The Crypto Listing Paradox: The struggle for all Small Crypto Projects and How to Prevail.
The Crypto Listing Paradox: The struggle for all Small Crypto Projects and How to Prevail.
In the dynamic world of cryptocurrencies, gaining a listing on a traditional centralized exchange (CEX)
or launchpad like Coinlist can be a pivotal moment for any project, opening doors to liquidity, exposure, and potential growth. However, for small crypto projects, this journey comes with a paradoxical perverse challenge – the Crypto Listing Paradox.
"The business model of tradfi institutions as we know today, encourages fraud and project failure."
CEXs, often regarded as gatekeepers to broader market participation, present a complex set of requirements for projects seeking a listing. While these platforms can significantly boost a project's credibility, the demands placed on small crypto projects, with a small marketcap, can be financially frightening. Here's a breakdown of the challenges faced by these projects:
Listing Fees: CEXs typically require projects to pay substantial listing fees (up to $500.000), acting as a barrier to entry. For smaller projects with limited resources, this initial financial burden can hinder their chances of securing a listing. So CEXs will let those projects pay with their own tokens. After the project gets listed, the tokens are being dumped by the CEX to pay for the fee and the token price plummets. Leaving the crypto community and the project with bags full of sand.
Market Maker: Beyond listing fees, CEXs may recommend or mandate projects to engage market makers to enhance liquidity. This adds another layer of cost, as market makers often charge fees for their services.
Marketing Campaigns: To stand out in the competitive crypto landscape, projects are often asked to invest in marketing campaigns like trading competitions. This expenditure, while potentially beneficial for exposure, poses a challenge for projects operating on tight budgets.
Community Engagement: CEXs expect projects to bring in traders from their own community. This requires active participation and engagement, putting the onus on project teams to foster a vibrant and involved user base. This often results in buying fake followers and pumping fake volume to meet the CEXs requirements.
Volume Maintenance: Maintaining a high trading volume is crucial for remaining listed on a CEX. Failure to do so can lead to delisting, resulting in the loss of funds invested in the listing process.
The paradox lies in the fact that the only way to avoid paying exorbitant listing fees for listing a token on a CEX is, to already be a sizable project.
Which only seem to be achieved by being listed on a CEX. Paying exorbitant listing fees is a risk that always reflects back to the crypto community.
This Catch-22 situation creates a perverse challenge for small crypto projects striving to gain visibility, traction and protecting their community. These things cannot possibly go together.
However, there is hope. The crypto community plays a vital role in breaking this paradox. Collective action, even in small doses, can significantly impact a project's trajectory. A few minutes of engagement each day, whether through group messages, tweets, retweets, or comments on influential accounts, can contribute to building the necessary momentum.
While the Crypto Listing Paradox poses a significant hurdle for small crypto projects, community support and active engagement can be powerful tools for overcoming these challenges. By fostering a collaborative spirit within the crypto space, we can help promising projects defy the odds and thrive in the ever-evolving landscape of digital assets.
Justmoney’s decentralized cryptocurrency platform,just.money on Polygon, Ethereum, Tron, Binance Chain, and BTTC addresses the Crypto Listing Paradox by providing a cost-effective defi platform. It offers projects an opportunity to list tokens free of charge across multiple blockchains, within a fast growing decentralized crypto ecosystem that goes beyond the limitations of traditional centralized exchanges. Here is how:
- Projects or tokenholders can provide liquidity that can be redeemed at anytime for all listed trading pairs.
- Providing liquidity ensures the liquidity provider to earn 83% of all the trading fees from the pair they provided liquidity for.
- The other part of the fee is being used to maintain the platform.
- The JustMoney Suite for small crypto projects comes with an Automated Market Maker, a Payment Terminal, a Launchpad, an Invoicing System, Giftcard solution and many more tools like widgets and Telegram bots.
- All services are free of charge but financed by each transaction.
"This business model is much more sustainable than current business models of the traditional centralized exchanges or financial institutions."
- For example: providing liquidity on the JM/USDT pool on Binance Smart Chain gives at the time of writing, an annualized interest of over 12%. Instead of paying listing fees, projects can now earn listing revenues.
The recent partnership between TheManeToken and JustMoney can tackle the Crypto Listing Paradox by leveraging Mane Token’s marketing expertise. Mane Token’s strategic campaigns and engaged community can enhance visibility for projects on Justmoney, fostering cross-promotion and addressing B2B needs. With Justmoney’s presence on multiple blockchains, the collaboration aims for sustained ecosystem growth, offering a decentralized and sustainable alternative to traditional exchange listings and marketing campaigns.
Small cryptoprojects should definitely consider to be listed on decentralized community defi platforms like the JustMoney platform to grow their business with a small effort, low costs and by so protecting their community.
This article was also posted by me on
https://forum.trondao.org/t/are-you-aware-of-the-crypto-listing-paradox/22379
As we navigate these digital decentralized frontiers together, I invite you to stay connected. Follow me on X @multichainmarco for more insights, updates, and discussions on the exciting realm of cryptocurrency.
Your opinions matter, so feel free to share your thoughts in the comments below or reach out on X. Let’s continue this conversation and explore the fascinating possibilities that crypto has to offer.
Thank you for reading and feel free joining me on this journey!
Did you alse read my other article about Monitoring Crypto Gains with JustMoney: https://steemit.com/tron/@multichainmarco/monitoring-crypto-gains-on-the-blockchain-with-justmoney
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