Binance claims it ‘does not profit’ from its token listing process, calls allegations ‘false and defamatory’

The world’s largest crypto exchange, Binance, claimed that it “does not profit” from its token listing process, according to a Tuesday post on X.

The claim was made in response to CJ Hetherington, CEO of Limitless Labs, a prediction market, blockchain, and AI development studio. Earlier on Tuesday, Hetherington posted an alleged “offer” from Binance claiming the exchange was requesting about 8% of Limitless’ potential token supply, as well as other cash and token security deposits.

Of note, Limitless has received backing from Coinbase Ventures as well as the Base Ecosystem Fund.

In response to Hetherington, Binance said they were “aware” of the founder’s claims, calling them “false and defamatory” and reserving the right to pursue legal action.

“We are also surprised by CJ’s illegal and unauthorised disclosure of confidential communications with Binance,” the exchange said on X. “These publications have damaged the integrity of what the industry and community clearly understands and knows to be sensitive and confidential information.”

Binance also clarified it does not charge listing fees and that any cash and token security deposits are typically refundable on a “1-2 years timeframe.” The exchange also said Binance executives have not “dumped” tokens.

While The Block cannot independently confirm nor deny Binance or Hetherington’s claims, it is commonly said that there are indirect costs to listing on the world’s largest crypto exchange, sometimes totaling upwards of 7% of a project’s token supply. Neither Binance nor Hetherington responded to queries at press time.

“Binance requires projects to distribute 8% of their token supply to Binance users through airdrops and other activities,” a trader by the name of 韭菜不红Leek wrote in a post on Binance Square.

“i can confirm that i’ve seen binance tge listing proposals of the EXACT same nature of cj’s at limitless in the past month,” Mike Dudas, founder of 6MV and former backer of The Block, wrote on X. “and i signed no nda so can’t be legally fudded out of talking about it. binance been running the same playbook for years.”