Separate reporting reveals token supply negotiations, Binance’s USD1 concentration, and commercial links involving WLFI promotions and stablecoin activity.
CZ, the former Binance CEO, believes investors are unfairly judging centralized exchanges for listing memecoins that don’t perform well, while not extending the same criticism to decentralized platforms.
In response to a debate about token listings on social platform X, Zhao questioned why the crypto community praises DEXs for listing tokens from several projects, while bashing centralized venues for doing the same.
“DEX listing all tokens is good. CEX listing all tokens is bad?” he asked, “I believe exchanges should provide access to everything. Well, this line will certainly get some heat.” He also mentioned that every centralized exchange selects what token to list using “their own framework.”
Zhao’s comments were responding to a post from Benjamin Cowen, the founder of the quantitative market analysis platform Into The CryptoVerse. Cowen argued that exchanges damage the credibility of the whole market by promoting speculative tokens.
“Crypto exchanges could make the industry seem more legitimate by not constantly listing dogshit memecoins on their platform to take advantage of short-term retail interest. If we don’t respect ourselves, how can we expect others to respect us?” he surmised.
While decentralized exchanges do not have “gatekeepers” to approve or disapprove tokens for trading, centralized exchanges like Binance have screening and compliance checks. That said, some trading platforms are allegedly paid by projects to bypass the checks.
“It’s not good to list all tokens, but it’s also not good to list nothing; you have to make controlled listings,” said one X user to Zhao, who then admitted there’s a balance that exists for most centralized venues.
“Listing all tokens have, among other problems, security issues (like bad smart contracts). But it doesn’t mean one has to buy every token listed,” the ex-Binance CEO replied.
A separate commenter proposed pairing access with explicit risk labeling to uphold a platform’s transparency, and would make the investor responsible for their token purchases. Yet, some naysayers accused major exchanges of promoting speculative assets with no utility.
“Dude, you’re representing the world’s largest crypto exchange, and you’re the founder. And there are more utility real projects out there. Stop defending shit memes. Let them trade on DEXes. Major exchanges promoting memes and dex listing memes are way more different,” a Crypto Twitter member bashed CZ.
Zhao and Binance have been party to weeks of accusations involving illicit profits, even though the exchange insists it does not profit from token listings and disputes the label “listing fees.” According to some founders looking to list their projects on the platform, Binance requests a percentage of tokens in exchange.
Although one source at a listed project said they provided no token supply, another said they agreed to allocate 3.5% of tokens for airdrops and marketing.
As reported by Cryptopolitan, Binance’s business with President Trump’s family’s DeFi company, World Liberty Financial, has raised eyebrows on social media. Arkham Intelligence’s tracking of WLFI’s assets shows that Binance and its users control about 87% of USD1 in circulation, or $4.7 billion of a $5.4 billion supply.
Binance is barred from serving US customers under its 2023 settlement with the Treasury Department. If restrictions are followed, most USD1 held in Binance wallets belongs to non-US users.
However, a Trump-affiliated LLC owns 38% of World Liberty Financial. The company earns revenue by investing dollars backing USD1 in assets such as US Treasurys and keeping the interest, currently around 3.6%.
In late January 2026, the exchange ran a campaign tied to USD1 that included a $40 million distribution of WLFI tokens, incentivizing users to hold and transact with the stablecoin. WLF subsequently transferred the tokens to Binance to deepen collaborative ties between the two firms.
