Conflicting reports about cryptocurrency exchange listing fees have ignited a debate within the crypto community. Simon, CEO of Moonrock Capital, recently claimed that Binance, one of the world’s largest cryptocurrency exchanges, demanded 15% of a “Tier 1” project’s total token supply in exchange for a listing. This revelation followed a tweet from Coinbase CEO Brian Armstrong asserting that listing assets on Coinbase is free. However, prominent DeFi developer Andre Cronje disputed both claims, adding further fuel to the fire.
Simon detailed the alleged Binance incident, stating that the unnamed project, which raised close to nine figures in funding, endured over a year of due diligence with Binance. The final listing offer, according to Simon, included the staggering demand for 15% of the project’s token supply. He estimated this would equate to a cost of $50 million to $100 million, calling it “unaffordable for projects” and a contributing factor to declining token prices.
Armstrong’s assertion that Coinbase listings are free was directly challenged by Cronje. Cronje claimed that Binance charged his project, likely referring to Fantom (FTM), nothing for listing. Conversely, he alleged that Coinbase had requested varying sums for listing FTM, ranging from $300 million down to a more recent request of $60 million.
These conflicting accounts highlight the lack of transparency surrounding exchange listing practices. While Armstrong encouraged projects to submit listing requests through Coinbase’s Asset Hub, Cronje’s experience suggests a different reality. The significant sums allegedly requested by Coinbase raise concerns about potential barriers to entry for smaller projects and the potential influence of listing fees on token prices.
