Binance made an announcement this AM that has garnered significant attention throughout the crypto world. In a Twitter post two hours ago, CZ (Binance’s Founder and CEO) revealed that the firm would be fully transparent, going forward, with token listing fees and donate those fees to a charity yet to be named.
The crypto community generally responded with praise, even though a small minority of skeptics requested that Binance reveal past listing fees. That skepticism was generated by rumors surrounding listing fees that numbered in the millions up until a couple of months ago.
Here are some repsonses to Binance’s announcement:
“I very much agree with donating to charities, regardless of being it crypto related. Perhaps CZ setting an example in that way is good, him or Binance being an example for the crypto community in general (based on previous actions), is how I read it, and I can not agree on that.”
A positive response to the announcement:
“Great job by Binance and CZ here, yet if you read some of the comments in this tweet, you’d think they did something wrong. Some people are never satisfied.
Binance will not dictate how much projects have to charge, and there won’t be any minimum donation fee when listing a cryptocurrency. They also want to avoid giving the impression that larger donations will gain favor for projects, with Zhao saying in a press release, “A large donation does not guarantee or in any way influence the outcome of our listing review process”.
When asked if other players are expected to follow suit in providing transparency, Zhao was optimistic. He said:
“I certainly hope so. They copied us on many other things, this will be a good thing to copy. There is no competition in charity.”
A bit of a hint as to what charity all of those newly disclosed listing fees could go to may have been telegraphed just a few weeks ago.
Binance recently launched Blockchain Charity Foundation together with the UN, led by UN Ambassador of Goodwill, Helen Hai.
The goal of the project is to help the UN tackle the United Nations Sustainable Development Goals funding gap. Currently, the UN is struggling to raise the $2.5 trillion needed to help developing countries reach their investment goals. The BCF was set up to explore the potential of blockchain technology to help with this.
It wouldn’t surprise us if that becomes the default charity of record for Binance listing fees going forward; unless a specific project requests/negotiates an alternate charity that both parties agree upon.
Whatever your take on the move by Binance, and their past behavior with respect to listing fees, this is a step in the right direction and should prove a marker for other exchanges to do the same. If it turns into a trend, at a minimum, several charities and their causes stand to greatly benefit.