Binance, the largest crypto-to-crypto exchange, has announced via a press release that, going forward, they will be making their listing fees transparent. On October 8, Changpeng Zhao, the CEO of Binance, wrote that “Starting immediately, and going forward, we will make all listing fees transparent and donate 100% of them to charity.” This means that the general public will be made aware of any future cryptocurrency listing fees on the exchange. Zhao added that the action would “further push Binance’s charity initiatives.” Binance’s listing fees going transparent could signify a widespread change in the way centralized exchanges function when it comes to adding new coins and tokens to their database. In a Twitter post, Zhao even expressed that this is his desire.
The significance of understanding Binance listing fees
The news of Binance’s change is extremely important because the exchange currently has a stronghold when it comes to crypto-to-crypto trades. Binance leads the crypto world in this type of exchange, which gives it a certain level of resonance when it comes to trendsetting. Before October 8, Binance’s listing fees, along with the listing fees of most other crypto exchanges, was something which was kept largely behind closed doors. People were aware that getting a listing was expensive, but nobody could point to a definitive figure or database of figures. An article published in March 2018, noted that listing fees for some exchanges could run as steep as $1,000,000, however word of this came from leaked sources rather than official documentation. Now that Binance’s listing fees will be visible to the public, people can finally understand what amount of money is typically expected for this action. With that being said, Changpeng Zhao also made it clear that Binance is not setting specific listing fees themselves, and that developers of coins and tokens are, in fact, able to choose the number. This means that there is likely a significant level of variety in rates.
Binance’s charitable side
The fact that Binance will be donating all the proceeds from listing fees to charities is both noble and impressive, considering how it has been long theorized in the past that the exchange makes most of its money from listing fees. That fact that 100% of Binance listing fees goes to charity also means that they can avoid a minimum fee level (if there ever was one to start with). The press release states “Binance will not dictate a number, nor is there a minimum required listing fee.” That further means that making large donations does not raise a coin or token’s chances of getting listed. Binance will be focusing exclusively on choosing cryptocurrencies which they deem fit for their business, rather than based on donations.
Kai is a cryptocurrency copywriter and professional trader. He can often be found investigating various cryptocurrencies, whitepapers, and blockchain technologies. Kai has been a professional writer for 5+ years, and has invested in 50+ different coins and tokens. He also currently studies Law and Philosophy at university.