Recent analyses indicate that cryptocurrency listings have surpassed the usual performance of traditional stock listings, despite ongoing criticism from the community regarding the manipulation risks associated with token listings on centralized exchanges.
The procedures for listing tokens on centralized cryptocurrency exchanges (CEXs) have sparked notable debate, especially after Changpeng “CZ” Zhao, the former CEO of Binance, labeled the process as flawed due to underwhelming results from various token listings.
Nonetheless, data shows that crypto exchanges have outperformed traditional stock markets concerning listings that yield positive returns on investment (ROI) and average ROI, as highlighted in a report released on April 3.
Within the last 180 days, listings on crypto exchanges have averaged returns exceeding 80%, outpacing significant traditional stock indices like the Nasdaq and Dow Jones, as well as Bitcoin (BTC) and Ether (ETH).
Performance of CEX listings compared to major indices and average ROI.
This 80% return reflects the average performance of all tokens listed by seven major exchanges, including Binance, Bybit, Coinbase, OKX, Bitget, Gate, and KuCoin.
Additionally, 68% of listings on crypto exchanges yielded a positive ROI, surpassing the New York Stock Exchange’s (NYSE) 54% and the Nasdaq’s 51%.
Performance metrics comparison.
“This information indicates that crypto exchanges have advanced in refining their listing processes,” the report concluded.
Tokens listed on CEXs typically attract significant interest from investors because these exchanges provide crucial new liquidity, which can enhance the price performance of these coins following their listings.
The criteria for token listings on CEXs began receiving attention in November 2024, when Tron founder Justin Sun alleged that Coinbase sought $330 million in total fees to list Tron (TRX), a surprising claim given that Coinbase asserts it charges no fees for such listings.
Market dynamics influence token listing performance
Recent dissatisfaction among investors regarding certain token listings might be linked to historically high profit expectations stemming from the considerable upside of many tokens listed on CEXs.
However, the returns of cryptocurrencies post-listing are heavily influenced by overall market sentiment, a representative from Binance noted, adding:
“Results can differ based on general market circumstances. As the sector evolves, we are observing a decrease in volatility compared to prior cycles, which reflects a trend toward greater stability and long-term viability in the crypto space.”
“It is reasonable for crypto investors to expect strong performance from new listings, often informed by the historical success of CEX listings,” the spokesperson emphasized.
Binance, the largest global crypto exchange, facilitated the listing of 77 cryptocurrencies throughout 2023 and 2024, maintaining a 0% delisting rate.
On March 9, Binance introduced a community voting mechanism for token listings to promote a more decentralized listing process.
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