Arthur Hayes Reveals Secrets of Crypto Exchange Listings in His New Essay “PvP” 🍀
💡 Arthur Hayes, co-founder of the cryptocurrency exchange BitMEX, has published a new essay titled “PvP”, in which he revealed many aspects related to listings on centralized cryptocurrency exchanges (CEX). In the essay, Hayes shared important information about the cost and conditions of token listings that were provided to him by several crypto projects planning to launch their tokens on major exchanges.
🔵 Cost of Listing on Centralized Exchanges: According to Hayes, most CEXs charge a listing fee ranging from $250,000 to $500,000 in stablecoins. However, major exchanges like Binance demand up to 8% of the total token supply of the project. Binance also requires projects to purchase up to $5 million worth of BNB and stake it as a deposit, which is returned if the project is delisted.
🔵 Binance’s Strategy: Binance has developed a unique listing strategy that involves not only charging a percentage of the token supply but also requiring the purchase of BNB and staking it on the platform. Moreover, Binance demands that projects distribute up to 8% of their token supply to exchange users through airdrops and marketing activities. Other exchanges also require marketing expenses that can amount to 3% of the token issuance or a minimum of $250,000.
🔵 No Price Guarantee: In 2024, listing on major exchanges no longer guarantees a rise in token price. Arthur Hayes emphasizes that regardless of the exchange, listing does not ensure a “pump” in the token price. Projects launched this year have shown poor results for retail investors, and high Fully Diluted Valuations (FDVs) have only exacerbated the situation, leading to sharp price drops after listing.
💬 Advice from Hayes: Arthur Hayes advises project founders to focus on building a valuable product or service and attracting real users rather than paying for CEX listings. He claims that projects with a strong ecosystem and community support can successfully operate without the need to pay for a listing on major exchanges.
🔗 Learn more about Arthur Hayes’ essay here: PvP Essay on BitMEX Blog
