Crypto exchange Binance has denied allegations by Limitless Labs

Source Cryptopolitan

Binance refuted claims by Limitless Labs CEO CJ Hetherington that it was profiting from token listings. The exchange discredited CJ’s allegations as false and defamatory and threatened to pursue legal action against the executive for his unauthorized disclosure of confidential communications with Binance officials.

Binance acknowledged that it was aware of CJ’s claims and clarified that it does not charge any fees for token listings. It also emphasized that allegations of token dumping by the company and its founders are untrue and unsubstantiated. The exchange stated that it was surprised by CJ’s revelation of sensitive information, which compromised the integrity of what the crypto community considers confidential. 

The exchange explained that cash or token security deposits are refundable in one to two years. It also asserted that the token allocations are for its users and security deposits are for their protection. The exchange claimed that CJ’s allegations are designed to mislead the community and attack the integrity of its listing process. 

CJ shares listing offer from Binance

The Limitless Labs boss claimed that Binance requires alpha listings to set aside 1% of their token supply for an airdrop on the first day. An additional 3% is expected to be airdropped in the first six months, and 1% is for marketing at Binance’s discretion. 

CJ also disclosed that the exchange requires project owners to provide 100% of the $1M+ TVL for the token pool on Pancake Swap. He revealed that Binance requested a $250,000 security deposit and $2 million worth of BNB tokens as collateral for a spot listing. 

The CEO further stated that Binance required him to reserve 3% of his tokens for the BNB HODLer program. He also claimed that the exchange wanted $200,000 worth of tokens at the MFN price for its affiliate marketers. Ultimately, CJ was required to distribute 8% of his project’s token supply to Binance users through airdrops and other activities.

In support of CJ’s allegations, 6MV founder Mike Dudas confirmed that he had seen Binance’s listing proposals in the past month, which looked exactly like CJ’s. Dudas said he was not required to sign an NDA, so he could not be sued for publicly discussing the details. He claimed that Binance has been running the same playbook for years.

Peng criticizes CJ for being immature

Crypto Analyst and former Head of Collectibles at TVM Ventures, Howard Peng, clapped at CJ, calling him immature for his unwarranted rant. He said the Limitless boss has no principles and wondered why he casually spoke about Binance’s terms as if it were not a big deal.

Peng asked CJ to refuse the deal and move on if he did not like the offer. He then suggested that the disgruntled boss try his luck getting listed on Kraken or Coinbase and see how that works for him. 

Responding to CJ’s claim that Base was better, the analyst emphasized that Base-related projects are launched in a disorganized way. He pointed out that most of the projects listed on Base dropped by as much as 90% after listing, leaving him wondering what the point of bringing up the network was. 

“Don’t overestimate yourself — if it weren’t for @KaitoAI Launchpad’s oversubscribed funding, do you really think your product is that great? Have you even tried using your own product?”

Howard Peng, Crypto Analyst

Peng also believes that Coinbase listings have lost their retail appeal and that some listings have no trading volume. He believes that it makes no big difference whether an exchange has one more project or one less project. However, he clarified that he was not representing Binance in his personal views.

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