Binance announced that as of today the company will make all listing fees transparent. In addition, 100% of fees will be donated to charity.
The move is likely to generate a fair amount of attention for the world's largest cryptocurrency exchange by trading volume. Previously, listing fees on Binance - the cost of listing a cryptocurrency in their exchange - have varied based on a number of factors such as the type of token and expected daily volume.
The move is not without some controversy. Binance was rumored to charge astronomical figures for tokens to be listed on the exchange. Changpeng Zhao, the CEO of Binance, refuted these rumors as baseless.
Zhao told CCN:
“There were so much incorrect data, rumors and FUD about listing fees. We care about our community and want to address this once and for all.”
When asked if Binance’s move towards greater transparency was driven by the earlier controversy, Zhao answered in the affirmative. “Yes, partially. We never charged 400 BTC for any project. That was a purely made up number,” he said.
Now, cryptocurrency projects will be able to decide what kind of fee they want to pay. In essence, this fee will be a donation to charity through Binance. The exchange will then disclose the fee to the public via their charity initiative, the Blockchain Charity Foundation.
“This will be disclosed in a subsequent Binance Charity Foundation press release. We are discussing with a few large donors at the moment. We don’t want to release a partial list just yet,” Zhao said.
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.
“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.”
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.
One of the next important steps in this process is the meeting of Binance and the BCF, at the Blockchains for Sustainable Development forum on October 24th in Geneva. The forum aims to unite various blockchain thought leaders with philanthropists and heads of state, with the goal of discussing how blockchain can be used in future for public good.
Featured image from Shutterstock.
Last modified (UTC): October 8, 2018 1:26 PM