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%Binance founder Changpeng "CZ" Zhao has denied allegations that centralized exchanges require crypto projects to pay huge listing fees to get established. Zhao also explained that projects have other ways to get access to market exposure via decentralized platforms.

Zhao said no project has an obligation to pay listing fees, even if asked by exchanges. He emphasized listing is often merit and project quality based. According to him, decentralized finance provides alternatives for trading tokens in a decentralized manner that reduces dependence on centralized exchange (CEX) listings.

He further stated, "if your project is strong, exchanges will race to list your coin. If you have to beg an exchange to list, then... You need to ask yourself why, and who is providing value to whom."

The remarks followed reports that Binance charged as much as 10% of a token's supply as a listing fee. Zhao said exchanges are operated differently - some will list all their tokens to attract users while others will screen projects to maintain credibility. He said that the use of fees to charge or the requirement of airdrops as a mechanism can serve as a filter to prevent scams and keep users safe.

Zhao pointed to PancakeSwap (CRYPTO: $CAKE ) as an example of a successful platform that has no listing fees but high trading activity. He asserted that exchanges strive for a balance between inclusivity, safety, and profitability to preserve user trust and platform security.

Accusations of Unfair Listing Practices

Despite Zhao's clarification, a number of builders and investors have accused Binance of aggressive listing demands. Founders such as Moonrock Capital's Simon Dedic and 6th Man Ventures' Mike Dudas said Binance had been taking multimillion-dollar deposits and token allocations.

Dudas criticized Binance's model, saying that it imposed a "10% tax on innovators" and made it more difficult to launch tokens than traditional finance. Binance has denied these claims, saying they are "false and defamatory."

The controversy escalated when Binance was accused by Limitless founder CJ Hetherington of asking for both airdrops and fees during negotiations for the listing. The debate sparked the debate once again on justice and openness of centralized exchange practices.

In the backlash, decentralized exchanges (DEXs) such as Hyperliquid have become the focus of fee-free listing designs. The Hyperliquid enables token listing at standard HYPE gas costs and encourages a permissionless system amongst builders.

Despite its lower liquidity compared to Binance, the DEX model is attractive to developers who do not want to be dependent on centralized systems. The markets deployed by Hyperliquid demonstrate a transition to decentralized innovation, particularly in new projects that CEX restrictions would not hold.

The delisting controversy has impacted the reputation of Binance among some traders. In the previous week, the outflow registered at 21.75 billion, indicating a level of uncertainty among investors. Recent data also indicated that market sentiment was at a fear level of 34.

Analysts note that controversy over the listing fee may erode Binance's reputation during the current bull cycle. However, the platform continues to be a leader in terms of liquidity and trading volume, which is supported by its decentralized ecosystem through PancakeSwap and other affiliates.