Coinbase, one of the largest cryptocurrency exchanges in the world, is under scrutiny after some prominent crypto figures rejected Coinbase CEO Brian Armstrong's statement that the company's asset listing service is free.
Armstrong's statement regarding free digital asset listings on Coinbase drew the attention of many crypto users, including Justin Sun, who founded the TRON network. Even through early Tuesday, some crypto users and crypto projects are discussing whether or not Armstrong's statements are true.
'Simply Not True': Sun
Sun, who built up a name for himself in the vast blockchain industry through his work on TRON, revealed that Binance, a leading crypto exchange founded by Changpeng "CZ" Zhao, "charged us $0."
On the other hand, "Coinbase required us to pay 500 million TRX (worth $80 million) and demanded a $250 million BTC (Bitcoin) deposit in Coinbase custody to boost their performance."
Sun emphasized that while he has lots of respect for Armstrong, his statement was "simply not true." Pointsville founder Gabor Gurbacs said the amount Coinbase demanded from TRON to list its native token "doesn't seem market standard."
Notably, even 0xSonicLabs co-founder Andre Cronje had the same revelation. He said Binance didn't charge them anything for a listing, while Coinbase asked for $300 million, $50 million, $30 million, and "more recently," $60 million. Coinbase has yet to respond to Sun and Cronje's statements.
Kaspa Kii Demands Listing Transparency
Kaspa Industrial Initiative (Kaspa Kii), the foundation dedicated to promoting the Kaspa (KAS) token, on Monday night published an open letter to Coinbase, demanding "for transparency and fair listing practices for Kaspa (KAS) on Coinbase."
The foundation pointed out how Armstrong's claim on free listings contradicted public reports, "raising serious questions about potential material misrepresentations under securities laws."
Kaspa Kii also revealed that it repeatedly attempted to engage with Coinbase for a KAS listing but has not received a response as of Monday night. It urged Coinbase to improve its Asset Hub process "to be genuinely inclusive of all legitimate cryptocurrency projects."
Ahead of Kaspa Kii's open letter, Kaspa's Global Ambassador, Luke, called out Armstrong for directing token listing seekers to an "outdated" link. "How should people navigate this overly complicated process if you can't even provide the correct URL in your knowledge base?" Luke wrote.
PundiX CEO Backs Armstrong
While many crypto users are outraged over the revelations, PundiX CEO and co-founder Zac Cheah said in the case of the PUNDIX and FX tokens' listing, Coinbase didn't charge any listing fees "nor asked for security deposits."
One commenter said "it's all about the product," seemingly suggesting that projects asked for security deposits or listing fees have had problems with their tokens.
Coinbase did not immediately respond to International Business Times' request for comments.
