CZ thinks centralized exchanges (CEXs) should list tokens automatically as decentralized exchanges (DEXs) does, but would this be?
In an X post, Changpeng Zhao (CZ), the former CEO of Binance, has shared his thoughts on how centralized exchanges (CEXs) should handle token listings. He believes that CEXs should adopt a more open approach, similar to decentralized exchanges (DEXs), which automatically list almost any token.
“I tend to agree. I think CEX should list (almost) everything automatically, just like DEX. But I am not running a CEX anymore,” CZ said.
Centralized exchanges (CEXs) follow a structured process to list tokens, unlike decentralized exchanges (DEXs), which allow almost any token to be traded automatically. The listing process usually begins with the project team submitting a listing application that includes details about the token, the team behind it, its technology, and its use case. Once submitted, the exchange conducts a thorough review to assess the project’s legitimacy, compliance, security, and market potential.
If a token meets all requirements, the exchange’s technical team integrates it into their trading infrastructure, ensuring compatibility with wallets and security measures. Before listing, many exchanges coordinate marketing campaigns with the project team to build awareness and attract traders.
On the other hand, Decentralized exchanges (DEXs) list tokens in a much more open and automated way compared to centralized exchanges (CEXs). Unlike CEXs, which require a thorough review process, most DEXs allow almost any token to be traded as long as it follows basic technical standards, such as ERC-20 for Ethereum-based tokens or BEP-20 for Binance Smart Chain.
To list a token on a DEX, a project team or any individual simply creates a liquidity pool by depositing a certain amount of the token along with another cryptocurrency, usually a stablecoin or a popular asset like ETH or BNB. Once the liquidity pool is established, users can start trading the token immediately.
CZ’s thoughts came after the unexpected listing of the meme token TST, which was originally created as part of a BNB Chain tutorial. CZ clarified that neither he nor Binance endorsed TST, despite its rise to a $41 million market cap before stabilizing at $10 million. He noted that any attempts to clarify the situation only fueled the token’s viral spread.
TST originated as a test token for a tutorial on creating memecoins on the Four.meme platform. Traders took interest after the tutorial video was released, driving the token’s price up. CZ stated that Binance had no direct involvement in the listing, attributing the decision to market demand. He pointed out that exchanges compete to list high-volume tokens quickly, which led to organic listings without direct discussions.
CZ discovered that the TST community had created a website and social media accounts using Binance’s branding without permission, which he identified as intellectual property infringement. In response, BNB Chain removed the original tutorial video to distance itself from the token.
Binance announced the listing of TST on February 9, 2025, along with 1000CHEEMS, adding it to Earn, Buy Crypto, Convert, Margin & Futures. Following the listing announcement, TST’s price surged by 300% to $0.50 but then plummeted by 60%, settling below $0.20. The daily trading volume during this period exploded to $1.42 billion. CZ emphasized that he was not involved in the listing process.
The accidental leaking of the token name and contract address of TST from a BNB Chain tutorial video led to market misunderstanding and hype. CZ’s tweet clarifying that TST is not an official project but includes the contract address further sparked community interest and caused the price to surge.
He also said that Binance’s process for adding new tokens has a flaw. Binance announces that a token will be listed, and then four hours later, it becomes available for trading. During those four hours, people rush to buy the token on decentralized exchanges (DEXes), causing its price to rise.
Once the token is officially listed on Binance (a centralized exchange or CEX), those who bought earlier sell at a higher price, often making a quick profit.
After completing his sentence months ago, CZ has now taken an active role in the investment arm of the crypto exchange and group company he founded. Binance Labs, now rebranded as YZi Labs, will see CZ actively mentoring and supporting startup founders to help them grow their businesses.
