Following the recent listing of the Test Token (TST) on Binance, BNB Chain’s test token, co-founder Changpeng Zhao, also known as CZ, criticized the token listing process on centralized exchanges (CEXs), calling it “broken” and suggesting that exchanges should implement a more automatic listing system, similar to decentralized exchanges (DEXs).
In a post on X, CZ shared his thoughts on TST’s listing on Binance, explaining that exchanges typically list tokens based on popularity and demand, rather than personal involvement in the listing process. He emphasized that exchanges are driven by competition, striving to list in-demand coins as early as possible, with projects showing high trading volume often taking priority.
TST was created as part of a tutorial on the Four.Meme launchpad platform, demonstrating how to create a meme coin on BNB Chain. After its listing on Binance on February 9, the token saw its market cap surge to nearly $489 million, only to drop to around $170 million later, according to CoinMarketCap. Despite the sudden price spike, CZ clarified that TST’s listing was not an endorsement from him or Binance, but rather a demonstration token for the tutorial. He noted that every clarification post about TST only seemed to increase its viral momentum.
CZ’s comments on the token listing process came with criticism of the short time gap between a new listing announcement and its actual listing on CEXs, typically just a few hours. He explained that this brief notice period leads to significant price volatility, as tokens often spike on DEXs after the announcement, with traders quickly selling them once listed on CEXs, resulting in immediate selling pressure.
To address this issue, CZ proposed that CEXs could benefit from a more automatic token listing process, akin to how tokens are listed on DEXs, where listings could happen with minimal intervention. He suggested that exchanges should be able to list tokens automatically, as long as they meet certain conditions.
In addition to his thoughts on CEX listing processes, CZ addressed questions about his stance on meme coins, which have been a major narrative in the crypto space in 2024. When asked whether he was shifting away from focusing on the “fundamentals” in favor of meme coins, he clarified that his priorities remained the same. “I am a builder. I always focus on fundamentals,” he said. While he acknowledged that he personally has not invested in meme coins, he emphasized that not being “into” something doesn’t equate to being against it.
