Coinbase is facing allegations of demanding exorbitant fees for token listings, with claims from Tron founder Justin Sun that the exchange requested $330 million to list TRX. Sun stated that Coinbase asked for 500 million TRX tokens, valued at around $80 million, along with a $250 million Bitcoin deposit for custody. These assertions challenge Coinbase’s public stance that asset listings are free, as stated by co-founder Brian Armstrong.
Additionally, Andre Cronje, founder of the Fantom Network, echoed Sun’s sentiments, revealing that Coinbase proposed various listing fees ranging from $30 million to $300 million for listing the Fantom token. In contrast, Cronje noted that Binance charged no listing fees, highlighting a significant disparity in practices between these leading exchanges. Binance has stated that it screens projects but does not impose listing fees, with all fees since 2018 reportedly going to charity.
The allegations have sparked a broader discussion within the cryptocurrency community about the sustainability of centralized exchanges (CEXs) and their listing policies. Critics argue that such high fees could prompt projects to migrate to decentralized exchanges (DEXs), where they might avoid these costs. Simon Dedic, CEO of Moonrock Capital, indicated that a shift towards DEXs seems inevitable as projects grow frustrated with current CEX structures.
The ongoing debate reflects the evolving dynamics of cryptocurrency trading platforms and the challenges faced by both CEXs and DEXs in catering to the needs of developers and investors. If these allegations are substantiated, they could further accelerate the trend of projects seeking alternative avenues for listing and trading their tokens.
