Coinbase and Binance accused of charging hefty fees to list new projects

Leading crypto exchanges Binance and Coinbase are facing accusations from project founders who allege the platforms charge steep fees for new token listings.

The debate began on Oct. 31 when, Simon Dedic, CEO of Moonrock Capital, first alleged that Binance demanded 15% of a project’s token supply for listing on its platform, sparking initial discussions around listing practices.

Binance co-founder Yi He countered these claims, explaining that Binance conducts a thorough screening for listing projects but clarified it does not impose fees. According to the exchange’s listing policy, “Binance will not dictate a number, nor is there a minimum required listing fee.”

On Nov. 2, Coinbase co-founder and CEO Brian Armstrong responded to Simon Dedic’s post on X, stating that “asset listings on Coinbase are free” and asserting that the exchange does not charge fees for listing new tokens.

Following this, Andre Cronje, the founder of the Fantom Network, joined the conversation, claiming that Coinbase had quoted various fees between $30 million and $300 million for Fantom’s listing. 

Cronje, a prominent figure in decentralized finance and founder of projects like Yearn.finance and the Keep3r Network, noted that Binance had not charged any listing fees for Fantom.

Shortly after Cronje’s comments, Tron founder Justin Sun added his allegations on Nov. 4, claiming that Coinbase requested substantial fees to list Tron, specifically a $250 million Bitcoin deposit and 500 million TRX tokens, valued at around $80 million.

Like Cronje, Sun clarified that Binance imposed no fee for Tron’s listing, adding a comparative element to his claim.

Binance and Coinbase are two of the biggest names in the crypto world, with Binance holding over 39% of the global spot trading volume and Coinbase ranking as the sixth-largest exchange, commanding around 6% of the market.

Their reach and influence make them critical players for any project looking to reach a wide audience.

Users could pivot to decentralised exchanges

Allegations of hefty listing fees could stir up significant concerns around accessibility and transparency on these platforms and may even drive projects and users toward decentralized exchanges as an alternative, an idea that resonates with analyst Michaël van de Poppe.

In response to Dedic’s X post, De Poppe noted that users may increasingly gravitate toward DEXs, as “people are completely fed up with this structure,” adding that exchanges have the power to “kill your project.”

Dedic concurred with the analyst, stating that DEXes surpassing their centralized counterparts in the future is “inevitable.” 

Recent research hints that crypto investors, long frustrated by security and control issues on centralized exchanges, might already be drifting toward alternatives.

According to a report from 0XScope research, DEX trading volumes witnessed an uptick in volume this year, surpassing $250 billion on two occasions for the first time since late 2021.

Meanwhile, CEX’s are also more prone to security breaches as evidenced by the several high-profile attacks that transpired just this year alone.

For instance, India’s WazirX lost over $235 million after its hot wallets were breached and users were left with their remaining funds frozen in the exchange. Japan’s DMM lost over $300 million in a similar attack.

Other issues, like the collapse of FTX—a former industry giant—and frequent regulatory hiccups faced by major players like Binance, have further strained confidence in centralized platforms. 

These setbacks could prompt more users to explore decentralized platforms, where they have greater control over their assets while also having to spend less on fees.

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