⚡ Why Is Listing on CEXes Overrated? Arthur Hayes Explains
posted 8 Oct 2024
BitMEX co-founder Arthur Hayes discussed issues connected with token launches in the current crypto market.
Hayes entitled his article “PvP” which stands for Peer versus Peer pointing out the tendency of “shitcoin traders” to flip the usual meaning of this gaming term within the context of trading. PvP is used to describe the strong competition among new projects, which according to Hayes suggests that winning comes at the expense of others.
Hayes says the prices of many new projects have plummeted post-launch because they were aimed at VCs rather than retail investors. It has led to many projects being launched with high fully diluted value (FDV) but low circulating supply.
This means that while the total potential value of these tokens is substantial, the actual amount available for trading is limited. As a result, this dynamic often causes token prices to soar and then drop significantly after their launch, reflecting a volatile market where many investors face losses.
About listing on exchanges:
Hayes says a new token doesn’t have to be listed on centralized exchanges and pay fees to achieve adoption. As an example, he mentions Auki Labs, a decentralized computing platform that’s more focused on retailers and DEX listings.
Hayes is skeptical about the projects that reach out to advisors saying for help to get listed on major exchanges.
I believe that creating a useful product or service with increasing numbers of paying customers is the secret sauce to a successful Web3 project. Granted, if you have a piece of shit project that has value only because Irene Zhao reposted your content, then yes, you need a CEX so that you can dump it on their retail users.Hayes stated.
Referring to founders’ urge to get listed on Binance, in particular, Hayes says despite his high respect for the founder CZ (Changpeng Zhao), “trading an arm and a leg for a Binance listing ain’t worth it.”
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