Cryptocurrency market participants, traders, and investors are increasingly divided on the results of mass token listings on centralized exchanges (CEX).

As discussions about token listings on CEX deepen, some industry figures warn that listing standards are deteriorating. Meanwhile, others argue that an open listing approach will ultimately benefit the market.

Analysts Challenge CEX Mass Listings

Cryptocurrency analyst and Cryptoverse founder Benjamin Cowen shared concerns about the declining quality of tokens listed on major exchanges. He criticized exchanges for listing low-quality "shitcoins" while promoting long-term investment, emphasizing the hypocrisy in the cryptocurrency market.

"Some cryptocurrency exchanges are listing increasingly terrible coins. They emphasize fundamentals and long-term investment one day, and list the most useless garbage that no one has ever heard of the next day," he said.

Another analyst, Colin Tox Crypto, argued that the primary motivation for these listings is profit from transaction fees. Other voices in the debate suggested that exchanges list tokens based on trends and remove them when interest fades.

"They want trading volume and fees, list when popular and delist when it cools down. In this cycle, CEX is showing why DEX is the future," an X user mentioned.

This aligns with the delisting guidelines of the Binance exchange. According to BeInCrypto, this trading platform reviews the performance of listed trading pairs and removes tokens and trading pairs that do not meet liquidity and trading volume criteria.

Recent Binance listings including the BNB Chain meme coin JELLY have sparked criticism. In this context, cryptocurrency influencer Leonidas expressed dissatisfaction with Binance.

"Your listing team just listed four internal control meme coins that no one has heard of... I've watched you continue to list $10-20 million worth of garbage meme coins over the past year while ignoring the largest market cap meme coins with actual communities," the analyst lamented.

Others speculated that centralized exchanges might accumulate tokens before listing and sell them to retail investors.

Necessity of Centralized Exchange Mass Listings

Despite these criticisms, some experts argue that mass listings could benefit the market long-term. Jason Chen believes accelerating token listings will desensitize the market. In his view, this will remove speculative interest in new listings and create a more competitive trading environment.

"There will no longer be a listing effect, no premium, and everything will return to a free game state," Chen explained.

Changpeng Zhao (CZ), Binance's founder, agrees with this perspective, noting that coin listings should not impact price. Listings provide liquidity, enabling freer entry and exit, but can affect price in the short term.

However, according to CZ, this should be very short-term. Long-term, prices should be determined by project development. This also aligns with Binance's listing and delisting criteria, which analyze factors like team commitment, development activity level and quality, network, and smart contract stability.

"The DEX model is very good. All coins are listed, and people can choose for themselves," CZ added.

Cryptocurrency trader Paul Way supported this argument but warned against oversimplifying the relationship between listings and long-term evaluation. He also challenged CZ's view that coin listings on CEX like Binance do not impact long-term prices, arguing that listings enable freer trading, thereby influencing project "development" by shaping price trends.

Meanwhile, recent controversies like the Hyperliquid JELLY token incident highlight the growing gap between CEX and decentralized exchanges (DEX). BeInCrypto reported allegations of market manipulation, fueling skepticism about centralized exchange practices and sparking the CEX vs DEX cryptocurrency debate.

Critics argue these cases demonstrate DEX advantages. Token listings are unrestricted, and market forces determine valuation without centralized intervention.

Amid this ongoing debate, CZ explained that Coinbase's recent indefinite BNB futures listing was purely performance-based. It's also notable that Binance recently decided to include user participation in listing and delisting decisions, promoting democracy.

Exchanges have also adopted a secondary listing mechanism. Instead of listing new tokens only on centralized exchanges, they will support token launches on decentralized platforms using Binance Wallet.