The Scroll Binance listing has sparked community debate, with critics citing centralization concerns and Scroll’s co-founder highlighting global growth.
Scroll, a layer-2 Ethereum project, was recently listed on the centralized cryptocurrency exchange Binance, which sparked a debate within the crypto community regarding centralization.
The listing announced on Oct. 11, was praised for its potential to stimulate growth but criticized for its perceived alignment with centralized entities. There were apprehensions regarding the project’s commitment to its decentralization principles.
Zeng Jiajun, an X user, characterized Scroll’s decision to list on Binance as “kneeling” to a centralized exchange (CEX). He described it as a “tough decision to make” but expressed skepticism regarding the long-term implications.
Cointelegraph contacted Scroll for comment; however, a response had yet to be received by publication.
A strategic decision for the expansion of the global economy
The decision to collaborate with Binance, according to Scroll co-founder Ye Zhang, was a component of a more comprehensive strategy to broaden the project’s ecosystem, with a particular emphasis on emerging markets.
Zhang declared:
“I don’t think partnering with Binance is “kneeling to a CEX for listing” – it’s way more than that, it’s a strategic decision to build a partnership for growth and broader support. However, it is indeed a tough decision.”
As Zhang emphasized, Binance would facilitate the transfer of funds into and out of the Scroll network by providing users with on-ramp and off-ramp services.
Advocates for decentralization express apprehension
Zhang’s perspective was only sometimes accepted within the crypto community. Specific individuals expressed concerns regarding the partnership with Binance and its potential impact on Scroll’s decentralization initiatives.
Jiajun, an advocate for Ether (ETH), expressed his disappointment:
“Imagine @VitalikButerin paying 5.5% to @okx when @star_okx refused to list $ETH.”
Other users on X suggested that Binance should not have been the first exchange to list Scroll. They contended that Binance would have listed the “chain organically” without the necessity of a partnership if it had a sufficient number of users and activity.
Striking a balance
Zhang defended the partnership in response to the criticism:
“If we want to build a competitive ecosystem with real global reach, compete with Tron in these markets, and attract different categories of users to the Ethereum ecosystem, strong CEX support is absolutely crucial.”
The Scroll co-founder also addressed token distribution concerns, clarifying that the launch pool allocation is derived from the ecosystem and growth category, ensuring that the community airdrop remains unaffected.
