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  • ExtraOrdinal Daily #119 | Binance Under Fire: CZ Admits Listing Process Is “Broken”

ExtraOrdinal Daily #119 | Binance Under Fire: CZ Admits Listing Process Is “Broken”

10th Feb 2025 ||| Issue #119
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Table of Contents

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Todays Top Stories

The Obvious Has Finally Been Spoken Of

Binance has long been regarded as the most influential exchange in crypto, with a listing often seen as a major milestone for any token. However, its listing process has increasingly come under fire, and its recent decision to list $TST—a newly launched token with little community presence and only a few days of trading history—has reignited concerns.

Many believe that $TST received preferential treatment due to belonging to Binance’s BNB Chain and prior mentions by former CEO Changpeng “CZ” Zhao. Meanwhile, countless other projects with larger communities and stronger fundamentals continue to struggle for a spot on the exchange.

This perceived inconsistency has raised fresh questions about Binance’s listing criteria and whether the process is truly fair.

A Broken System?

For years, Binance listings were seen as a catalyst for price surges, with traders anticipating a pump as soon as a new token was added.

But that era seems to be fading. Instead of long-term growth, newly listed tokens often experience extreme volatility, insider-driven price action, and sharp sell-offs that leave retail investors at a disadvantage. Even CZ himself acknowledged the issue, tweeting:

“As an observer, I think the Binance listing process is a bit broken. They announce, then list 4 hours later. The notice period is necessary, but in those 4 hours, the token prices go high on DEXes, and then people sell on CEX…”

The problem is compounded by concerns over potential information leaks. Market participants have pointed out that price movements often begin well before the official four-hour notice window, suggesting some traders may have early access to listing details.

As Andrey Nayman noted, “If you analyze the price and volume of the most recently listed tokens, you will notice a similar pattern: the movement often starts much earlier than four hours before the listing.”

Additionally, traders have begun treating Binance listings as shorting opportunities rather than bullish events. A common phrase circulating among crypto investors is:

“As soon as a new token contract goes live on Binance, just short it without hesitation.”

This shift reflects the growing belief that Binance listings now serve as exit liquidity for early investors rather than a fair price discovery mechanism.

Retail traders, often the last to gain access to these tokens, are frequently left holding the bag as large holders dump their positions almost immediately.

Inconsistent Listings Raise Red Flags

Adding to the controversy is the apparent inconsistency in Binance’s selection process.

Coin Hunter reviewed recent listings and found that many did not align with Binance’s own stated criteria, which emphasize strong tokenomics, product-market fit, and organic community growth. Yet projects with little to no track record—such as $TST—continue to get listed, while other well-established projects are left waiting.

The $TST listing is particularly concerning because it was not only fast-tracked but also listed on Binance Spot, while other meme coins were relegated to Perpetual Futures, a market known for relentless shorting pressure. It seems, however, not even that could save $TST from the 70% drawdown it is currently enjoying.

A Path Forward: How Binance Can Restore Confidence

Despite the criticism, Binance has the opportunity to reform its listing process and regain trust. Even CZ himself has proposed potential solutions, suggesting that centralized exchanges should take inspiration from decentralized exchanges to improve liquidity management and price stability. Some ideas include:

  • Simultaneous Listing with Liquidity Provision: Binance could provide substantial liquidity at launch to prevent extreme price volatility.

  • Incentivized Liquidity Programs: Encouraging users to add liquidity to trading pairs could help stabilize order books and prevent manipulation.

  • Integration with DEX Liquidity: Exploring cross-chain solutions could create a healthier price discovery process and reduce listing-related speculation.

Ultimately, Binance must evolve.

The space has changed, much of this due to Binance’s actions, and its current listing model is showing signs of failure. Without reform, Binance risks further alienating its user base and diminishing the value of its once-coveted listings.

Whether Binance can adapt and regain credibility remains to be seen, but it’s encouraging to see CZ speaking out about the very obvious problems.

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Daily Bites: Today’s Top Articles

Todays Markets

Ordinals

Looks like the tactical moaning from Friday and Saturday’s issues did the trick, with a strong green wave sweeping across most of the top 10 Ordinals today.

Quantum Cats and OMB both post around 12% gains, while Natcats climbs into the top 5 for the first time in a while after one dedicated cat enjoyer swept nearly a quarter of a Bitcoin’s worth of them.

CENTS is up over 100% today, possibly fueled by the news that Trump has ordered the discontinuation of new penny production.

Given the political and historical significance of the penny, this has likely sparked collector interest in CENTS, making it a play on scarcity and cultural relevance. We’ve seen similar narratives drive Ordinals in the past—whether this one has legs remains to be seen, but it’s catching attention today.

Runes (Bitcoin Memecoins)

Lo and behold, Runes are up on a day when Ordinals are too! Sensational stuff.

$DOG and $BDC are leading the pack with 14% and 15.5% gains, as speculation ramps up ahead of an X Space scheduled around the time this is being published.

BDC, being the leading cat token on BTC, is likely benefitting from that narrative. Meanwhile, if the rumors of $DOG getting listed on OKX are true, it might be one to watch next. Here’s the link to the Space:

Further down the list, it’s a mixed bag, but unsurprisingly, the long-term Runes play, Uncommon Goods, is sitting at 7th place.

The current cripplingly low transaction fees have made minting these a great bet over the past few weeks. The mempool is still between 1 and 2 sat/vB, so if you’re looking for a long-term speculative mint, there’s still time. This has been one of WhiteCoco’s alpha calls for a while now.

Finally, in 10th spot, yes—that’s yet another fake $DOG Rune surfacing. This time, they replaced the O’s in "Moon" with Q’s. The enemy class is not composed of impressive people.

Todays Opportunities

Giveaways

There is currently one raffle live, so join the Discord below and make sure you have notifications on so you don’t miss out!

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Nothing in this or any other ExtraOrdinal Daily publication should be construed as financial or investment advice.

We trust this ExtraOrdinal Daily provided you with the information, insight and opportunities needed to have an ExtraOrdinal day! If you have any questions, suggestions, or a desire to contribute, reach out in the ExtraOrdinals Discord!

See you tomorrow!