Changpeng Zhao Addresses Binance Listing Process Amid Test (TST) Token Controversy

•  Binance’s listing of the TST token sparked concerns over its vetting process, as Zhao distanced himself from involvement.
• Zhao called Binance’s token listing approach “a bit broken,” highlighting price volatility before centralized exchange trading.
• TST surged 300% post-listing before dropping 60%, while Binance Coin (BNB) gained 7% amid discussions on listing practices.

Binance co-founder Changpeng Zhao has commented on the recent controversy surrounding the Test (TST) token listing. Zhao, who previously shared a video tutorial featuring the TST token, saw its price surge sharply before clarifying that the content was only for educational purposes.

Questions Over Binance’s Listing Standards

The listing of TST has raised questions about Binance’s commitment to fundamental analysis in token selection. Zhao has consistently supported projects with strong fundamentals, yet his mention of TST, a meme-like token, has led to scrutiny. Crypto enthusiasts have questioned whether Zhao is shifting focus away from fundamental projects or embracing meme-based assets.

Responding to concerns, Zhao stated that he is not involved in Binance’s listing process. He explained that exchanges compete to list tokens with high trading volumes as early as possible. According to Zhao, projects that attract significant trader interest will naturally gain exchange listings without direct negotiations.

Zhao Calls the Listing Process Broken

Zhao has expressed concern about the listing process, calling it “a bit broken” due to the four-hour window between listing announcements and actual trading. During this period, token prices on decentralized exchanges (DEXs) often surge before being sold on centralized exchanges (CEXs). He noted that this pattern was evident in the TST token’s volatile price movement. Zhao acknowledged the issue but stated there is no clear solution to address it.

One user proposed simultaneous listings on CEXs and DEXs to curb volatility. Zhao agreed with the idea, suggesting that CEXs should list tokens automatically, similar to DEXs. However, he noted that he no longer manages Binance’s operations.

Following its listing, the TST token’s price surged 300% to $0.50, with daily trading volume increasing 372% to $1.42 billion. However, the surge was short-lived as the token’s value dropped 60%, now trading below $0.20. Meanwhile, amid discussions on Binance’s listing process, Binance Coin (BNB) saw a 7% price increase earlier today.