Listings on centralized cryptocurrency exchanges (CEX) beat exchanges like Nasdaq and Dow Jones in returns, with average returns of over 80%.
CEX Listings Outperform Traditional Exchanges
Over the past 180 days, listings on centralized cryptocurrency exchanges (CEX) have yielded an average return of over 80%, outperforming the IPO performance of traditional exchanges. Despite this success, the token listing processes on CEXs have been the subject of controversy due to the potential for manipulation and criticism.
Binance’s former CEO CZ also stated that these processes were flawed. However, cryptocurrency exchanges have yielded higher returns on investment compared to the averages of traditional exchanges.
Major exchanges such as Binance, Bybit, Coinbase, OKX, Bitget, Gate, and KuCoin have yielded over 80%, with 68% of their listings offering positive ROI. These developments suggest that cryptocurrency exchanges are improving their listing processes.
High Demand and Binance’s New Voting System
Centralized exchanges are in high demand from investors after token listings, which can increase coin prices. However, the token listing criteria for CEXs were controversial in November 2024 when Justin Sun claimed that Coinbase charged $330 million to list Tron. This contradicted Coinbase’s statements that it does not charge fees for new cryptocurrencies.
Token listing performance varies depending on market conditions. A Binance spokesperson stated that some investors’ disappointment stemmed from the historical success expectations of tokens listed on CEX. However, the return of cryptocurrency listings depends on overall market demand.
Binance listed 77 cryptocurrencies in 2023 and 2024 and had a 0% delisting rate. It also announced a community voting mechanism on March 9 to make the token listing process more decentralized.
You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.