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A wave of criticism from top crypto founders challenges Coinbase Inc’s claim of “free” asset listings. Justin Sun, founder of Tron, and Andre Cronje, co-founder of Sonic Labs, have raised accusations that Coinbase’s listing process comes with hidden costs.
This debate adds fuel to the long-standing controversy over exchange fees and ignites new discussions on the financial pressures facing emerging projects in the crypto space.
The Controversy Surrounding the Coinbase’s “Earn” Program
As mentioned earlier, industry leaders are taking the spotlight, alleging Coinbase imposes hefty listing fees for listings disguised as standard procedures.
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These claims directly contradict previous statements from Coinbase’s CEO, Brian Armstrong, who has repeatedly assured the community that listings are free.
In an X post, Luke Youngblood, Coinbase’s former employee, defended the exchange’s practices. He stated that Coinbase has never charged listing fees for assets. He suggested that Andre Cronje might have been misled by fake listing agents rather than facing legitimate charges from Coinbase.
In response, Cronje noted that Coinbase might categorize certain charges as “Earn fees” instead of listing fees. Still, he viewed these as costs associated with getting listed. Youngblood clarified that the “Earn” program is an optional marketing initiative a different team runs.
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He emphasized that the Earn program does not influence the listing approval process. Thus, participating in the Earn program does not affect whether an asset will be listed on Coinbase.
Binance’s Attraction: A Different Approach to Listings
Sun took the conversation further by alleging that Coinbase requested $80 million in Tron’s TRX and a $250 million Bitcoin deposit in Coinbase Custody. These shocking claims paint a different picture of the exchange’s practices.
This high-stakes requirement contradicts Coinbase’s publicly free listing policy and highlights ongoing friction between the projects and exchanges.
In stark contrast to Coinbase’s alleged practices, Sun and Cronje revealed that Binance Exchange has offered them free listings, positioning itself as a more accessible alternative.
However, Simon Dedic, CEO of Moonrock Capital, warned that while Binance may seem generous, projects might still face pressures to pay for visibility in a competitive market.
Arthur Hayes, the co-founder of BitMEX, added fuel to the fire. He noted that many projects feel compelled to secure a listing on Binance to succeed.
According to Hayes, this dependency empowers Binance to set high fees, enabling it to demand high listing fees directly or indirectly.
Crypto Community Calls Coinbase for Transparency
In response to these growing concerns, Armstrong reiterated the platform’s commitment to free listings, pointing to previous blog posts that outlined the process.
However, the backlash from founders has amplified calls for greater transparency and accountability within the exchange. This comes as many industry participants share their differing experiences, fueling community skepticism.
