Changpeng Zhao, the CEO of Binance, has clarified that the company does not charge 400 bitcoin ($2.5 million) to list cryptocurrencies on its platform.
Cryptocurrency researcher Christopher Franko, last week stated that Binance, the world’s largest digital asset exchange has been charging cryptocurrencies a listing fee of 400 BTC to include them on its exchange.
Franko mentioned a screenshot of an email with the address firstname.lastname@example.org, an address which supposedly claimed that it costs 400 BTC to list Expanse, his blockchain project on the exchange.
But on August 12, CZ issued an official statement denying the claims of Franko, claiming that the exchange does not list cryptocurrencies for 400 BTC or even 4,000 BTC without having due diligence and making them undergo a severe verification process.
The statement of CZ states:
“We don’t list shitcoins even if they pay 400 or 4,000 BTC. ETH/NEO/XRP/EOS/XMR/LTC/more listed with no fee. Question is not ‘how much does Binance charge to list?’ but ‘is my coin good enough?’ It’s not the fee, it’s your project! Focus on your own project!”
“Also, the email Franko showed is a spoofed/scam email, not from Binance. Binance never quotes fees in the email, and not in BTC. Project owners should be able to spot email spoofing, those who can’t should not issue a coin. The communication process/method tells a lot about a coin,” he added.
Being a commercial company and an exchange, just as other major stock markets require listing fees and maintenance costs before listing new assets, it is right for Binance and other cryptocurrency exchanges to accept listing fees to include a cryptocurrency into its platform.
The cost of the fee charged is not important, whether that is 4 BTC, 40 BTC, 400 BTC, or 4,000 BTC, as blockchain projects that experience gains in the listing, even with a high fee, will take the offer, and that is how the free market operates. If there are sufficient demand and low supply, the price of a product certainly increases.
However, CZ noted that Binance does not carelessly accept listing fees to include cryptocurrencies, which is essential for the users of Binance, because it shows that even for a large amount of capital, the exchange does not list cryptocurrencies that are not legal.
During the course of the week, blockchain project operator in South Korea discussed regarding the black market of cryptocurrency listings, wherein brokers charge $2 million to $5 million for guaranteed listings.
These charges are illegal and cryptocurrencies that pay for such services are also part of an illegal group of operations. Many blockchain operators reached out to the top three exchanges in the world, including Binance, OKEx, and Huobi, all of which stated that they do not accept listing fess and that cryptocurrencies will have to go through the right process to be listed.