Binance's Zhao Calls for Radical Change in Token Listing Process

Binance's founder, Changpeng Zhao, has recently called for significant changes in the way new tokens are listed on centralized exchanges (CEXs). In a post on X, Zhao highlighted the issues with the current listing process, which often leads to market volatility and price manipulation.

Zhao pointed out that the current listing process, which can take as little as 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).

Zhao 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.

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. This change could make the crypto market less about quick gains and more about sustainable growth and trust.