As a seasoned analyst with over two decades of experience in the financial sector, I have seen my fair share of market manipulations and hidden fees. The recent allegations regarding the astronomical listing fees requested by some prominent cryptocurrency exchanges such as Coinbase, if true, are concerning to say the least.
In some instances, it’s been claimed that prominent cryptocurrency trading platforms may request substantial amounts – sometimes reaching hundreds of millions of dollars – in exchange for listing a new digital token.
As per Justin Sun, the founder of Tron, Coinbase reportedly demanded a total of approximately $330 million in fees to list Tron (TRX). Sun shared this information on platform X on November 4th. He stated that unlike Binance, which did not charge any fee, Coinbase requested 500 million TRX tokens, worth around $80 million at the time, as well as a Bitcoin deposit of $250 million to be held in Coinbase Custody.
It’s striking that Sun’s remarks seem unsupported by proof, given the assertion by Coinbase that they don’t impose charges when adding new cryptocurrencies to their platform. This new twist is unexpected in light of this claim.
According to a blog post by Coinbase’s co-founder and CEO, Brian Armstrong, it is not necessary to pay for the listing of assets on Coinbase.
Among the most widely used centralized cryptocurrency exchanges globally, Binance and Coinbase stand out. Binance, in particular, holds the title as the world’s largest crypto exchange, handling approximately 39.5% of the entire spot trading volume in cryptocurrencies. On the other hand, Coinbase ranks sixth, managing about 6.1% of the market share, according to data from CoinGecko.
CryptoMoon has approached Coinbase and Binance for commentary.
Fantom token listing allegedly costs up to $303 million — Andre Cronje
Tron founder Sun was not the only crypto personality who made claims about token listing fees.
Andre Cronje, creator of the Fantom Network, shared that Coinbase suggested different listing fees for Fantom (FTM), ranging from $30 million to as much as $300 million. In response to this, Cronje commented on Armstrong’s post saying, “Binance charged us nothing. Coinbase asked us for $300 million, then $50 million, $30 million, and most recently $60 million.
Andre Cronje, a highly esteemed figure, is known for his significant contributions within the realm of decentralized finance. His creation, Sonic blockchain, boasts of being one of the swiftest chains compatible with the Ethereum Virtual Machine, achieving a “real” 720-millisecond finality in testing conditions.
Previously, Cronje founded Yearn.finance and the Keep3r Network.
Are CEX listing fees setting the stage for a DEX takeover?
After the first responses from Sun and Cronje, numerous individuals have expressed apprehensions about the long-term viability of existing Centralized Exchanges (CEXs).
In a recent post on October 31st, Simon Dedic, CEO and partner at Moonrock Capital, stated that other trading platforms are demanding large listing fees in the tens of millions. He further suggested that this trend might lead to a mass migration towards Decentralized Exchanges (DEXs).
“I think it’s inevitable that DEXs will take over at some point.”
If these rumors are true, they might pave the way for an expanding Decentralized Exchange (DEX) environment, as suggested by crypto trader, analyst, and entrepreneur Michaël van de Poppe in a recent October 31 post on his platform.
“I think that the DEXes are going to be way bigger as people are completely fed up with this structure. Exchanges have the power to literally kill your project.”
Over the last 12 months, Decentralized Exchange (DEX) trading volumes have experienced a substantial increase, exceeding $250 billion per month for the first time in March and June since December 2021, as indicated by a study from 0XScope that was made available to CryptoMoon.
On October 17th, the volume of trades on Decentralized Exchanges (DEXs) accounted for approximately 13.6% compared to Centralized Exchanges (CEXs). This means that for every billion dollars transacted on centralized platforms, around 136 million dollars is being exchanged on decentralized ones.
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2024-11-04 14:12