The Truth About Liquidity: 2024 Exchange Coin Listing Effect Research Report

1. Introduction to Research

1.1 Research Background

Since the beginning of this year, the market has sparked extensive discussions on VC tokens with high fully diluted valuations ( FDV ) but low circulating market caps ( MC ). With newly issued tokens in 2024, the MC/FDV ratio has dropped to its lowest level in the past three years, indicating that a large number of tokens will be unlocked and enter the market in the future. Although the initial circulation is low, the market may experience a price increase in the short term due to rising demand, but this increase lacks sustainability. Once a large number of tokens are unlocked and enter the market, the risk of oversupply intensifies, and investors begin to worry that this market structure may not provide lasting support for price increases.

As a result, many investors’ interest has begun to shift from these VC tokens to Meme coins. The characteristics of Meme coins are that most tokens are fully unlocked at TGE, with a high circulation rate and no sell-off pressure from future unlocks. This structure reduces the supply pressure in the market, giving investors more confidence. Many Meme coins have an MC/FDV ratio close to 1 at issuance, meaning holders will not face dilution due to further token issuance, providing a relatively stable market environment. As awareness of the risks of large-scale token unlocks deepens, investors’ interest has gradually turned to these high liquidity, low inflation rate Meme coins, even though these tokens may lack practical application scenarios.

In the current market landscape, investors are required to be more cautious in selecting tokens. However, when investors choose tokens, they often find it difficult to independently assess the value and potential of each project. At this time, the filtering mechanism of the exchange becomes crucial. As the “gatekeeper” that directly pushes token assets to users, centralized exchanges not only help verify the compliance and market potential of tokens but also play a role in filtering quality projects. Despite another voice in the market that on-chain transactions will surpass CEX transactions, Klein Labs believes that the market share of centralized exchanges will not be taken away by on-chain transactions. Factors such as the smoothness of CEX transactions, centralized accountable asset custody, the establishment of user habits and mindsets, liquidity barriers, and the trend of global regulatory compliance will ensure that the share of transactions in CEX will consistently and sustainably exceed that of on-chain transactions.

So, the question that follows is, how do centralized exchanges filter and decide which projects to list among many? How has the overall performance of the coins that have been listed in the past year been? Is there any correlation between the performance of these listed tokens and the exchanges they were chosen to be on?

In order to address these questions of market concern, this study aims to explore the listing situation of major exchanges and analyze its actual impact on the token market performance, focusing on the changes in trading volume and price fluctuation characteristics after listing, to identify the influence of different exchanges on the market performance of coins after they go live.

1.2 Research Methodology

1.2.1 Research Object

We combine exchanges with regions and market orientation, mainly dividing them into these three categories:

Created by Chinese, targeting the global market: Binance, Bybit, OKX, Bitget, KuCoin, Gate, etc. These are well-known exchanges primarily founded and invested in by Chinese, aimed at the global market. There are many Chinese exchanges, and for the purpose of research, the selected exchanges have different development characteristics, while the exchanges not selected also have their own advantages.

South Korea’s creation, aimed at the local market: Bithumb, UPbit, etc. Mainly targeting the South Korean local market.

Created in the US, targeting Europe and America: Coinbase, Kraken, etc. US exchanges mainly focus on the European and American markets and are usually strictly regulated by the SEC, CFTC, and others.

Exchanges in regions such as Latin America, India, and Africa have an overall trading volume and liquidity of less than 5%, thus they will not be analyzed in depth in this research report.

We selected a total of 10 representative exchanges mentioned above to analyze their coin listing performance, including the number of listing events and their subsequent market impact.

1.2.2 Time Range

Mainly focus on the price changes of the token on the 1st day, the previous 7 days, and the previous 30 days after the TGE, analyzing its trends, volatility patterns, and market reactions. The reasons are as follows:

• On the first day of TGE, new assets are issued, and trading volume is highly active, reflecting the market’s immediate acceptance. It is greatly influenced by the rush for allocation and FOMO sentiment, making it a key phase for the market’s initial pricing.
• The price changes in the first 7 days after the TGE can capture the market’s short-term sentiment towards the new token, as well as the initial recognition of the project’s fundamentals, measure the sustainability of market enthusiasm, and revert to the project’s reasonable initial pricing.
• The first 30 days after the TGE observe the long-term support of the token, short-term speculation cools down, speculators gradually exit, and whether the token price and trading volume are maintained becomes an important reference for market recognition.

1.2.3 Data Processing

This study adopts a systematic data processing method to ensure the scientific nature of the analysis. Compared to common research methods on the market, this study is more intuitive, concise, and efficient.

This research report mainly uses data from TradingView, covering the price data of newly listed tokens on major exchanges in 2024, including the initial listing price, market prices at different time points, and trading volumes. Due to the large number of sample points, this large-scale data analysis helps to reduce the impact of individual anomalous data on the overall trend, thereby improving the reliability of the statistical results.

(I) Overview of Multi-Variable Token Listing Activities

This study employs multivariate analysis methods, taking into account factors such as market trends, trading depth, and Liquidity to ensure the comprehensiveness and scientific nature of the results. We compared the average price fluctuations of new coins on different exchanges and conducted an in-depth analysis in conjunction with the market positioning of the exchanges (, such as user base, Liquidity, and coin listing strategies ).

(II)Average value judgment of overall performance

To measure the market performance of the token, we calculated its percentage change relative to the initial price of the coin (Percentage Change), the formula is as follows:

Percentage Change = (Current Price - Initial Price) / Initial Price * 100%

Considering that extreme situations in the market may affect the overall data trends, we eliminated the top 10% and bottom 10% of extreme outliers to reduce the interference of sporadic market events (, such as sudden good news, market manipulation, and liquidity anomalies ) on the statistical results. This treatment makes the calculation results more representative and can more accurately reflect the real market performance of new coins on different exchanges. Subsequently, we calculated the average price fluctuation of new coins on each exchange to measure the overall performance of new coin markets across different platforms.

(III)Coefficient of Variation to Determine Stability

Coefficient of Variation, CV( is an indicator that measures the relative volatility of data, and its calculation formula is: CV = σ / μ

In this case, σ is the standard deviation and μ is the mean. The coefficient of variation is a dimensionless indicator that is not affected by data units, making it suitable for comparing volatility across different datasets. In market analysis, CV is primarily used to measure the relative volatility of prices or returns. In exchange or token price analysis, CV can reflect the relative stability of different markets, providing investors with a basis for risk assessment. The coefficient of variation is used here instead of the standard deviation because it has greater applicability compared to the standard deviation.

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2. Overview of Coin Listing Activities

) 2.1 Exchange Comparison

2.1.1 Number of Coins and FDV Preferences

Overview of Coin Listing Events in 2024

We found that: from the overall data perspective, top exchanges ### such as a certain exchange, a certain exchange, and a certain exchange ( have generally fewer coins listed than other exchanges. This reflects the different impacts of the positions of exchanges on the coin listing style.

From the perspective of the number of listed coins, some exchanges have stricter listing rules, resulting in fewer listed coins but larger scales; whereas other exchanges tend to list new assets more frequently, providing more trading opportunities. Data shows that the number of listed coins is roughly negatively correlated with FDV, meaning that exchanges that list more high FDV projects usually have fewer listed coins.

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CEX adopts different strategies to determine the priority of listing coins, focusing on different levels of fully diluted valuation ) FDV (. Here we categorize based on the project’s FDV to better understand the exchange’s listing standards. When valuing tokens, we often consider MC and FDV, as they jointly reflect the valuation, market size, and Liquidity of the token.

• MC only calculates the total value of the current circulating tokens, without considering the tokens that will be unlocked in the future, which may lead to an undervaluation of the project’s true worth, especially when most tokens have not yet been unlocked, which can be misleading.
• FDV is calculated based on the total supply of all tokens, which can more comprehensively reflect the potential valuation of the project, helping investors assess future selling pressure risks and long-term value. For projects with low MC/FDV, the short-term reference significance of FDV is limited, and it is more of a long-term reference.

Therefore, when analyzing newly launched tokens, FDV is more indicative than Market Cap. Here we choose FDV as the standard.

In addition, in terms of attitudes towards initial projects, most exchanges usually adopt a balanced strategy, taking into account both initial and non-initial projects. However, the requirements for non-initial projects are generally higher because initial projects tend to attract more new users. Furthermore, two South Korean exchanges, a certain trading platform and another trading platform, mainly focus on listing non-initial coins. Compared to initial listings, non-initial coin listings can reduce selection risks and avoid market fluctuations and initial liquidity issues during the initial phase. At the same time, for project parties, compared to initial listings, they do not need to bear excessive market promotion and liquidity management pressure, and non-initial coin listings can leverage existing market recognition to drive growth.

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) 2.1.2 Track Preference

Some exchange

In 2024, the number of Meme coins still accounts for the largest proportion. Infra and DeFi projects have a significant proportion. The number of coins in the RWA and DePIN tracks is relatively small on a certain exchange, but overall performance is quite good. Among them, the highest increase in USUAL spot reached 7081%. Although the coin selection on a certain exchange in these areas is relatively cautious, once launched, the market response is usually quite positive. In the second half of the year, the coin preference of a certain exchange in the AI track is clearly tilted towards AI Agent tokens, which have the highest proportion among AI-related projects.

In 2024, a certain exchange shows a preference for a certain public chain ecosystem. For example, the launch of projects like BANANA and CGPT indicates that the exchange is strengthening its support for its own on-chain ecosystem.

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)# Some exchange

On a certain exchange, the number of coins listed shows that Meme coins account for the most, with a proportion of about 25%. In comparison to other exchanges, this platform has listed more coins in the public chain and infrastructure tracks, with a total proportion reaching as high as 34%. This indicates that, in contrast, the platform is more focused on underlying technology innovation, scalability optimization, and the sustainable development of the blockchain ecosystem in 2024.

In the emerging track, a certain exchange has only launched 4 types of AI coins, including DMAIL and GPT, 3 new coins in the RWA track, and only 3 in the DePIN track. This reflects a relatively cautious layout of a certain exchange in the relatively emerging tracks.

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)# Some exchange

The biggest feature of a certain exchange’s token listing in 2024 is the broad coverage of sectors, with tokens generally performing well. In 2024, UNI and BNT were launched in the DEX sector. This indicates that the certain exchange still has significant potential and room for development in listing popular assets, as many mainstream or high market cap tokens have yet to be listed and may expand support further in the future. At the same time, this also reflects that the certain exchange has a relatively strict review process for token listings, preferring to carefully select assets with long-term potential.

On a certain exchange, the price increase of coins in various tracks is quite prominent. PEPE###Meme(, AGLD)Game(, DRIFT )