Binance’s unintentional listing of TST, a cryptocurrency token, has prompted the former CEO of the cryptocurrency exchange, Changpeng Zhao (CZ), to speak out. The crypto, which the crypto community has turned into a speculative meme, went viral after Zhao highlighted the chain of events. However, Binance’s listing of TST has exposed a weakness in the listing process of centralized exchanges (CEXs).
CZ notes that Binance’s listing process is ‘broken’
In a recent post on X, Zhao noted the flawed nature of Binance’s listing process. According to Zhao, the traditional four-hour period between Binance’s listing announcement and the time crypto tokens are released on the platform has caused digital assets to exhibit unnatural behavior.
Since most of the tokens were already traded on decentralized exchanges (DEXs), Zhao said traders took advantage of Binance's announcement to buy the tokens on the DEX, driving up the price, only to sell them as soon as the CEX listed them.
While noting this limitation, Zhao understands that this is a complicated situation, given the need to provide prior notice before listing a token on a CEX. However, he does not rule out the possibility that the change could force CEX to redesign its listing process.
Zhao agrees with the idea that CEXs should adopt the model that DEXs use. That would involve a more integrated approach to liquidity, requiring CEXs to open trades simultaneously and contribute significant liquidity to the order book.
DEX-style listings can overcome volatility
Cryptocurrency users believe that adopting an integrated liquidity approach will help stabilize the initial price of tokens and reduce volatility caused by arbitrage and speculation. This mirrors how DEXs work: projects launch successfully with a healthy market before gaining widespread adoption.
Notably, a Chinese crypto community repurposed the TST token from its original design as part of the BNB Chain team's guidelines, transforming it into a speculative meme coin. Since then, the cryptocurrency has gained popularity, attracting significant attention among crypto traders.
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