Changpeng Zhao, the co-founder of Binance, recently highlighted issues related to the asset listing procedure on social media, sparking interest in the topic. He discussed the challenges using a test token called TST, which was created by the BNB Chain team for educational purposes. This token gained traction through the Four_meme launchpad, designed for the creation of memecoins.
What Did Zhao Say About Listing Procedures?
Zhao pointed out that the transition from an announcement to a listing on Binance occurs quickly, with significant price movements detected in decentralized markets during this brief window. He cautioned that rapid changes in transactions could lead to unexpected market volatility.
“The Binance listing process has some issues. An announcement is made, and within four hours, the listing happens. During this time, token prices rise on decentralized exchanges, followed by sales on centralized exchanges. Since I don’t have a concrete solution, I advise caution.” – Changpeng Zhao
Could Extended Announcement Period Help?
In response to the listing of TST, traders experienced drastic price fluctuations. Zhao noted that extending the period between announcements and actual listings might mitigate these risks. He clarified that while he does not endorse TST’s listing, it does not reflect a negative view towards the asset itself.
– Zhao’s comments shed light on the potential perils of rapid listings.
– Suggested a longer announcement phase may be beneficial for traders.
– His previous leadership at Binance raised questions about compliance, especially after a penalty for violating U.S. anti-money laundering laws.
As discussions surrounding Binance’s listing protocols continue, it is crucial for traders to remain alert to sudden market changes that can arise from these quick listings.
