Binance's CZ Warns of DEX Volatility: TST Listing Sparks Concern

Binance founder Changpeng "CZ" Zhao has raised concerns about the cryptocurrency exchange's token listing process, suggesting that the short notice given before new tokens are listed could lead to significant price volatility on decentralized exchanges (DEXes).

Zhao pointed out that the typical four-hour window between a token's announcement and its listing on Binance could result in substantial price spikes on DEXes, followed by a sell-off on centralized exchanges (CEXes). He expressed uncertainty about finding a solution to this issue and cautioned market participants to be aware of the potential risks.

The issue came to light with the unexpected popularity of TST, a memecoin that was featured in a BNB Chain video tutorial about launching memecoins through the Four.Meme platform. The coin's exposure was further amplified by Zhao's subsequent social media post last week, which was intended to clarify that he did not endorse TST, but instead resulted in increased attention for the token.

Following the buzz around TST, Binance announced on the same day that it would introduce TST/USDT and TST/USDC trading pairs. Since its listing, TST's value has climbed by 38%, trading at approximately $0.19. The coin's market capitalization has reached $185.9 million, with a fully diluted market cap of $195.5 million.

Zhao reiterated that his mention of TST was not an endorsement and that it was merely used as an example in a tutorial. He also distanced himself from the listing process at Binance, stating, "I don’t know for sure why TST got listed on Binance. I am entirely NOT involved in their listing process."