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Some crypto projects pay as much as 8% of their total token supply for exchange listings, only to later dump on retail investors.
This was what CJ Hetherington, CEO of blockchain-based research and development company Limitless Labs, revealed during the Unchained webcast, as he called for decentralization and transparency in the crypto industry.
Is Retail the Exit Liquidity?
Speaking at an episode of Unchained, Hetherington and Nick Tomaino, founder of venture capital firm 1confirmation, discussed Binance’s alleged practice of demanding up to 8% of a project’s token supply for listings and the fear among founders to speak out.
During the discussion, Hetherington condemned projects paying 8% of token supply for listings, calling it unsustainable and harmful to investors.
“Sometimes the truth about a token’s supply is not in the published tokenomics sheet.”
CJ Hetherington, Chief Executive Officer, Limitless Labs
Photo from LinkedIn
Hetherington highlighted a “gray area” in supply distribution practices. He explained that such arrangements are unsustainable for most networks and often result in financial losses for community members who believe in the project’s long-term potential.
“Ultimately, they are like the exit liquidity, and they are the ones getting dumped on. And so, that is actually why we see a lot of this kind of listing fee structure actually being accepted because people are not playing long-term games. People are out for a kind of very short-term extraction, dumping on retail. And there are actually a lot of bad actors that I am calling out here.”
CJ Hetherington, Chief Executive Officer, Limitless Labs
He also noted that this listing-fee structure persists because some participants in the industry prioritize profit over transparency and ethics. Tomaino agreed to this, arguing that transparency divides the industry into two groups: those advocating for long-term integrity and those resisting exposure.
Such resistance often comes from individuals “on the wrong side of history,” Hetherington added.
Binance Listing Issue
Prior to this, Hetherington accused Binance of demanding up to 8% of his project’s token supply for listings, claiming the exchange required allocations for airdrops, marketing, and user programs.
Allegedly, Binance sought 1% for a first-day airdrop, 3% over the next six months, 1% for marketing at its discretion, and 3% for the BNB HODLer program, according to the Limitless Labs CEO, adding that the exchange requested a $250,000 security deposit, $2 million worth of BNB as collateral, and $200,000 in tokens for affiliate marketers.
Hetherington’s claims were then backed by Mike Dudas, founder of venture capital firm 6th Man Ventures, saying he had seen similar Binance listing proposals in recent months.
In response, Binance denied, in a now-deleted X post, the allegations, calling them “false and defamatory,” and threatened legal action against Hetherington for what it described as the unauthorized disclosure of confidential communications.
The exchange maintained that it does not profit from token listings and clarified that cash or token security deposits are typically refundable within one to two years. Binance also rejected claims that it or its founders engaged in token dumping, stating that Hetherington’s disclosures misled the public and compromised the integrity of confidential industry practices.
In a separate X post, Binance clarified that it does not earn from token listings, stating that all project token allocations are distributed to users through marketing programs such as airdrops and trading events. The exchange said it only charges small trading fees and requires refundable security deposits from projects to protect users and ensure post-listing commitment.
“Binance does not make money from the listing process. All project token allocations go 100% to users through marketing campaigns, including Alpha Airdrops, Launchpool, HODLer Airdrops, trading events, Earn APR campaigns, and more.”
Binance
Binance also promoted its Alpha program as a no-fee go-to-market path for early-stage projects, noting that as of October 2025, 217 projects have joined the program, with 103 listed on Futures and 36 on Spot.
This article is published on BitPinas: Limitless Labs CEO Alleges Binance Listing Fees of Up to 8% Token Supply, Sparks Transparency Debate
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