In 2024, I launched HTP Tokens after extensive research and with the support of a large, experienced team. Despite my 25+ years in the online payments industry, including deep experience in marketing and payment systems, I was surprised by the challenges encountered when listing tokens on centralized exchanges (CEX).

This article serves as a cautionary tale for other token creators considering the IPO route on CEX platforms. The lessons I learned were hard-earned and should prompt you to think twice before committing your funds to a CEX listing.

The Pitfalls of Listing on a CEX

One of the first missteps in launching HTP Tokens was selecting CEX platforms for listing. Here's what I observed:

1. Upfront Fees with Minimal Follow-Through
   CEX platforms charge significant fees for listing, yet their interest in supporting your token often ends once payment is received. Account managers, who are supposed to assist with the process, are frequently undertrained call center workers relying on templated responses.

2. Misleading Automated Market Makers (AMM)
   Documentation on AMM was vague and often unusable. These systems seemed designed to extract additional funds from token creators under the guise of creating a "market." In reality, AMMs often eroded the allocated budget without producing meaningful results. When questions were raised, token creators were met with boilerplate responses urging them to inject more funds.

3. Lack of Genuine Marketing Support
   Despite promises of robust marketing efforts, many CEX platforms fail to deliver results. They have no financial stake in the token’s success and often exaggerate claims about social media followings and "active trading" members.

4. No Skin in the Game
   If a CEX truly believed in its services and its ability to offer a genuine commitment to token creators, it would take payment in the tokens it lists. The fact that most CEX platforms insist on payment in fiat or other established cryptocurrencies shows a lack of confidence in the projects they onboard. If a CEX is unwilling to have skin in the game, you should seriously consider whether this investment of your funds is a sound business decision.

A Better Approach for Token Launches

Token creators may achieve better results by avoiding CEX listings altogether and focusing on decentralized exchanges (DEX). The money saved can be used more effectively to:

• Build liquidity pools.
• Invest in targeted social media and direct marketing campaigns.
• Partner with a dedicated crypto marketing agency that specializes in token promotions.

DEX platforms like Uniswap offer unparalleled advantages:

• Larger audiences and higher trading volumes than any individual CEX.
• Free listing opportunities, with funds instead going toward liquidity and promotion.
• Better integration with platforms like CoinGecko and CoinMarketCap, providing superior visibility and connectivity.

Think about this for a moment: why pay hefty fees to a CEX with no guarantee of results when you can list on a DEX for free, access a larger audience, and retain full control of your token's success?

Why Token Creators Stay Silent

One of the reasons these issues are not widely discussed is the restrictive nature of contracts with CEX platforms. These agreements often include provisions that act as de facto gag orders, preventing token creators from speaking out about their experiences. Fear of delisting or legal action for alleged reputational damages keeps many silent.

A Call for Transparency and Change

It’s time for the crypto community to demand greater transparency and accountability from CEX platforms. Token creators deserve better, and the industry as a whole will benefit when token launches are driven by fairness and genuine support, rather than exploitative practices.

Final Thoughts

For token creators embarking on their journey, let this be a warning. Do your due diligence, weigh your options, and consider whether a DEX listing and direct marketing efforts may serve your goals more effectively than a CEX listing.

If CEX platforms want to earn the trust of token creators, they need to show genuine commitment by taking payment in the tokens they list and ensuring their success. Until then, DEX remains the smarter, more effective choice for new tokens.

By sharing this experience, I hope to spark a broader discussion about the practices of CEX platforms and encourage token creators to take a smarter, more strategic approach to their launches.