The cryptocurrency industry harbors many undisclosed transactions in its hidden corners.
The Controversy Over Exorbitant Listing Fees
The debate surrounding listing fees ignited after Moonrock Capital CEO Simon Dedic's post complaining about sky-high charges. Prominent figures across the industry have weighed in:
- Andre Cronje (Sonic Labs co-founder) publicly disputed Coinbase's claims.
- Justin Sun (TRON founder) stated, "Binance listed TRX without charging us. Coinbase demanded 500M TRX (~$80M) and a $250M BTC deposit in Coinbase Custody."
- Conflux COO Yuanjie Zhang added, "Binance charged zero listing fees for CFX but required a $150K BUSD deposit as collateral due to poor token performance."
Binance responded swiftly, with Changpeng Zhao (CZ) clarifying, "Bitcoin never paid listing fees. Focus on projects, not exchanges."
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What Constitutes "Hidden" Listing Fees?
In September, Binance's Yi He outlined their listing framework:
- Four-stage review process (business, research, committee, compliance)
- No direct bribes in tokens/stablecoins
Required allocations:
- 5% for Launchpool distributions
- Reserved airdrops for specific users
- Price-stabilization collateral (e.g., CFX's $150K deposit)
Industry Perspectives:
- Critics argue these are listing fees in disguise.
- Supporters view them as fair user incentives.
Centralized Exchanges: Systemic Risks
Beyond listing fees, CEXs face transparency concerns:
- Revenue streams: Trading fees, idle asset liquidation, arbitrage
- Malpractices: Wash trading, fake volume, stop-loss hunting
- Market manipulation parallels to Robinhood's GME restrictions
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Negative ROI: The Bigger Picture
2024 data shows most exchanges deliver negative average returns:
| Exchange | Avg Return |
|---|---|
| Bybit | -50.20% |
| KuCoin | -48.30% |
| Bitget | -46.50% |
| Binance | -27.00% |
| OKX | -27.30% |
Simon Dedic concludes: "The real question isn't which CEX is better—it's which DEX you should use."
FAQ
Q1: Do all exchanges charge listing fees?
A: Policies vary. While Binance denies direct fees, others like Coinbase have been accused of multimillion-dollar demands.
Q2: What happens to failed listing deposits?
A: Collateral may be forfeited (e.g., CFX's $150K penalty) or partially refunded based on performance.
Q3: Are airdrops considered listing costs?
A: Technically no—these are user acquisition tools, though some argue they're indirect fees.
Q4: How do DEX listing models differ?
A: Decentralized platforms typically use governance votes or liquidity thresholds rather than opaque fees.
Q5: Why do projects accept negative ROI listings?
A: Exchange visibility often outweighs short-term losses for long-term adoption.
Q6: Can retail investors verify listing fee claims?
A: Rarely. Most evidence comes from leaked communications or insider testimonies.