Executive Summary
Base founder Jesse Pollak publicly criticized a major centralized exchange for charging substantial token listing fees, advocating for permissionless on-chain alternatives, thus intensifying a philosophical debate on crypto ecosystem development.
The Event in Detail
Jesse Pollak, co-founder of the Base network, openly criticized certain centralized exchanges (CEXs), implicitly referencing Binance, for imposing high listing fees on new token projects. Pollak stated that some CEXs demand as much as 9% of a project's total token supply for listing, with many others charging several percentage points. He characterized this practice as "extremely harmful" and indicative of an "industry monopoly," urging a shift towards "permissionless, on-chain coin listing mechanisms."
Binance's market strategy, particularly its Binance Alpha program, has been highlighted as a system that prioritizes short-term gains over sustainable community development. The program, intended to promote early-stage crypto projects, has been criticized for fostering speculative hype rather than organic growth. Data indicates that 41% of tokens listed through Binance Alpha crash post-listing, largely due to "mercenary users" who engage in rapid buy-and-sell cycles. For instance, the RDAC token experienced a 50% price drop shortly after its Binance Alpha debut. Critics argue that Binance Alpha often sidelines early community contributors, restructures airdrops to favor Binance wallet users, and exhibits centralized control that undermines the decentralized ethos of Web3.
In contrast, Base and Coinbase advocate for an "on-chain-first" approach. This philosophy encourages projects to establish real user bases and holders directly on-chain before seeking CEX distribution, emphasizing long-term value creation and ecosystem building. Pollak explicitly recommended opting for permissionless listings on platforms like AerodromeFi on Base, followed by leveraging tools such as Spindl to target high-value holders with minimal expenditure.
Financial Mechanics
The core financial instrument under scrutiny is the token listing fee charged by CEXs, which can range from 2% to 9% of a project's total token supply. This fee represents a direct cost extraction from projects, significantly impacting their initial capital and token distribution. Such high fees can dilute token value and diminish returns for early investors, affecting long-term price stability. The CEX model often creates short-term arbitrage opportunities, particularly for advanced traders on decentralized exchanges (DEXs), who exploit the typical price surge before a CEX listing announcement, leading to selling pressure post-listing. Binance's former CEO, Changpeng Zhao, acknowledged that "the Binance listing process is a bit broken" due to these arbitrage dynamics.
Conversely, permissionless on-chain listings, as championed by Base, eliminate upfront listing costs. This approach aims to foster organic liquidity pools and allows projects to utilize resources more effectively for targeted holder acquisition through analytics and marketing tools like Spindl. This strategy seeks to replace large listing fees with an on-chain-first focus, potentially reducing token dilution and enhancing liquidity within the DeFi ecosystem.
Business Strategy & Market Positioning
The debate highlights a strategic divergence in fostering crypto innovation. Binance, through initiatives like the $1 billion BNB Builder Fund by YZi Labs (formerly Binance Labs), aims to accelerate development within the BNB Chain ecosystem across various sectors including DeFi, AI, and Web3 infrastructure. This represents a significant investment in incubating projects and maintaining its market dominance through a centralized, curated approach.
Coinbase, through its Base network, positions itself differently. It is actively moving towards an "Everything Exchange" model by enabling direct trading for all tokens built on Base, effectively removing traditional listing barriers. This strategy aims to democratize liquidity for on-chain projects and expose its large user base to early-stage tokens. The potential introduction of a Base token, with community input on its design and distribution, further underscores a strategy focused on ecosystem value creation and user engagement, potentially leveraging Coinbase's regulatory expertise for institutional adoption. This approach is designed to solve the "revenue-growth paradox" faced by Layer-2s by creating inherent utility and demand for the Base token, differentiating it from other L2 tokens like ARB and OP.
Broader Market Implications
This philosophical conflict between CEXs and on-chain ecosystems could significantly impact the Web3 landscape. In the short term, competition for project listings and developer attention may intensify. Long term, platforms may be compelled to re-evaluate their incentive structures, potentially leading to new models for project incubation and listing. This debate influences the adoption trajectory of different Layer-1s and Layer-2s based on their perceived philosophies of "exit" versus "building."
The tension also underscores the ongoing dichotomy between efficiency and ideology in crypto. While CEXs offer advantages in liquidity, fiat onboarding, and user experience, DEXs prioritize censorship resistance, transparency, and align with blockchain's decentralized ethos. The emergence of hybrid models, where CEXs integrate decentralized features and DEXs adopt off-chain order books, suggests a convergence, yet fundamental trade-offs persist. The outcome of this debate will shape investor sentiment, corporate adoption trends, and the overall trajectory of decentralization within the digital asset market.
Jesse Pollak's concern is that Binance's market dominance and incentive structures could undermine the attractiveness and value of on-chain innovation, diverting projects from long-term ecosystem building on platforms like Base. Critics of the Binance Alpha program argue that it makes "Web3 a space of greed, not fairness," by promoting a centralized game where "whales win and early adopters lose." The shift towards permissionless listings, as noted by Pollak, "could significantly impact token liquidity, trading volumes, and overall market dynamics for new crypto projects," fostering a more equitable and sustainable development environment.
source:[1] Behind Base's criticism of Binance's listing fees: Eastern 'exit mechanism' vs. Western on-chain faith | PANews (https://www.panewslab.com/zh/articles/3ea83db ...)[2] Base Lianchuang: A certain CEX's listing fee is as high as 9% of the total token supply, calling for permissionless on-chain listings | PANews (https://vertexaisearch.cloud.google.com/groun ...)[3] Why Binance Alpha is essentially destroying projects? | by Alpha Talks - Medium (https://vertexaisearch.cloud.google.com/groun ...)
Edgen Crypto·Oct 13 2025, 06:06
