Crypto Exchange Listings Outperform Stocks With 80% Return

Cryptocurrency listings on centralized exchanges (CEXs) have demonstrated superior performance compared to traditional stock listings, despite recent criticisms regarding the potential for manipulation in token listings on these platforms.

The controversy surrounding token listing procedures on CEXs intensified after Changpeng “CZ” Zhao, co-founder and former CEO of Binance, highlighted flaws in the process following the underwhelming performance of some token listings.

According to an April 3 report by CoinMarketCap, crypto exchanges have outperformed traditional stock exchanges in terms of listings with positive returns on investment (ROI) and average ROI. Over the past 180 days, crypto exchange listings achieved an average return of over 80%, surpassing major traditional stock indexes such as the Nasdaq and Dow Jones, as well as Bitcoin (BTC) and Ether (ETH).

This 80% return represents the average performance of all listed tokens by the seven major exchanges, including Binance, Bybit, Coinbase, OKX, Bitget, Gate, and KuCoin. Additionally, 68% of crypto exchange listings reported a positive ROI, outperforming the New York Stock Exchange’s 54% and the Nasdaq’s 51%.

The data indicates that crypto exchanges have made significant progress in refining their listing processes. Cryptocurrencies listed on CEXs typically experience high demand from investors, as these exchanges provide substantial new liquidity that can enhance the coins’ price performance post-listing.

Token-listing criteria on CEXs gained attention in November 2024 when Tron founder Justin Sun alleged that Coinbase requested $330 million in total fees to list Tron (TRX), a surprising claim given Coinbase’s assertion that it charges no fees for listing new cryptocurrencies.

Recent investor dissatisfaction with some token listings may be due to high profit expectations, given the significant upside of numerous CEX-listed tokens. However, the returns of a cryptocurrency after listing are influenced by broader market conditions, as noted by a Binance spokesperson. The spokesperson added that as the industry matures, there is reduced volatility compared to earlier cycles, reflecting greater stability and long-term sustainability in the crypto market.

Binance, the world’s largest crypto exchange, listed 77 cryptocurrencies throughout 2023 and 2024, with a 0% delisting rate. In an effort to make the listing process more decentralized, Binance announced a community voting mechanism for token listings on March 9.