Binance Donates Alleged Multimillion Dollar Listing Fees To Charity In New Shake-Up
Cryptocurrency exchange Binance has appeared to end its controversial listing fee policy for new altcoins and plans to donate all funds received to charity.
Developers To ‘Propose’ New Fees
In a blog post on October 8, Binance said the change would take effect “immediately” and would also see developer teams themselves select how much to “pay” to list their coin following approval.
“Project teams will still propose the number they would like to provide for a ‘listing fee,’ or now more appropriately called a ‘donation,’” the post confirmed. “Binance will not dictate a number, nor is there a minimum required listing fee.”
The move comes several months after Bitcoinist reported on negative criticism focusing on Binance and CEO Zhao Changpeng after the developer of one altcoin claimed the exchange had requested a fee of 400 BTC ($2.6 million) to list his asset.
While both Zhao and other officials denied the claims, cryptocurrency community figures condemned both the alleged fees and Binance’s listing process more generally, arguing it went against the principles of decentralization the exchange said it upholds.
Bitcoin, Bitcoinist argued, would likely not make it through Binance’s listing process under current requirements.
Calls For Cross-Industry Standard
The blog post meanwhile placed emphasis on the decision as forming part of a broader push into charitable operations.
“This change will further push Binance’s charity initiatives and increase the use of blockchain for the greater good,” it continues, with further details about upcoming plans due “shortly.”
On Twitter, Zhao said he hoped other exchanges would adopt a voluntary “transparent” fee policy.
Hope others will follow. https://t.co/tBWvyAStd2
— CZ Binance (@cz_binance) October 8, 2018
While it is unclear how much Binance has made from listing fees, which appear shrouded in mystery and calculated on a case-by-case basis, overall profits continue to skyrocket, coming in at $200 million for Q2 2018.
Annual profits for this year are set to top $1 billion, Zhao told mainstream media in July.
What do you think about Binance’s listing fee change? Let us know in the comments below!
Images courtesy of Shutterstock, Twitter.