Why More Projects Are Rethinking CEX-First Token Launches

For any crypto project, getting listed on a centralized exchange (CEX) has long been seen as a major milestone. Exchanges like Binance, Coinbase, ByBit, and others provide projects with liquidity, exposure, and access to a massive user base. There’s no denying that CEXs play a crucial role in the crypto ecosystem—they make it easier for new users to enter the space, provide fiat onramps, and facilitate larger trading volumes.

But while CEX listings can be beneficial, they aren’t always the best first step for a project looking to create sustainable long-term value. More and more teams are considering DEX-first strategies to capture value for their communities, reduce early sell pressure, and establish strong on-chain trading activity before expanding to CEXs.

So, what’s the right balance? Let’s break it down.

💰 The Real Cost of a CEX Listing

CEXs provide immediate liquidity and exposure—but these benefits come with a cost, and it’s often the community and project team that pays the price.

• High Token Demands – Some exchanges request up to 15% of a project’s total supply as part of the listing process. This can create massive sell pressure once those tokens unlock.
• Expensive Listing Fees – While Coinbase CEO Brian Armstrong says listings are "free," industry leaders like Andre Cronje (Yearn Finance) and Justin Sun (Tron) have publicly stated that fees can reach $30M-$300M, or require massive token deposits.
• Market-Making Costs – To maintain liquidity, projects must fund market makers (MMs) who either sell into price increases to cover their costs or charge a monthly retainer + liquidity funding (forcing projects to spend millions just to maintain order books).
• Dump Risk – New CEX listings often lead to early price surges, but this is followed by heavy sell-offs as large investors take profits and retail users get caught on the wrong side of the trade.

It’s important to recognize that CEXs are not inherently bad—they offer reach, credibility, and trading volume. But projects need to think strategically about when and how to list.

📉 The Myth of CEX Volume: Is It Always Worth It?

A big reason projects choose to list on CEXs is liquidity and trading volume. However, not all CEX volume is real or meaningful for a project’s long-term success.

🔹Some exchanges have surprisingly low real trading volume with many reporting to be less than $40K in total daily trading volume—barely enough to justify the listing costs.

🔹 Many tokens listed on major CEXs see rapid sell-offs. Large investors and early token recipients use CEX liquidity as an exit, leading to heavy dumps on retail traders.

🔹 Wash trading & artificial volume – Some platforms inflate trading numbers, making it appear as though there’s more activity than there actually is.

If a project pays millions for a CEX listing, but trading volume is low and most of it is sell pressure, does it truly benefit the community?

This is where DEX-first strategies provide an alternative approach that protects value, builds real liquidity, and creates sustainable growth before expanding to CEXs.

🌐 The DEX-First Advantage: Community-Driven Liquidity

A DEX-first approach doesn’t mean avoiding CEXs altogether—it means prioritizing decentralized, transparent liquidity before introducing third-party exchanges.

Why Start with a DEX?

✅ On-Chain Transparency – Every trade is visible, preventing hidden market manipulation.

✅ Decentralized liquidity – Instead of handing liquidity to a CEX, projects encourage ecosystem participation

✅ Better Metrics for Future Listings – CEXs are more likely to list projects with strong organic on-chain volume, improving chances of securing top-tier exchange listings later.

Many successful projects use this approach, building decentralized liquidity first before expanding to major CEXs.

🔄 How Haven1’s hSwap Supports the Ecosystem

One of the biggest challenges of DEX-first models has been fragmented liquidity and high slippage. Haven1 addresses this with hSwap, a decentralized exchange mechanism that redirects trading activity to strengthen network liquidity.

Here’s how it works:

🔹 Trading fees contribute to network development (instead of being captured by a centralized entity).

🔹 Ecosystem-driven value capture promotes ongoing participation and ecosystem growth.

🔹 Arbitrage between hSwap and Uniswap creates natural demand and sustained trading activity.

This model doesn’t exclude CEX listings—it makes them stronger by ensuring the project has a healthy foundation before expanding.

📊 The Smart Play: Combining DEX & CEX for Long-Term Success

The debate isn’t about DEX vs. CEX—it’s about strategy.

📌 CEXs provide exposure, fiat onramps, and access to mainstream traders.

📌DEXs support decentralized liquidity, transparent trading, and long-term market sustainability.

A DEX-first strategy enables stronger on-chain activity and participation, while keeping options open for high-value CEX listings when the time is right.

🚀 The Ideal Strategy?

🔹 Start with a DEX to establish on-chain liquidity and engage the community.

🔹 Use transparent on-chain data to support strategic, high-impact CEX listings.

🔹 Ensure exchange partnerships focus on long-term value, not just short-term market activity.

By thinking long-term, projects can establish sustainable ecosystems while still benefiting from the global reach of major exchanges.

🏆 The Future of Token Launches: Smarter, More Sustainable Growth

For too long, the industry has focused on short-term hype, relying on CEX-driven liquidity events that often result in high-downside volatility.

It’s time for a more strategic approach:

🚀 DEX-first models establish real user-driven market activity before expanding to CEXs.

📊 On-chain data supports stronger exchange partnerships and long-term project stability.

💡 A balanced approach ensures decentralized liquidity remains a foundation for future growth.

CEXs will always play an important role in crypto, but projects that prioritize ecosystem-driven liquidity, on-chain metrics, and long-term sustainability will be better positioned for success.

What do you think? Should more projects start on a DEX before listing on a CEX? Let’s discuss. 👇