CEX listings outperform Nasdaq and Dow IPOs with 80% average returns

Cryptocurrency Listings Outperform Traditional Stock Listings Despite Criticism

Token Listing Procedures Draw Controversy

Token listing procedures on centralized cryptocurrency exchanges (CEXs) have drawn significant controversy in recent times. Changpeng "CZ" Zhao, co-founder and former CEO of Binance, has publicly criticized the process, citing the disappointing performances of some token listings.

Despite Criticism, Cryptocurrency Exchanges Outperform Traditional Stock Exchanges

Despite the criticism, crypto exchanges have outperformed traditional stock exchanges in terms of listings with positive returns on investment (ROI) and average ROI. According to a recent report by CoinMarketCap, over the past 180 days, crypto exchange listings had an average return of over 80%, outperforming the largest traditional stock indexes such as the Nasdaq and Dow Jones, as well as Bitcoin (BTC) and Ether (ETH).

Average ROI of 80% for Crypto Exchange Listings

The 80% return refers to the average performance of all listed tokens by the seven major exchanges, including Binance, Bybit, Coinbase, OKX, Bitget, Gate, and KuCoin. Moreover, 68% of crypto exchange listings boasted a positive ROI, outperforming the New York Stock Exchange’s (NYSE) 54% and the Nasdaq’s 51%.

Token Listing Performance Depends on Broader Market Conditions

The performance of a cryptocurrency after listing still depends on the wider market appetite, according to a Binance spokesperson. "Outcomes can vary depending on broader market conditions. As the industry matures, we’re seeing reduced volatility compared to earlier cycles — a shift that reflects greater stability and long-term sustainability in the crypto market," the spokesperson said.

Binance’s Token Listing Process

Binance, the world’s largest crypto exchange, listed 77 cryptocurrencies throughout 2023 and 2024, with a 0% delisting rate. The exchange has announced a community voting mechanism for token listings, aiming to make the listing process more decentralized.

Conclusion

In conclusion, despite the controversy surrounding token listing procedures on centralized cryptocurrency exchanges, crypto exchanges have outperformed traditional stock exchanges in terms of listings with positive returns on investment (ROI) and average ROI. The performance of a cryptocurrency after listing still depends on the wider market appetite, and it is essential to consider broader market conditions when evaluating the success of a token listing.

FAQs

Q: What is the average return of crypto exchange listings?
A: The average return of crypto exchange listings is over 80%.

Q: How many major exchanges are listed in the report?
A: The report includes the seven major exchanges: Binance, Bybit, Coinbase, OKX, Bitget, Gate, and KuCoin.

Q: What is the delisting rate for Binance?
A: Binance has a 0% delisting rate.

Q: What is the community voting mechanism for token listings?
A: Binance has announced a community voting mechanism for token listings, aiming to make the listing process more decentralized.

Q: What is the performance of a cryptocurrency after listing dependent on?
A: The performance of a cryptocurrency after listing is dependent on the wider market appetite.