Encryption projects should focus on products and users to avoid the trap of high listing fees.

2025-07-16 16:57:51

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Encryption projects should focus on product development and user rise, rather than pursuing high listing fees.

In the current encryption market, newly issued tokens perform poorly for retail investors, while venture capital firms remain unaffected. This has led to a series of high fully diluted valuations ( FDV ) but with extremely low circulation projects emerging. After issuance, these tokens often see a significant price drop.

An analysis of 103 projects listed on major trading platforms in 2024 found that, regardless of the platform, token prices did not rise significantly. On the contrary, most token prices fell. Even listing on mainstream platforms like Binance does not guarantee an increase in token prices.

Project parties often need to pay high fees for listing, including direct listing fees, deposits, and mandatory marketing expenses. Taking Binance as an example, listing fees can be as high as 16% of the total token supply, plus a $5 million BNB deposit. However, data shows that these high costs do not bring corresponding returns.

Therefore, it is recommended that the project party:

Focus on product development and user rise, rather than pursuing high listing fees for exchanges.
Consider issuing tokens on the DEX at a lower valuation, allowing users to participate at a lower price.
Develop a more equitable token allocation plan to align the interests of the team and investors.
Use the saved listing fees for product development and user incentives, forming a positive cycle.
Focus on core metrics such as daily active users rather than overly focusing on exchange listings.

In conclusion, project parties should ensure that users and token holders can benefit from the project's success, rather than wasting a lot of resources on high listing fees. Focusing on building valuable products and services is the key to the success of an encryption project.

![Arthur Hayes to encryption project parties: Rather than trying every possible way to get on Binance, it's better to go directly to DEX](https://img-cdn.gateio.im/webp-social/moments-26f96768959e2f49756fdb9451372658.webp01

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