Binance co-founders, Changpeng Zhao (CZ) and Yi He, have recently addressed concerns surrounding the exchange’s token listing process, particularly following the controversial rise and fall of the Test (TST) token. TST, initially created as part of the BNB Chain’s tutorial, surged to a nearly $500 million market capitalization after being mentioned briefly in a tutorial video by CZ. Despite his clarification that the mention was for educational purposes and not an endorsement, TST’s price skyrocketed, prompting significant investor interest. However, the token’s value plummeted by more than 50%, highlighting potential issues in the listing process.

Yi He, co-founder of Binance, provided more context to the exchange’s token listing criteria in a Feb. 10 interview. She explained that the primary factors considered include the token’s return on investment (ROI), its potential to drive innovation and new users into the blockchain space, and its market performance across major exchanges. She emphasized that Binance must stay competitive by listing high-profile tokens with strong technological appeal, including meme coins, which can generate considerable hype and wealth effects.

The recent TST token saga has sparked debate over the listing process, particularly regarding decentralized exchanges (DEXs). CZ noted the issue of arbitrage opportunities, where DEX traders exploit short-term price movements before tokens are officially listed on CEXs like Binance, leading to significant selling pressure once listed.

In addition, Yi He addressed Binance’s internal compliance, revealing over 120 cases of misconduct, including 60 employee terminations. While most violations were not related to insider trading, they involved bribery and the misappropriation of company assets. Binance’s strict regulatory measures remain in place, as the exchange continues to navigate increasing scrutiny within the crypto market.

The TST token controversy and its dramatic price fluctuations have raised questions about the stability and transparency of Binance’s token listing process. Moving forward, the crypto community is looking for clearer guidelines and a more robust approach to prevent similar incidents.

Also read: RedotPay Partners with StraitsX and Visa to Transform Digital Spending