Memento Research analyst, known as Ash, challenged the common perception about listings on centralized exchanges (CEX). According to him, a CEX listing does not necessarily mean the exchange receives a large portion of the token supply, thereby causing selling pressure after trading begins. An analysis of past listings on Binance provides a clearer picture of asset distribution and their usage mechanisms.
Myths About CEX Listings
The most widespread myth is that the exchange automatically receives a significant share of the token supply at listing and then sells these tokens, creating downward price pressure. This notion is fueled by rumors and frequent community discussions, but as the researcher notes, the data contradicts this simple explanation.
According to the analyst, "a major misconception is related to where exactly these assets go." This phrasing indicates that the real distribution mechanics differ from intuitive expectations and require detailed analysis of listing publications and terms.
Actual Data on Binance Listings
A close look at past Binance listings shows that the volume of tokens directly tied to the listing process is usually small relative to the project's total supply. This disproves the idea of widespread large allocations to the exchange.
- In most cases, the total token volume at listing does not exceed 5% of the total supply.
- For large projects with high fully diluted valuation (FDV), this share is often below 1%.
- Larger amounts are seen in mid-tier cryptocurrencies, where relative shares can be higher.
Furthermore, the analysis shows that allocated tokens are typically not intended for immediate sale but for market support — a key point when assessing listing-related risks.
Where Tokens Go at Listing
Token distribution at listing is often aimed at user engagement and supporting the project’s ecosystem. Instead of serving as a one-time fee to the exchange, these assets return to the project economy through various mechanisms.
- Rewards and incentives via Launchpool and similar programs.
- Programs for token holders and promotional campaigns, including airdrops.
- Funds to support market liquidity during initial price discovery.
Objectives of Token Distribution
According to the research, token distribution at listing pursues several practical goals that influence market behavior in the early trading phase. These measures focus not on short-term monetization by the exchange but on more structured supply development.
- Expanding the circle of early holders through incentives and programs.
- Establishing baseline liquidity for initial trading.
- Reducing volatility during initial price discovery and limiting insider influence.
Why This Matters
For miners, even those with modest equipment, understanding listing mechanics helps evaluate speculative risk. Since tokens allocated at listing are often used to support the market and expand the holder base, this affects price movement character in the first trading days and does not necessarily lead to immediate selling pressure.
If you follow coins planning listings on major platforms, it’s useful to consider not only the listing itself but also the volume of allocated tokens and their distribution mechanisms. These details provide a clearer picture of how quickly and significantly liquidity and volatility may change.
What to Do?
Practical steps are straightforward and suitable for miners with any number of devices: don’t rely on rumors and verify official listing terms. Study the project’s public documents and exchange announcements to understand what portion of tokens is allocated and for what purposes.
- Follow official news from the project and exchange, not social media rumors.
- Check if tokens are used for Launchpool, airdrops, or liquidity support — this changes market selling risk.
- Don’t make trading decisions based solely on the listing fact; assess the volume of allocated tokens and their distribution scheme.
This cautious approach helps reduce the chance of unexpected losses due to misinterpreting listing information and makes position management more predictable even during the initial trading phase.
