Simon, the CEO of Moonrock Capital, recently shared internal information that has raised concerns about Binance’s listing requirements.
According to Simon, a Tier 1 project with substantial nine-figure funding received an offer from Binance to list its token, but only after a year of due diligence. However, the catch was that the project was asked to provide 15% of its total token supply—valued at around $50 million to $100 million—which Simon noted is unaffordable for most crypto projects.
He suggested that these high listing demands are a reason for significant price drops seen in newly listed tokens on Binance.
In response, Coinbase CEO Brian Armstrong noted that Coinbase lists tokens free of charge, provided projects meet the exchange’s compliance requirements. Indeed, Armstrong used this opportunity to promote Coinbase as a more accessible platform for listing, highlighting Coinbase’s openness in comparison to Binance’s alleged costly demands.
Andre Cronje, a known figure in the crypto industry, then defended Binance by sharing his own experience. He claimed that Binance had not requested any listing fees for projects he was involved with, while Coinbase allegedly asked for listing fees of $300 million, $50 million, $30 million, and more recently $60 million, presumably for the $FTM token.
This series of tweets has sparked discussion, with some speculating that both Binance and Coinbase may involve third-party intermediaries who collect fees from projects looking to secure listings.
Simon noted the unexpected level of engagement his initial tweet received and expressed surprise that many in the community were unaware of these “dark practices” in the industry. He has hinted that he may reveal further details about similar practices in the crypto space soon.
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