Author: Wenser, Odaily Planet Daily

On November 3, Coinbase CEO Brian Armstrong retweeted a complaint from Moonrock Capital CEO Simon, who posted on November 1 about the high listing fees on centralized exchanges. Armstrong stated, "Listing on Coinbase is free, and you can leave a message on Asset Hub for help. Also, yes, listing on DEXs is a good option (we also provide corresponding support in our products)."

This statement stirred up a lot of reactions, with various industry professionals expressing differing opinions. Some believed his attitude was sincere, while others thought it was nonsense. Odaily Planet Daily will briefly analyze the mystery of exchange listing fees in this article.

Origin of the Listing Fee Discussion: High Token Shares and Distorted Listing Fee Models

The story began with a tweet from Moonrock Capital CEO Simon, in which he mentioned:

Recently, I communicated with a tier-one project that raised nearly $100 million. After wasting more than a year on Binance's due diligence, they finally received a listing quote. Binance demanded 15% of their total token supply. Imagine having to pay $50 million to $100 million just for listing on an exchange; not only is this cost unbearable for the project, but these allocated tokens are also the main reason for the market's liquidity bleeding. Some things must change.

Once the news broke, the market had mixed reactions. Some believed that the token allocation for listing fees was reasonable, as Binance needed to vet potentially worthless token projects and distribute airdrops to BNB holders and other Launchpool participants; thus, the listing platform should pay. Others strongly agreed, stating that DEXs would surpass CEXs for greater market share. Some bluntly stated, "From our observation, Binance's listing has harmed many projects; simply put, it's not worth it."

In summary, most project parties in the market hold a negative view of the excessively high listing fees on exchanges, believing that centralized exchanges represented by Binance are "bloodsucking." However, many retail investors see this as necessary, as it means Binance would "pass on the benefits to the public." Many also took this opportunity to discuss the "listing fee," which appears somewhat distorted during non-bull markets, believing it has become the "best tool" for exchanges to extract market liquidity.

Subsequently, Coinbase CEO Brian Armstrong "joined the fray," stating that "listing on Coinbase has always been free." This statement prompted industry OGs to react, with many expressing their disagreement, some even angrily denouncing his claims as nonsense.

Industry Voices: Facts Contradict Statements, Is Coinbase "Deceiving"?

Brian's statement was clearly not agreed upon by everyone, as the comments section of his tweet saw participation from figures like Sonic Labs co-founder Andre Cronje, TRON founder Justin Sun, and Runestone founder Leonidas; previously, Binance co-founder He Yi also expressed his views and clarifications.

AC Claims "Coinbase Charges Too Much"

According to AC's comments: "Binance did not charge us a listing fee, but Coinbase has repeatedly asked for fees, quoting $300 million, $50 million, and $30 million, with the most recent quote being $60 million."

Following this, former Coinbase employees and builders from Moonwell responded, suggesting that he might have contacted fake Coinbase listing workers and doubted Sonic Labs' due diligence. AC responded bluntly, stating, "I did not sign a confidentiality agreement, so I am very willing to provide relevant evidence (the quotes come from multiple employees/departments at Coinbase over the years through email, Telegram, and Slack). It can now be confirmed that Coinbase can argue that this is not a listing fee but other fees, but this will still translate into the project's listing cost. I know Coinbase may legally make some cuts, but I am happy to disclose all evidence and let the public judge."

Justin Sun Claims "Coinbase is Asking for Too Much"

Around 2 PM, TRON founder and Huobi HTX Global Advisory Committee member Justin Sun posted regarding the Coinbase listing fee controversy, stating: "Binance charged us $0, while Coinbase asked us to pay 500 million TRX (worth about $80 million) and required us to deposit $250 million in BTC in Coinbase Custody to enhance its performance. I have great respect for Coinbase and its CEO, but what they say is not true."

It is clear that Justin Sun also disagrees with Brian's statements, believing that compared to Binance, Coinbase's listing demands are more outrageous, akin to "asking for too much."

He Yi Claims "Listing Allocation Shares Consider Users"

After AC's comment tweet was published, Binance co-founder He Yi quickly responded:

If a project does not pass the screening process, no matter how much money or what percentage of tokens, it cannot be listed on Binance.

DYOR------Projects already listed on Binance have clear introductions in the token allocation section; please analyze the percentages yourself to see if there is any so-called 20%, 15%, etc.

Airdrop------The airdrop rules for Binance's launchpool and other listings are transparent and clear, but it does not mean that projects willing to give airdrops can list on Binance. If you have 20% of tokens and want to collaborate with Binance for an airdrop, feel free to work with our Web3 wallet.

FUD will never disappear, but it makes us stronger. Gossip easily gains traffic, and business competition is always filled with dark sides; when you understand the rules of how this world operates, you will no longer be easily swayed by rumors, thus gaining the ability to think independently. People like AC, who dare to speak the truth amidst the noise, are the ones truly deserving of respect in the community.

Coinbase VS Binance Listing Documentation: The Former Emphasizes "Free," the Latter Emphasizes "Charity + Transparency"

In May 2022, Coinbase Chief Product Officer (CPO) Surojit Chatterjee released the "Coinbase Listing Announcement." In contrast, Binance published the "Listing Tips from CZ" announcement on June 15, 2021, and updated it on January 2, 2024. In terms of emphasis, Binance slightly outshines.

In terms of content details, the Coinbase announcement mentions that the asset evaluation and listing process is mainly composed of four steps, with a focus on "free listing":

1. Application. The asset issuer first creates an account in our Asset Hub and then submits an application containing all relevant information about their asset.
2. Evaluation. Coinbase's Digital Asset Listing Group (DALG) evaluates the information submitted through Asset Hub using our standard listing evaluation framework to ensure the asset meets our legal, compliance, and technical security review eligibility requirements.
3. Listing. Once approved by DALG and integrated with our platform, the asset can be listed on our exchange. Listing on the exchange does not mean Coinbase endorses the asset, but indicates it meets Coinbase's listing requirements.
4. Monitoring. We continuously monitor all assets on the exchange, and if these assets no longer meet our requirements or new information arises, we may delist these assets from the exchange.

On the other hand, Binance's token listing announcement is divided into sections such as application form, bonus points, penalty points, contacting Binance, evaluation, and fees, with a focus on "charity + transparency"------although Binance does a good job of publicly disclosing Launchpool shares, the specific listing fees have always been kept secret:

Fees We donate all listing fees to the 100% transparent Binance Charity Foundation, and you can track the flow of funds on the blockchain. Note 25: There is no limit on the number of tokens; please submit the quantity you deem appropriate. The number of tokens can reflect your willingness to bring a positive impact to the industry.

In terms of the detail and attention to various aspects of the content description, Binance's token listing management regulations are undoubtedly more refined and procedural than those of Coinbase. As for the listing regulations for each project, there may also be different execution plans, and we look forward to Binance providing clearer explanations in the future.

Conclusion: Listing Fees May Gradually Evolve into "Project Marketing Costs + Community User Rewards"

Overall, the market discussion regarding exchange listing fees mainly focuses on:

1) Is the token allocation percentage reasonable?

2) Is the standard for listing fees within a bearable range for project parties?

3) Does the final flow of listing fees provide certain returns to project users and the exchange's real users?

As exchanges continue to face liquidity challenges and DEX trading volumes reach new highs, perhaps evolving from "protection fees unilaterally charged by exchanges" to "project marketing costs + community user rewards" is a better development direction.

Regarding AC's mention of "considering providing relevant evidence to explain Coinbase's listing fees," Odaily Planet Daily will continue to track subsequent developments to keep readers informed of more effective information in a timely manner.