Scroll announced the launch of its native SCR token through the Binance Launchpool, causing the crypto community to worry about the centralized approach.
Scroll, an Ethereum layer-2 rollup solution, has partnered with the Binance exchange to broaden its global reach, especially in emerging markets. The listing announcement came last week to criticism from the crypto and Scroll communities. Concerns revolved around the project compromising its decentralization by partnering with centralized entities.
Many believed Scroll should have waited for Binance to list the SCR token organically rather than the project taking the partnership approach to get it up on the exchange. Such listing partnerships often come with costs, which some in the community have called Scroll selling out to a centralized platform.
One X user, going by zjj.eth, called the decision a “tough” one, but “they strongly doubt that it’s a good decision long term.” They added, “I like everyone in the scroll team, but kneeling to CEX is really disappointing.”
Scroll Co-Founder Defends the Decision
Scroll co-founder Ye Zhang chimed in to defend the project’s Binance alliance, stating, “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.” He added, “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.”
His response involved addressing numerous other benefits the collaboration would bring, including stablecoin support which most other layer-2s do not have. He called this a “classic chicken-and-egg problem” and that the community wants to “see adoption, but adoption only comes if this channel opens.” Zhang spoke of other potential benefits that will come with the partnership, stating it is more than just a listing, but they cannot disclose any more information at the time.
He also spoke of how crypto users often dislike infrastructure solutions but they were necessary to get the “deep support” the project needs. Celo, for instance, has existed for years but only received USDT support recently through Binance, which spurred growing adoption. “With this timing, we have to decide between moving fast now or potentially waiting another 6-12 months for uncertain support.”
As Scroll joined hands with Binance, its SCR token launch announcement came on October 8. The project touted the launch as its first step toward decentralization. However, offering it through the Binance Launchpool is what has aroused criticism from all over.
