Global crypto exchange Binance stated on Tuesday that it “does not profit” from its token listing process, refuting allegations made earlier in the day by CJ Hetherington, CEO of Limitless Labs, a blockchain and AI development firm. The argument erupted in the open after Hetherington published what he pretended was a “proposal” from Binance, indicating that apart from money and token security deposits, the exchange had asked for about 8% of Limitless’ possible token supply.
Afterward, Binance reacted with a tweet on X (formerly Twitter), doubting the veracity of these claims made by Hetherington and labeling them as “false and defamatory.” The organization said that it will seek legal redress against Mr. Hetherington for the unauthorized disclosure of their confidential communications. Binance emphasized that the leaked documents “have harmed the integrity of the most sensitive and confidential industry information,” pointing out that numerous charges for listing are refundable and are not a source of revenue.
In a statement, Binance mentioned that the exchange does not impose direct fees for listings and that any cash or token security deposits are usually refundable within one or two years. Besides, the company refuted the allegations that to promote sales, certain executives “dump tokens after the listings.”
Though Binance reacted to the issue just to make their position clear, The Block reported that they couldn’t independently verify the arguments put forward either by Hetherington or Binance. However, the insiders of the industry have been suggesting for a long time that the indirect costs related to listing on major exchanges might sometimes constitute 7–8% of the project’s total token supply, depending on the size and the reputation of the platform.
After Binance’s denial, a few industry witnesses took their turn to speak. A trader using the name 韭菜不红Leek was writing on Binance Square that Binance imposes the condition on the projects that they must distribute 8% of their tokens to users by way of airdrops and similar activities.
On the other hand, Mike Dudas, founder of 6MV and an early The Block investor, was in line with Hetherington’s arguments. Dudas tweeted that he had direct exposure to the proposals for the token generation event (TGE) listing, similar to what Binance suggested in the last few months, and that he was not under any non-disclosure agreement.
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