The Dilemma of Coin Listing on Crypto Exchanges and Future Solutions

In the traditional financial sector, companies go public mainly for refinancing to expand production and gain endorsement, thereby enhancing their competitive edge. However, the cryptocurrency industry faces a starkly different reality. The vast majority of projects are not profitable, and expanding production may lead to even greater losses. As a result, the primary purpose of listing a coin often becomes an exit channel for founders, investors, and employees.

In this case, crypto projects enjoy the benefits of traditional listings without bearing the corresponding responsibilities. The lack of strict review by sponsoring institutions means that many founders are unaware of the seriousness of listing a coin. Anonymity and the absence of future reproduction plans have led some projects to adopt improper means to achieve coin listing.

What is even more concerning is that these actions are difficult to punish. For the project parties, the most severe consequence may be just being blacklisted by the exchange, but the profits remain considerable. The misconduct of exchange employees is also difficult to prove, and the privacy of crypto assets makes tracking extremely difficult. As for the exchange itself, listing inferior tokens may just mean earning a little less money, and it does not cause substantial losses.

Moreover, after a cryptocurrency project is listed, there are usually no strict financial disclosure requirements. Project teams can freely allocate the proceeds from selling off their holdings without having to reinvest the funds into actual production. This "bleeding cycle" further exacerbates the problems within the industry.

In the face of these challenges, one possible solution is to completely change the coin listing strategy. The exchange could consider establishing two platforms: a main site and a community site. The main site would gradually narrow the scope of coin listings, even considering the elimination of some existing tokens. The community site would adopt a DEX model, allowing projects to list coins freely, but the value discovery would be entirely determined by the community.

Although this model may cause growing pains in the short term, it is expected to reverse the industry atmosphere in the long run. It will force project teams to focus on developing truly valuable applications rather than treating coin listings as the finish line. At the same time, it can effectively prevent low-quality projects from gaining attention through improper means.

Only by respecting human nature and following business rules can the cryptocurrency industry emerge from its current predicament and cultivate truly revolutionary applications. This requires the courage and foresight of industry participants, but it could also be a key step in reshaping the entire ecosystem.