The world’s largest crypto exchange in terms of trading volume has declared that it will make new crypto listing fees transparent then donate all of the fees to charity.
Listing fees have become a pain in the neck for crypto projects. Projects need to have their coins listed on exchanges in order to generate liquidity. Oftentimes, when a coin gets listed on a well-known crypto exchange, it causes a “spike” in the value of that particular coin. However, many crypto projects have been complaining of excessive listing fees.
According to an April report by Bloomberg, Autonomous Research stated that many crypto trading platforms charge between the regions of $1 million to $3 million just to list a token. The amount is 10 times higher than what traditional exchanges like Nasdaq charge for securities.
At present, many of those complaints are directed at Binance, which now operates mostly from Malta. Expanse (an Ethereum fork) co-founder Christopher Franko tweeted last August that Binance was demanding 400 Bitcoin or roughly $2.5 million to list a coin. Changpeng Zhao, the CEO of Binance, was quick to belie the allegation, tweeting:
“We don’t list shitcoins even if they pay 400 or 4,000 BTC.”
Binance states that now crypto projects will be able to “name their price.” In the announcement, the crypto exchange says:
“Binance will not dictate a number, nor is there a minimum required listing fee.”
The company further states that it will not be influenced by higher bids either, adding:
“A large donation does not guarantee or in any way influence the outcome of our listing review process.”
The crypto exchange declares that once the parties involved reach an agreement, the fee will be revealed through the company’s charity arm, the Blockchain Charity Foundation. The exchange initiated its charity arm in Malta last July to serve as a channel for its philanthropic efforts. Helen Hai, a goodwill ambassador for the United Nations Industrial Development Organization, heads the foundation.
In reference to his company’s announcement, Zhao tweets:
“Hope others will follow.”