Summary
CZ (Changpeng Zhao) recommends implementing the auto listing of tokens on centralized exchanges (CEXs).
The existing listing delay creates an advantage to insiders in their trading as may result into front-running.
Automation, just like DEXs (such as Uniswap), can establish a field.
CZ suggests that the activation of token listings should take place simultaneously with all users.
The concept is gaining prevalence as we progress with more and more stating the need to be open about crypto trading.
How CZ Believes Listings Have to Shift
Changpeng (CZ) Zhao, the founder and ex-CEO of Binance, is once again causing a change that rocks up the crypto scene, but this threat is to the mode of operations under centralized exchanges (CEXs). In one of his last posts in X (used to be Twitter) he demanded an automatic listing and stated:
They announce, and wait four hours to be added to the list. The heads-up is required, and in that period, the prices are pumped in DEXes, and then people dump the money on CEX.
Such a declaration will remind people about the discretion early birds (or insiders) now possess over the rest of the population – and it is what CZ wants to change.
The Present-day Issue: Front-Running and Delays
In most cases, when CEXs list a token, trading is not possible until 4 hours. Through that window:
- Insiders and bots will purchase tokens on DEXs cheaper.
- Then sell them to CEXs after the hype sets in and retail buy in.
Such latency results in the issue of front-running, which may be defined as a frequently occurring situation when some users receive an unfair advantage concerning trading before the rest of users. The result? Normal investors end up paying high prices before they can sell the investment when it becomes bankrupt after the hype.
The DEX Model: Quicked-equal Access
CZ claims that automated listing of tokens, as it occurs with decentralized exchanges such as Uniswap, would make these problems go away. A DEX:
- Everyone can add liquidity and thus list a token.
- The token is About trade immediately.
- No back room deals, No delays, No early bird benefits.
The implementation of such model into CEXs would help counter frauds with price maneuvering, enhance equity, and enrich trusticity on a larger scale.
Is Such a Change Acceptable by CEXs?
Although CZ has left the position of the CEO of Binance, his authority is still potent. The need of his DEX-style listings can be linked to the industry-wide demands of:
- Decentralization
- Transparency
- User protection
When major exchanges follow such strategy, we could experience a paradigm change in the way crypto trading platforms function, staged on transparency of decision-making to automatic code.
In addition, it would remove gatekeeping and would make the power imbalance between retail traders and insiders, which critics frequently mention when contrasting CEXs with DEXs, unnecessary.
Wrap Up: Toward a Fairest Crypto Future
In a maturing crypto world, the clamors of transparency, fair way of doing things and equal opportunity are increasingly being heard. The suggestion by CZ may be the dawn of a new era but this time around, an era where token listing will be an automated process and will be impartial and open to all on a first day.
Assuming it is done correctly, automated token listings on CEXs may become the game-changer closing the door on front-runners and opening the door to regular people to get a fair chance once.