- Former CEO of Biannce Changepeng ‘CZ’ Zhao says CEX listing process is broken.
- He believes CEXs should list tokens automatically like DEXs.
- The notice period before a CEX listing leads to a DEX pump and a CEX dump after listing.
Former CEO of Binance, one of the most popular and reputed centralized crypto community exchanges in the word, admits to a fault in the way centralized exchanges (CEXs) work. To highlight, Binance’s former CEO, Changpeng ‘CZ’ Zhao, says that much like decentralized exchanges (DEXs), CEXs should list new tokens automatically.
CZ Says CEX Listing Process is Broken
As we can see from the post above, CZ believes CEXs should list almost everything automatically like DEXs do. In the crypto market, cryptocurrencies make their debut for trading of DEXs or CEXs but while the former lists tokens automatically, the latter does now. In fact, CZ admits that they way CEXs list tokens may be broken.
CEXs Should List Automatically Like DEXs
CZ compares this process of CEXs listing tokens particularly with Binance. He says while he is not running a CEX anymore, he believes the Binance listing process to be a little broken. In detail, CEXs usually make an announcement before listing the new token that will be available for trading.
This announcement CZ says is made 4 hours before the token is listed. In this time, the price of the token pumps strongly in DEXs to hit high targets on to be sold on CEXs to see a drop in price once again. This gives DEX traders an advantage to make quick profits. CZ laments that while this notice period is necessary, it still creates a gap in a system that could be better.
