Sirwin
Sirwin

Delists Through Bull Market

By idiosyncratic | Idiosyncratic Crypto | 13 Sep 2023


Nobody talks about it but if you have been in crypto over the last two bull markets, you will clearly remember that centralized exchanges tend to delist some coins which do not have enough trading volume or popularity as before. If a project loses its reputation and trading volume in time, it may face real delist cases that end the access to thousands of "possible" investors and the potential hikes in a bull market.

Image from thread

The biggest problem that veteran coins have is, most probably, the risk of delisting in the case that they do not have enough centralized exchange listings and community members to add value. I remember lots of different blockchains that I had been using, such as Wanchain, Neo, Stratis and Waves, which were quite popular in 2017 and 2018. However, they could not keep their social power strong and the projects are forgotten by the crypto enthusiasts.

Actually, nobody would expect it because they were some of the top projects. For example, NEO was called Chinese Ethereum on the other hand there were a lot of unique projects like Bitradio that rewarded the users with their own tokens and also we had Bitdegree which is a form of Khan Academy or Udemy on a blockchain. Even though these projects had a product that is working and they had a real utility, they no longer attract people.

Centralized Risks & Potentials

I'm aware of the fact that centralized exchanges are some of the riskiest sides of crypto because they might have some issues with policy-makers, they may use the user funds for their own operations, and they may face operational problems, etc. Eventually, the cryptocurrencies of people will be at risk directly or indirectly.

When it comes to the potential of centralized exchanges, like a bazaar in the ancient times, we cannot underestimate their potential if a coin is listed on Binance, Coinbase or any other top tier centralized exchanges; it will eventually pump. Remember, in a bull marketi when 90% of coins have pumped in Binance, the new investors who are looking for cheap trades buy X,Y,Z coin just because they have not pumped yet.

In a bull-run, there is no selective process by newcomers with a bunch of money. You can't believe that a celebrity a millionaire that you know you'll buy X,Y,Z coin just because it is listed on Binance or Coinbase no matter what the product behind is; no matter who the team members are or the use case of the coin. This is the only but most potent side of being listed on a centralized exchange!

DEX for Veterans, not Newbies

Unfortunately, Pancake, Uniswap, Maverick or any other decentralized platform can't compete with the influence of centralized exchange testing in terms of their positive impacts on the performance of the coin.

We need to make sure that the coins that we have been holding for several years are still listed on Tier 1 / Tier 2 exchanges and they are not likely to face delisting in the middle of the party. If a cryptocurrency has just 100,000 - 300,000 dollars daily volume, It might be better for the team to increase its volume with incentives for the community and the investors. Otherwise, we have witnessed it at least for 100 times in crypto. The centralized exchanges don't want to bear operational costs for coins that will not bring them volume, new users and advantages against the other exchanges. For the crypto project to stay in a top-tier exchange, I think the team or the community members must care about the risk of delisting until the top of a market cycle.

Keep in mind that millions of newcomers have no idea about crypto. They are only familiar with Binance, Coinbase, and Kucoin. These guys have a lot of money but 0 crypto knowledge. If a coin is listed as presented in a store's showcase, it will be bought as the others skyrocket. The others may go 100x but it may just be stuck at 10x. Yet, this is only possible with a top-tier listing. I'm not a fan of centralized exchanges but I need to share what I've experienced over the last 6 years.

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idiosyncratic
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