Arthur Hayes tells crypto projects paying CEX listing fees is not worth it

Arthur Hayes, founder and ex-CEO of BitMEX, is telling crypto projects to stop wasting their money on centralized exchange (CEX) listing fees.

The idea that paying millions to get listed on major exchanges will make your token price pump is just a myth, he says.

Instead, it’s the big CEXs, like Binance, who are getting richer while your token sinks. He calls the current state of the market a ‘PvP’ (player vs. player) cycle, where it’s every project for itself.

Founders believe that getting listed on a CEX like Binance will skyrocket their token’s value. Hayes disagrees, saying the numbers don’t support this theory. 

The real winners are venture capitalists (VCs), who cash out early while retail investors are left holding bags of worthless tokens.

Data proves CEX listings don’t deliver

Let’s look at the numbers. Hayes analyzed 103 projects listed in 2024, across major CEXs. The data show tokens still slumped after listing, despite paying massive fees to get on these exchanges. According to him:

“Regardless of the exchange, tokens have not pumped. If you paid exchange listing fees hoping for an up and to the right chart, soz.”

Projects are being launched with sky-high fully diluted values (FDVs) but a low circulating supply, making post-launch price drops almost inevitable.

It’s simple: these high valuations don’t hold up, and token prices go straight down the drain. Binance-listed tokens might do a little better compared to others, but on the whole, their prices still drop.

The VC scam and overvalued tokens

VCs are part of the issue too, according to Hayes. These firms push for high FDVs because it benefits their bottom line, not the project’s future success.

They’re in the game to make money off management fees and show inflated portfolio values. For VCs, the bigger the FDV, the better it looks for their funds.

And they couldn’t care less if your token tanks post-launch. Hayes breaks it down further. He says VCs want to delay a project’s liquidity event as long as possible, encouraging founders to keep doing private rounds at ever-increasing FDVs. 

Why? Because it makes their portfolios look good on paper. But when the project finally lists on a CEX, the token crashes hard. 

That’s when the bubble bursts, and reality sets in. Most of these projects aren’t delivering any real value to users, and the FDVs were never justified in the first place. In Hayes’ words: 

“Most of you are just pure chumps! That’s why those drinks were free at the conference networking event… lolz.”

Binance isn’t a magic fix

Hayes doesn’t let Binance off the hook either. He admits that Binance CEO Changpeng Zhao (CZ) is good at what he does, but paying through the nose for a Binance listing? He said:

“Trading an arm and a leg for a Binance listing ain’t worth it.”

Binance charges up to 8% of a project’s total token supply just to get listed. Most other CEXs charge between $250,000 and $500,000 in stablecoins.

On top of that, the exchange requires projects to stake up to $5 million worth of BNB as a deposit, which is returned if the project delists. Other CEXs require deposits ranging from $250,000 to $500,000.

Binance also mandates that projects spend up to 8% of their token supply on on-platform marketing campaigns like airdrops. 

At the bottom end, CEXs require between $250,000 and $1 million in marketing spend. When you add it all up, a Binance listing could cost up to 16% of your total token supply plus a $5 million BNB deposit.

That’s an insane amount of money for a listing that doesn’t guarantee a price pump.

So, what should projects do instead? Hayes points to Auki Labs as an example of how to buck the trend. Auki listed their token on decentralized exchanges (DEXs) first, avoiding the steep costs of CEX listings. 

Instead of blowing money on fees, Auki Labs saved $200,000 by listing on Uniswap V3 first, then following up with a CEX listing on MEXC.

Meanwhile, at the top end, Binance charges an 8% listing fee in tokens. Add to that a deposit of $5 million worth of BNB and another 8% in tokens for on-platform marketing, and the total cost is jarring.

For most projects, that’s just not sustainable. Even smaller CEXs still charge between $250,000 and $500,000 in listing fees, plus similar deposits and marketing spends.