Binance Shifts Its Fees Policy Amid Abuse Accusations

The world’s leading cryptocurrency exchange, Binance, is in the news again. This time, Binance is in the news for the right reasons. In an October 8th post on its blog, Binance disclosed that it would channel all the funds made through the listing of coins and tokens to charity. While the exchange has done a good job at keeping its listing fees a top secret, Binance stated that it would relax the rule. Basically, the exchange, which controls the majority of global cryptocurrency transactions, would start publishing its listing fees.

Disclosing Listing Fees – Blockchain Charity Foundation

According to the post available on Medium, Binance reaffirmed its commitment to disclosing its listing fees and giving ALL the proceeds to charity. In the post, it noted that the funds would move through Blockchain Charity Foundation. A close look at its background shows that Blockchain Charity Foundation is a nonprofit that Binance established. The reason for its establishment is to develop and advance global blockchain-oriented philanthropy. Indeed, to consolidate on the sweeping changes, Binance noted that project owners will propose a listing fee of their choice. Afterward, the amount will be donated to its Blockchain Charity Foundation.

Arriving at Listing Fees

The statement went ahead to make the new policy as clear as day. Clarifying, it stated that to arrive at a particular listing fee, a project team will have to propose how much it is willing to offer. Also, Binance will neither set a minimum listing fee nor dictate listing fees to new project owners. That’s not all; the size of donation would not affect the outcome of the listing, it added. The statement noted that the reason for the new measure is to encourage the use of blockchain technology for the greater good.

Is This Binance’s Best Definition of “Damage Control”?

However, critics strongly believe that Binance is taking this step as damage control. Recall that Binance has faced countless accusations of charging as high as $2.6M USD in listing fees. But it has come out publicly to dispel such claims, explaining that project owners dictate how much they can offer. On the other hand, to show some credence to such claims, Christopher Franko, the creator of ERC-20 protocol-compatible blockchain, Expanse, released some backing data. Shockingly, Franko showed that Binance once demanded that he pay a whopping sum of 400 BTC to have his project listed.

Unsurprisingly, Binance rose to its defense. This time, CEO Changpeng Zhao issued a statement. He noted that Franko’s materials were doctored. Explaining further, the chief executive noted that the factor that determines whether they would catalog a project or not is the project quality.

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