Limitless Labs CEO CJ Hetherington has shaken the crypto market again by publicly accusing Binance of demanding many project tokens and hefty deposits in exchange for a listing.
The allegations, rebuttals, and heated follow-up discussions have reignited public skepticism toward the transparency of centralized exchanges (CEXs). Beneath the noise lies a deeper narrative about power, trust, and the thin line between collaboration and coercion in today’s crypto landscape.
Binance Listing Allegations
The controversy began when Hetherington revealed what he claimed to be Binance’s listing requirements—allegedly including token allocations and large upfront deposits. Comparing these terms with Coinbase’s approach, CJ highlighted a stark contrast between the two global leaders.
Binance swiftly denied all allegations, calling them “false and defamatory.” The exchange asserted that it does not profit from listing fees or require founders to sell tokens. Moreover, Binance accused CJ of breaching his NDA, hinting at potential legal consequences.
While the exact agreement between Binance and Limitless remains unclear, Mirror Tang mocked CJ’s leaks as “unstructured and boastful,” claiming they violated NDA terms and failed to reveal anything substantial. Meanwhile, other users criticized Binance’s alleged legal intimidation tactics, interpreting them as a sign that the exchange is “losing its grip.”
“It’s the beginning of the end for them. They’re losing their grip—everyone can see it now, including themselves,” one user commented.
This is not the first time Binance has been accused of charging steep fees or demanding token allocations in exchange for listings. Some community members have even claimed that Binance is “extorting projects” for listings.
Crypto investor Mike Dudas also alleged that Binance demanded nearly 10% of the total token supply from multiple projects for listing and token generation events. There was another user who confirmed being told similar conditions:
“Don’t lie. I was told $1 million worth of tokens for airdrop and $1 million for trading comp—and that wouldn’t even guarantee a listing, just the first step for Binance Alpha.”
Binance has also been hit by several issues recently. The exchange had to compensate users for the sudden drop in token prices.
Inherent Conflicts of Interest
A user on X compiled six alleged Binance listing scandals from 2024 to 2025. While Binance denied all of them, the patterns in the founder’s allegations and post-listing price declines suggest something. They disclose potential conflicts of interest in the exchange’s revenue models. This incident highlights two critical issues within the current exchange model.
First, the CEX listing process can create inherent conflicts of interest. Requiring token allocations for “marketing” managed by the exchange risks diluting supply, exposing retail investors to volatility, while exchanges profit from trading fees and free tokens.
Second, the lack of transparency in listing negotiations makes it nearly impossible for investors to assess projects equally. This opacity erodes trust in Binance and centralized exchanges overall—structures that have long been criticized for their black-box operations.
If these allegations hold weight, the real consequence will be a crisis of confidence. The crypto industry is already shifting toward on-chain price discovery and DEX integration, as many believe decentralization is the only way to ensure fairness.
Wake-Up Call for CEXs
In that context, Uniswap founder Hayden Adams shared that the DEX and AMM have guaranteed free listing, exchange, and liquidity for every asset.
“Decentralized exchanges (DEX) and automated market makers (AMMs) are now able to provide free listing, trading, and liquidity support for any asset. If a project chooses to pay high listing fees to a CEX, its real purpose is more for marketing promotion rather than a necessary demand at the market structure level. The development of DEX and AMMs allows anyone to freely create markets, and we are proud to play a role in achieving this goal.” Adams shared.
Regardless of the outcome, this Binance FUD Listing saga serves as a wake-up call for emerging projects. They should negotiate transparent terms, diversify listings across CEXs and DEXs, and protect their tokenomics from power imbalances. For the broader community, it reminds us that genuine trust in crypto lies on-chain. There, code, not corporations, determines the rules.
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