Changpeng Zhao, better known as CZ, the former head honcho at Binance, recently highlighted some big issues with the way tokens are listed on centralized exchanges like Binance. In a post on X from February 9, he pointed out that the current process, which often spans just four hours from announcement to listing, tends to cause unnecessary market drama. This rush can lead to huge price spikes on decentralized exchanges (DEXs), followed by a sharp fall once the token hits larger, centralized platforms (CEXs).
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Could CEXs Learn from DEXs?
The listing of the Test (TST) token on Binance serves as a prime example. Initially just part of a tutorial, the token unexpectedly surged to a massive market cap and then plummeted all in a day. CZ believes that CEXs might do better to adopt some of the automated listing features of DEXs to avoid these issues. He suggested, “I think CEX should list (almost) everything automatically, just like DEX,” clarifying that he’s no longer involved in the day-to-day operations.
Industry Moves Towards Fairer Token Launches
The conversation around how tokens are introduced to the market is growing, especially as studies show many tokens lose value quickly after being listed. The decentralized launch of the Hyperliquid (HYPE) token, which was introduced directly on its protocol rather than through a centralized entity, might point to a new trend. This method allows for a more equitable price setting that’s driven by the community rather than initial listing hype.
If the industry moves toward more transparent, automated, and community-driven practices, we might see a shift towards a more stable and fair trading environment. It’s a change that could make the crypto market less about quick gains and more about sustainable growth and trust. I
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