Binance and Coinbase Face Controversy Over High Listing Fees
Over the weekend, a controversy arose around Binance and Coinbase, two major centralized crypto exchanges, over accusations of high listing fees. Simon Dedic, CEO of Moonrock Capital, questioned these exchanges' practices, citing a Tier 1 project that had raised nearly nine figures and faced difficulties in listing on Binance.
After a prolonged due diligence process with Binance, the project was reportedly asked to give up 15% of its token supply for a listing, potentially costing between $50 million and $100 million. This sparked discussions within the community about the justification for such fees.
Coinbase’s CEO, Brian Armstrong, responded to Dedic's concerns by stating that Coinbase does not charge for listings. Andre Cronje, founder of Sonic Labs, contested this claim, alleging that Coinbase requested up to $300 million in listing fees from his company. Cronje noted that Binance did not impose any fees on Sonic Labs.
Further supporting Cronje, Tron founder Justin Sun shared his experience, stating that Coinbase requested 500 million TRX tokens (approximately $80 million) and a $250 million BTC deposit in Coinbase Custody. These assertions raised questions about potential disparities in treatment between established and newer projects.
On Monday, Binance’s founder, Changpeng Zhao (CZ), addressed the issue, thanking Sun for his support. Zhao emphasized the importance of focusing on project development rather than exchange listings, noting that Bitcoin never paid listing fees. Sun reiterated this perspective, highlighting the significance of building projects.
Yi He, Binance’s co-founder and Chief Customer Service Officer, refuted the allegations, calling them unfounded and encouraging reliance on research over rumors. She asserted that Binance's listing standards are “transparent and clear” and dismissed claims of a “20% listing fee.”