DayFR Euro

Crypto: Accused of opaque practices, Binance clarifies its listing policy


10 a.m. ▪
5
min reading ▪ by
Luc Jose A.

As centralized exchanges come under increasing pressure, a controversy erupts around Binance over the transparency of its listing policies. Indeed, Binance co-founder Yi He spoke out to clarify the platform’s practices in response to harsh accusations launched by Moonrock Capital, a consulting firm specializing in crypto investments. The case reveals underlying tensions around the governance of exchanges and their ability to convince investors of their impartiality.

Clarifications on Binance’s listing policy

Yi He, co-founder of Binance, defended the platform on can be listed on the exchange. Thus, Yi He responded, and emphasized that “Binance does not ask for a percentage of tokens or fixed fees for new listings”. She recalled that, since 2018, all donations associated with the listings have been entirely donated to charitable causes, and added that each project is free to propose the amount of its donation itself without any minimum amount required. “There are no hidden fees or imposed percentages,” she insisted, and insists on the transparency of Binance’s practices.

This position by Yi He comes as centralized exchanges are increasingly scrutinized by the crypto community in search of ethical practices and transparency. Binance has chosen to put forward a separate policy, because the platform asks projects to decide for themselves the amount of their donation during listings, in order to avoid any suspicion of opaque commercial practices. Thanks to this independence given to projects, Binance is trying to stand out from an industry where accusations of onerous fees and imposed conditions have often tarnished the reputation of exchanges.

Reactions and implications in the crypto industry

Yi He’s statement was not enough to calm industry critics, and some influential players responded. They highlight what they see as a recurring problem on centralized platforms. Andre Cronje, co-founder of Sonic, added his perspective to the debate. He criticizes Binance, but also Coinbase for similar practices, and recalls that “centralized exchanges often offer high fees and restrictive conditions for their listings”. These accusations target centralized exchanges more broadly and highlight discontent on the part of certain developers who now favor decentralized alternatives to escape the pressures of traditional exchanges.

In addition, these criticisms add to a difficult context for centralized exchanges, whose transaction volumes have been in notable decline for several months. According to CCData data, Binance saw a 23% drop in trading volumes in September 2024, while other major exchanges like OKX, HTX, and Kraken saw similar declines. This decline can be explained by several factors, including geopolitical uncertainties, the rise of decentralized exchanges and the growing distrust of users regarding the practices of centralized exchanges.

Faced with growing pressure from the crypto community, the need for greater transparency and better ethics is becoming imperative for centralized exchanges. If Binance and other centralized platforms wish to regain the trust of projects and investors, they will undoubtedly have to rethink their practices and adapt to new user expectations. The emergence of decentralized platforms could, at the same time, become an increasingly credible alternative, as it tests the model of traditional exchanges in the months to come.

Maximize your Cointribune experience with our ‘Read to Earn’ program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.

Luc Jose A.

A graduate of Sciences Po and holder of a blockchain consultant certification issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of blockchain to transform many sectors of the economy, I took the commitment to raise awareness and inform the general public about this constantly evolving ecosystem. My goal is to enable everyone to better understand blockchain and seize the opportunities it offers. I strive every day to provide an objective analysis of current events, to decipher market trends, to relay the latest technological innovations and to put into perspective the economic and societal issues of this ongoing revolution.

-

Related News :