In the rapidly evolving world of cryptocurrency, a significant paradigm shift is underway. Once, Centralised Exchanges (CEXs) were the undisputed titans, wielding unparalleled influence over token launches. However, the emergence of Decentralised Exchanges (DEXs) and platforms like Binance Smart Chain (BSC) and Ethereum’s ERC tokens have brought about a new era of flexibility and efficiency in launching tokens.
A Simpler, Faster Future
Traditionally, launching a token on a CEX was a complex, expensive, and time-consuming endeavour. But today? With just a smart contract on platforms like BSC or ERC, new tokens can spring to life in a fraction of the time and cost. The process has been streamlined to such an extent that new crypto projects can literally be up and running within weeks.
The CEX-DEX Hybrid Strategy
So, what does this mean for established Centralised Exchanges? It’s simple: Embrace the DEX model for initial traction.
Consider this strategy: Launch the token on a DEX first. This lean approach allows for the token to gain initial credibility by being backed by a solid liquidity pool and, importantly, a professional Market Maker. Once this credibility is cemented in the decentralised world, transitioning to a CEX becomes a smoother affair. Your Market Maker will know all the ins and outs of this part of the process and advise accordingly.
Building Trust and Credibility
Starting on a DEX isn’t just about cutting costs or speeding up the launch process; it’s also about building trust. By proving its worth in the decentralised arena first, a token automatically gains a stamp of approval from the community. When it eventually moves to a CEX, it comes with a badge of authenticity, having been tried and tested in the DEX environment.
Charts are more than just visuals; they’re the pulse of a project, it’s where you go to to scrutinize viability and potential. Market makers are essential for shaping the perception of a project, especially in its early stages. During the initial phases, it’s the charts that potential investors and participants look at. A seasoned market maker doesn’t just ensure your project is well represented, they masterfully employ trading strategies to optimize these charts, instilling confidence and signalling project robustness. Leaving your project to the behest of the market hoping it will all work out is rarely a winning strategy.
In today’s agile and ever-adaptive crypto landscape, blending the strengths of both CEX and DEX might just be the way forward. By integrating the nimbleness of DEX launches with the muscle of CEX platforms, crypto projects can optimise for both efficiency and trust, ushering in a new hybrid era for the cryptocurrency marketplace.
