Exchange News : Binance Denies Profiting from Token Listings, Sparks Legal Threat

Binance refutes claims to accrue profits through posting of tokens, refers to allegations as false and defamatory in the face of legal threats by Limitless Labs CEO.

The exchange elucidates that listing deposits are refundable and retains the right to legal action. The biggest cryptocurrency exchange in the world, Binance, has publicly denied that it gained profits through its token listing process. 

It was clarified on X (previously Twitter) in response to the allegations made by CJ Hetherington, CEO of Coinbase-supported Limitless Labs, who posted what he referred to as listing requirements by Binance, including sizable token allocations and cash deposits.

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The post by Hetherington alleged that Binance was requesting approximately 8% of the total token supply of Limitless Labs, as well as large cash and token security deposits.

 Limitless Labs, which has developed blockchain and artificial intelligence, has Coinbase Ventures and the Base Ecosystem Fund among its investors.

Surprising Legal Threats and Confidential Leaks

Binance denied such claims, describing them as false and defamatory, and noting shock at Hetherington revealing private communications without Binance’s permission. 

The exchange claimed that such leaks have tarnished the integrity of the industry and retained the right to initiate legal measures.

Binance stressed that it does not collect the classic listing fees but adds that security deposits created by projects can be returned within one to two years under specific conditions. The exchange also denied the claim that its executives have sold tokens in listed projects.

The controversy has ignited a new debate in the crypto community, with some traders and insiders on the social forum of Binance affirming that other listing proposals involve similar conditions, making project owners distribute approximately 8 percent of their tokens via airdrops and other Binance-sanctioned events.

Mike Dudas, the founder of 6MV, publicly verified Binance token listing statements similar to those made by Hetherington, suggesting that Binance has been using this playbook all year long.

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Indirect Costs and Industry Speculation

Though Binance denies directly profiting on listing, market participants estimate the indirect expense, such as token distributions and marketing requirements, as around 7 percent of the issue of tokens of a project.

Certain individuals consider such terms a compromise in order to get to the massive user base of Binance.

This move by Binance to cast these allegations into doubt shows that there is a tension behind the scenes between crypto efforts and exchanges in terms of transparency and fair market practices.

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