Alleged Listing Fees at Binance and Coinbase
The issue came to a head when Simon Dedic, CEO of Moonrock Capital, took to X (formerly Twitter) to reveal an eye-opening claim about Binance.
According to Dedic, a top-tier crypto company was asked to pay the equivalent of 15% of its token supply in order to be listed on Binance after a year-long due diligence process.
He estimated that the cost of such a listing could range between $50 million and $100 million. This revelation sent shockwaves through the crypto community and prompted a flurry of responses, including a statement from Coinbase’s CEO, Brian Armstrong, who denied any listing fees, claiming that assets can be listed for free on Coinbase.
However, Dedic’s comments raised the broader issue of whether Binance and Coinbase are being transparent about the costs associated with listing tokens.
While Armstrong’s response painted a picture of openness and fairness, the claims from other figures in the industry pointed to a different reality.
Andre Cronje’s Claims: Listing Fees at Coinbase
Andre Cronje, the Chief Technology Officer at Sonic Labs, weighed in on the debate, offering his own perspective based on his interactions with both exchanges.
Cronje stated that Binance did not ask his company for any listing fees, but Coinbase allegedly demanded significant payments—sometimes as high as $300 million, depending on the token and negotiations.
He argued that Coinbase’s requests were for participation in its Earn program, a platform for earning rewards on digital assets, but emphasized that these payments effectively served as “listing fees,” even if they were not officially categorized as such.
Cronje’s comments raised questions about the transparency of Coinbase’s listing process. While the Earn program is marketed as optional, the payments involved can be large, leading some to wonder if this is just a way of masking listing fees under a different name.
Cronje himself claimed that he was ready to publicly release all the evidence, allowing the community to decide whether these transactions were fair or misleading.
Justin Sun Supports Cronje: Binance Doesn’t Charge
Adding to the debate, Tron founder Justin Sun also weighed in, confirming that Binance had not charged him a listing fee for Tron’s TRX token.
However, Sun revealed that Coinbase had asked for substantial payments, allegedly requesting $80 million in TRX and a deposit of $250 million in Bitcoin to facilitate listing on the platform.
Sun’s comments echoed Cronje’s sentiments about Coinbase’s hidden costs and fueled further skepticism regarding the platform’s practices.
The claims from both industry veterans have prompted a deeper investigation into how crypto exchanges like Coinbase and Binance manage their listings and the fees they charge—whether explicitly or through indirect methods like the Earn program.
OKX Defends Coinbase: No Listing Fees
On the other side of the argument, some figures have defended Coinbase’s practices. The Chief Marketing Officer of OKX, another leading exchange, described Coinbase as “honest” and “transparent,” asserting that it is “impossible” for Coinbase to charge listing fees.
Luke Youngblood, co-founder of Lunar Labs, also dismissed Cronje’s claims, suggesting that the payments Cronje referred to were likely related to Coinbase’s Earn program, a marketing initiative that offers users rewards for holding certain assets.
Youngblood emphasized that the Earn program is entirely optional and does not affect whether a token is listed on Coinbase.
He cited the example of Moonwell, which declined to participate in the Earn program due to its high costs but still successfully secured a listing on Coinbase.
The Impact on the Crypto Industry
The debate surrounding listing fees at Coinbase and Binance highlights a larger issue within the cryptocurrency industry: the lack of transparency.
As the market matures and regulators begin to pay closer attention to the practices of crypto exchanges, there is increasing pressure on these platforms to be more forthcoming about their fees and the costs associated with token listings.
The revelations surrounding Coinbase and Binance are just the tip of the iceberg, and this debate is likely to continue as more companies share their experiences.
Whether or not Coinbase and Binance are charging hidden fees, or simply utilizing alternative programs to facilitate token listings, remains a contentious issue.
The crypto community continues to grapple with the balance between openness, business practices, and regulatory scrutiny as the industry evolves.
