The CEO of Binance cryptocurrency exchange, Changpeng Zhao has responded to a claim making rounds that the exchange charges a certain amount of money to list cryptocurrencies. In a formal response, Zhao declared that the company does not charge 400 bitcoin ($2.6 million, at current rate) to list coins or tokens.
In his response, Zhao explained that the company does not base its listings on listing fees, rather by the project behind the coin. He tweeted:
“We don’t list shitcoins even if they pay 400 or 4,000 BTC. ETH/NEO/XRP/EOS/XMR/LTC/more listed with no fee. Question is not ‘how much does Binance charge to list?’ but ‘is my coin good enough?’ It’s not the fee, it’s your project! Focus on your own project!”
A cryptocurrency researcher, Christopher Franko had earlier accused Binance of charging a listing fee of 400 BTC to add their coins on the exchange. He claimed he received an email from Binance stating that it costs 400 BTC to list his blockchain project, Expanse.
However, in a subsequent tweet, Zhao quashed the claim saying that the email Franko showed (firstname.lastname@example.org) is a spoofed/scam email. Binance never quote fees in email, and not in BTC. Project owners should be able to spot email spoofing, those who can’t should not issue a coin. The communication process/method tells a lot about a coin,” he continued.
As the interest in listing fees heightened, Zhao took the opportunity to updated his listing tips which he originally published on twitter last year. The newer version gives more in-depth insight into listing fees, explaining that factors like size, size, market cap, stage, and culture of the project played important roles than listing fees.
Last month, Ethereum’s co-founder Vitalik Buterin rebuked crypto exchanges for charging exorbitant listing fees from cryptocurrency projects. In an interview with TechCrunch he said that there was no need for projects to pay exchanges $10 – $15 million to list coins. “I definitely hope centralized exchanges go burn in hell as much as possible,” he said.
It is not bad practice for exchanges to charge listing fees just like stock markets to integrate the wallets and for maintenance. Zhao explained in his listing tips that very good projects can benefit small exchanges while listing a bad project is very risky for big exchanges since they cash out and negatively affect the exchange’s customers.