- Binance had listed TST; an unintentional crypto token.
- Chanpeng Zhao observed a weakness in the CEX listing procedure.
- Users think centralized exchanges are due for evolution.
Binance has listed TST, an unintentional crypto token, leaving the crypto exchange’s former CEO, Changpeng Zhao (CZ), with a few things to say. The tutorial-designed crypto, which the crypto community turned into a speculative meme coin, went viral after Zhao highlighted the sequence of events. However, the Binance listing of TST has exposed a weakness in the centralized exchanges (CEX) listing procedure.
CZ Notes Binance Listing Process ‘Broken’
In a recent post on X, Zhao noted the flawed nature of the Binance listing process. According to Zhao, the traditional 4-hour period between Binance’s listing announcement and when crypto tokens go live on the platform exposed the digital assets to unnatural behavior. Because most of the tokens are already trading on decentralized exchanges (DEXs), Zhao stated traders take advantage of Binance’s announcements to purchase the tokens on DEXs, pushing prices up, only to sell off as soon as the CEX lists them.
Related: Crypto Community Repurposes Crypto Token For Speculation
While highlighting this limitation, Zhao understands it is a complicated situation, given the necessity of making announcements ahead of tokens listing on CEXs. Still, he does not discard the possibility of a change that could see CEXs re-engineer their listing procedure. Zhao agreed with an opinion suggesting that CEXs adopt the pattern used by DEXs. That would involve a more integrated approach to liquidity, requiring the CEX to open trading simultaneously and contribute substantial liquidity to the order book.
DEX-Style Listings Could Fix Volatility
Crypto users believe that adopting the integrated liquidity approach would help stabilize a token’s initial price and reduce the volatility caused by arbitrage and speculation. This mirrors how DEXs operate: projects launch successfully with a healthy market before increased adoption.
Related: Binance Listings 2024: Only 5 Tokens Show Positive Returns
Worth pointing out is that a Chinese crypto community repurposed the TST token from its original design as a tutorial piece by a BNB Chain team, converting it into a speculative meme coin. The cryptocurrency has since gone viral, gaining notable traction among crypto traders.
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