Binance Faces User Backlash Over Poor Token Performance, FDUSD Depegging

Binance, one of the world's leading cryptocurrency exchanges, is facing significant backlash from its user base. The controversy stems from several issues, including the poor performance of tokens listed on the platform, the depegging of the FDUSD stablecoin, and allegations of unethical behavior. These events have raised serious questions about Binance's credibility and its standing in the crypto industry.

One of the most pressing issues is the poor performance of tokens listed on Binance. A significant number of tokens listed in 2024 and 2025 have recorded negative returns, which has led to criticism that Binance prioritizes listing fees over the interests of its users. A prime example is the ACT token, a meme coin that quickly plummeted after being listed on the exchange. Wintermute, a major market maker, dumped a large amount of ACT, exerting strong downward pressure on its price and raising concerns about the transparency of Binance’s listing process. This has led to accusations that Binance is listing "shitcoins" to collect high listing fees without considering the quality of the projects.

The FDUSD stablecoin has also become a focal point of controversy. FDUSD lost its peg, dropping to $0.89 after reports surfaced that its issuing company had gone bankrupt. Wintermute, one of the largest FDUSD holders outside of Binance, withdrew 31.36 million FDUSD from the exchange, which is believed to have exacerbated the depegging situation, sparking panic in the market. More concerning, a community member claimed that some Binance employees leaked internal information about the FDUSD incident so they could select whale chat groups. If true, this would severely damage Binance’s reputation and raise major questions about the platform’s transparency and ethics.

Overall, the community’s dissatisfaction is growing, with many users calling for a boycott of the exchange. Such negative reactions are shaking user confidence in the platform, which was once considered a symbol of credibility in the crypto space. Popular crypto YouTuber Jesus Martinez wrote, “Binance today caused massive liquidations on alts listed on their exchange. I warned you all yesterday about their very dirty tactics, specifically GUN. I refuse to use Binance #BoycottBinance.” These accusations stem from a central issue that Binance prioritizes profits over user interests. Over the past few months, the community has constantly criticized its listing strategy, arguing that the exchange focuses on “shitcoins” to collect high listing fees without considering project quality.

Although the exchange recently introduced a community voting mechanism to decide on listings, this might not be enough to silence the criticism. As a Tier-1 exchange, the company is evaluated based on trading volume, security, regulatory compliance, and community trust. However, recent events suggest that the exchange is struggling to maintain these standards. The community's dissatisfaction and calls for a boycott highlight the need for Binance to address these issues and regain the trust of its users.