Study of CEX Listing Effects: A Big Pump Followed by a Bigger Dump

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Centralized exchange (CEX) listings have long been seen as a milestone for crypto projects, promising increased exposure, liquidity, and price surges. However, the reality often follows a predictable pattern: a sharp initial pump, followed by a more dramatic dump. This analysis reveals the fleeting benefits of CEX listings on token prices across major exchanges like Binance, Bybit, and Coinbase.

Key Findings

Methodology

We analyzed 389 tokens listed in 2024 across six major exchanges:

Data included:

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The Initial Pump: Tokens Surge 54% on Average

CEX listings trigger short-term FOMO buying, driving an average price increase of 54%. Key observations:

Case Study: Binance’s Dominance

Binance-listed tokens spike 87% at launch—the highest among exchanges. However, this is often followed by a 70% drop.


The Inevitable Dump: 89% of Tokens Decline

Post-listing sell-offs are nearly universal:

  1. Price drop: Tokens lose 52% of their value on average.
  2. ATH reality: Most tokens never recover their listing peaks.

Exchange Comparison

| Exchange | Avg. Pump | ATH at Listing | Post-Listing Drop |
|-----------|----------|----------------|-------------------|
| Binance | 87% | 46% | 70% |
| Bybit | 61% | 60% | 63% |
| Coinbase | 41% | 23% | 28% |

Coinbase shows milder volatility, appealing to risk-averse investors.


FAQs

1. Why do tokens dump after CEX listings?

2. Which exchange has the least severe dumps?

Coinbase tokens drop 28% on average—lower than Binance (70%) or Bybit (63%).

3. Are CEX listings still beneficial for projects?

Yes, for liquidity and exposure, but long-term value depends on the project’s utility.

👉 Learn how to identify sustainable crypto investments


Conclusion

CEX listings catalyze short-term pumps but often lead to longer-term losses. Traders should:

For projects, listings are a double-edged sword—visibility comes with volatility.