Binance Denies Profiting from Token Listings Amid Allegations by Limitless Labs CEO

Binance, the world’s largest cryptocurrency exchange, has denied claims that it profits from listing new tokens. The statement came after CJ Hetherington, CEO of Limitless Labs, shared what he called an alleged listing “offer” from Binance on X (formerly Twitter).

Hetherington claimed that Binance requested around 8% of Limitless’ potential token supply, along with other cash and token security deposits as part of its listing requirements. Limitless Labs, backed by Coinbase Ventures and the Base Ecosystem Fund, is developing prediction market, blockchain, and AI solutions.

In response, Binance issued a public statement rejecting the allegations and labeling them “false and defamatory.” The exchange also said it was considering legal action against Hetherington.

“CJ’s illegal and unauthorized disclosure of confidential communications with Binance has damaged the integrity of sensitive industry information,” Binance stated on X.

The company clarified that it does not charge listing fees and that security deposits, when required, are refundable within 1 to 2 years. Binance also denied any claims that its executives have dumped tokens after listings.

However, the controversy sparked broader discussion within the crypto community. Industry observers noted that indirect costs of listing on Binance often exist, with some projects allocating up to 7% of their token supply for promotional or liquidity-related activities linked to the listing process.

A trader using the handle 韭菜不红Leek claimed on Binance Square that Binance requires projects to airdrop 8% of their tokens to users as part of its listing terms. Meanwhile, Mike Dudas, founder of 6MV and former investor in The Block, said he had seen similar Binance token listing proposals in recent months. “Binance has been running the same playbook for years,” Dudas wrote, noting that he had not signed any nondisclosure agreement.

While The Block and other outlets have not independently verified either party’s claims, the situation highlights the ongoing lack of transparency surrounding token listing practices on major exchanges.

As of now, both Binance and Limitless Labs have not issued further statements.