The Liquidity Mirage: CEX Token Listings and the Illusion of Value Creation in 2025

In 2025, the crypto market has witnessed a paradox: centralized exchange (CEX) token listings, long celebrated as catalysts for price appreciation, have increasingly failed to deliver sustained value. Data from KuCoin and CoinMarketCap reveals that 83% of tokens listed on major CEX platforms in 2025 traded below their listing price within months of launch according to data. This underperformance, observed across exchanges like Binance, Gate, and MEXC, underscores a critical disconnect between liquidity events and genuine value creation. For investors, this trend raises urgent questions about the role of CEX listings in the evolving crypto ecosystem-and whether they are becoming more akin to speculative selloffs than foundational milestones.

The Liquidity Event: A Double-Edged Sword

CEX listings traditionally serve as liquidity events, enabling projects to unlock capital and attract retail and institutional participation. However, 2025's data paints a darker picture. According to a report by Crypto News, 84.7% of 118 token generation events (TGEs) in 2025 saw tokens drop below their launch valuations, with many collapsing by over 70% according to the report. High-profile examples like Syndicate, Animecoin, and Bio Protocol-each of which experienced over 93% declines-highlight the fragility of speculative narratives in a market increasingly dominated by profit-taking and short-termism according to the report.

The mechanics of these underperformances are well-documented. Post-listing surges in demand are often followed by aggressive selling from early participants, including insiders and market makers, who offload tokens to capitalize on initial hype according to data. Retail investors, lured by FOMO (fear of missing out), frequently enter at inflated prices, only to face downward pressure as liquidity dries up. This dynamic transforms CEX listings into "liquidity siphons," where value extraction outpaces creation.

Divergence in Narratives: RWA vs. Speculation

While the majority of token launches faltered, 2025 also saw divergence in performance based on underlying narratives. Real World Assets (RWAs), for instance, defied the broader slump, achieving a 179% gain year-to-date according to KuCoin data. This success contrasts sharply with the struggles of speculative sectors like Memecoins and NFTs, which saw NFTs plummet by 80.7% amid macroeconomic volatility and regulatory uncertainty according to KuCoin data. The "1011 crash," triggered by U.S. tariff announcements and global macroeconomic shifts, further exacerbated risks for tokens lacking real-world utility according to KuCoin data.

This divergence underscores a growing investor preference for assets with tangible, verifiable value. RWAs, which tokenize real-world assets like real estate and commodities, have gained traction by aligning with institutional-grade standards and regulatory clarity according to TokenMetrics. In contrast, tokens tied to speculative themes-such as AI or NFTs-continue to face skepticism, particularly as token velocity (the rate at which tokens circulate) remains a key metric for assessing long-term viability according to InnMind.

The Rise of Value-Creation Metrics

Amid the underperformance of speculative tokens, 2025 has also seen a maturation in tokenomics design. Projects are increasingly prioritizing value creation over liquidity extraction by implementing mechanisms like token burning, staking rewards, and vesting schedules to reduce sell pressure according to InnMind. For example, platforms like ENS and Celestia have demonstrated how governance-driven utility and aligned tokenomics can foster sustainable adoption according to Predict.

Regulatory frameworks, including the EU's MiCA and U.S. Reg D/Reg S, have further incentivized projects to focus on fundamentals according to Predict. These frameworks mandate transparency in token distribution and usage, deterring unregulated fundraising while encouraging projects to build ecosystems with clear economic incentives. Early-access token launches, supported by institutional-grade platforms like Maple Finance and Franklin Templeton BENJI, are also gaining traction by offering structured credit and treasury-backed assets according to TokenMetrics.

Investor Implications: Beyond the Listing Hype

For investors, the 2025 data serves as a cautionary tale. CEX listings should no longer be treated as validation signals but rather as risk points requiring rigorous due diligence. As stated by TokenMetrics, "The post-listing underperformance of 83% of CEX tokens in 2025 highlights the need for investors to prioritize token utility, network adoption, and regulatory compliance over short-term liquidity events" according to the report.

Moreover, the market's shift toward value creation metrics suggests that future success will hinge on projects' ability to demonstrate real-world utility and sustainable adoption. Tokens with high velocity or speculative narratives are likely to face continued headwinds, while those integrating structured tokenomics and institutional-grade infrastructure will attract long-term capital.

Conclusion

The 2025 CEX token landscape reveals a market at a crossroads. While liquidity events remain critical for price discovery, they are no longer sufficient to ensure value creation. The underperformance of speculative tokens and the rise of RWA and utility-driven models signal a broader industry shift toward fundamentals. For investors, the lesson is clear: the next era of crypto success will belong to projects that prioritize long-term ecosystem building over short-term liquidity extraction.