Binance’s Yi He Reveals Token Listing Criteria Amid TST Token Volatility

Binance co-founder Yi He has clarified the exchange's token listing process following the Test (TST) token’s dramatic price fluctuations. TST, initially part of a BNB Chain tutorial, surged to a $489 million market cap before dropping over 50% to $192 million.

Yi He emphasized that Binance prioritizes a token’s return on investment (ROI), measuring its first-day trading performance against quarterly trends on other centralized exchanges (CEXs). Additionally, Binance considers a project’s ability to innovate and attract new blockchain users. A strong market presence on other major platforms and compelling technology are also crucial factors to prevent Binance from losing market share.

The discussion on Binance’s listing process follows comments from former CEO Changpeng Zhao, who acknowledged potential issues. He noted that decentralized exchange (DEX) traders often exploit arbitrage opportunities, leading to post-listing price drops. Many traders buy tokens before their CEX listing and sell once trading begins, applying downward pressure.

Binance enforces strict compliance measures to prevent misconduct. Internal investigations have uncovered 120 cases of wrongdoing, leading to 60 employee terminations. While insider trading was minimal, issues such as bribery and fund misappropriation were detected.

The TST token controversy stemmed from its unexpected popularity after appearing in a tutorial. Influencer-driven hype, particularly in China, fueled its rapid valuation surge before the price correction. Despite the turbulence, Binance remains committed to transparency and strict evaluation for token listings.