivocally that the company secures its operations with user interests in mind, Binance attempts to establish trust in its practices amidst industry scrutiny.
As the conversation continues to unfold, the focus remains on whether these assertions will hold, considering the broader implications for exchanges and cryptocurrency practices globally. The stance taken by Binance may set a precedent for how exchanges articulate and defend their policies against public allegations.