The Dilemma of Listing Coins on Crypto Exchanges and Its Solutions

In the world of cryptocurrency, the issue of listing coins on exchanges has always been a concern. Compared to traditional companies going public, there are many issues with listing crypto projects. Traditional listings are mainly for refinancing to expand production and gain endorsement, whereas most crypto projects are not profitable, and the main purpose of listing coins is for founders, investors, and employees to exit.

Cryptocurrency projects enjoy the benefits of traditional listings without bearing the corresponding obligations. The lack of sponsor institution reviews means that many founders do not take the rigor of listing coins seriously. Since there are no penalties, some project parties resort to various means to achieve their goals.

The punishment for violations is generally insufficient. The project parties can at most be blacklisted by the exchange, but the impact on them is limited. It is difficult to investigate corruption among exchange employees, and the privacy of crypto assets makes it extremely challenging to gather evidence. Moreover, exchanges profit from listing junk coins, lacking effective constraints.

Compared to the strict financial disclosure requirements after traditional listings, cryptocurrency projects have almost no constraints after listing. Project parties can arbitrarily dispose of the proceeds from selling off their holdings, without reinvesting to expand production. This has led to a cycle of blood loss.

To fundamentally solve this problem, the most direct method is to stop listing coins. Before the crypto projects can address the fundamental issue of "no revenue", listing coins is of little significance. In the long run, if exchanges continue to follow the existing coin listing strategy, they may gradually be replaced by decentralized exchanges.

One possible solution is to establish two platforms: a main site and a community site. The main site will gradually narrow its coin listing range, while the community site will adopt a DEX model allowing projects to freely list coins. This can hand over value discovery to the community, avoiding the drawbacks of centralized decision-making. Although this transition may bring some growing pains, in the long run, it is beneficial for the healthy development of the industry and will foster truly valuable applications.