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CoinEx Speaker Series

CoinEx: Focusing on Value Discovery and Gathering High-quality Projects: The Core Competitiveness of Crypto Exchanges

2021-10-26 10:14:43

The field of crypto investment never lacked stories of massive returns or incredible token growth. However, the market has also taught us that huge profits are only available to a handful of investors. Investors are tested in terms of market insights and the investment mentality as they try to remain calm amidst market swings and attempt to invest in high-quality assets despite the many trends and confusing news.

The market abounds with countless projects, including both the good and the bad. The independent selection of a large number of promising projects is very challenging for most investors. However, there are also shortcuts. For most crypto users, trading platforms are the first step in crypto investment. By selecting projects on a reliable platform with strict listing criteria, the investment process becomes simpler, safer, and more efficient. 

The token-listing strategy determines the growth potential

In the traditional capital market, stock exchanges compete for high-quality underlying assets (e.g. Apple and Amazon on Nasdaq) because they will attract great coverage, plenty of users, and massive funds. The same rationale also applies to the crypto market - For crypto exchanges, the most important core competitiveness also lies in high-quality assets.

Compared with hard power such as product strength and technical capacity, token-listing strategies and project selection can be regarded as the soft power of exchanges, which is the moat of crypto brands. Soft power tests an exchange’s market insights and may even reflect its values, which determines its future course of development. Here, the well-noted “Coinbase effect” is a great example: Whenever Coinbase announces upcoming projects, the tokens of such projects will soar, which reflects the level of reputation and user trust Coinbase built through its rigorous screening mechanism and acute market insights.

Meanwhile, in the crypto space, there are also plenty of platforms that have achieved rapid growth by attracting users through clout-chasing. For such platforms, the only concerns in token-listing are popularity and speed, and the quality and potential of the projects are irrelevant. Although such an approach may bring profits and user traffic in the short term, ultimately, junk tokens are harmful to users as well as the reputation of the platform. As a result, the rapid growth of such platforms cannot be sustained as they often suffer from drastic declines.

Fortunately, in the crypto market, an increasing number of new first-tier exchanges have emerged, in addition to the leading platforms with a strong track record for token listing, such as Coinbase. Focusing on finding high-quality assets, new players like CoinEx have gradually built a high level of user trust and have become the essential platform for value discovery in the crypto sector.

CoinEx and its “investment-bank-like token listing”

Aimed to gather innovative digital assets, CoinEx has demonstrated a proven track record for finding high-quality assets. CoinEx now supports nearly 370 types of tokens, covering star projects and trending segments such as DeFi, NFT, GameFi, Solana, Layer2, etc. 

Haipo Yang, the founder of CoinEx, once said that the listing of tokens should be regarded as a product. In terms of token-listing, the exchange aims to focus on quality while pursuing well-roundedness. Fully committed to such a principle, CoinEx is never blindly after quantity, trends, or exclusiveness. With all the mechanisms and review teams as well as the diversified considerations for project assessment, CoinEx has created a highly rigorous funnel-shaped screening process.

During the review process, firstly, CoinEx Institution will collect information through multiple channels for the preliminary screening of potential projects. Then, it will analyze and rate the projects from various aspects, spanning project background, team, technology, concept, level of innovation, economic model, prospects, and risk assessment. Projects that have obtained high scores in the preliminary screening will enter the next round of careful review, involving teams specialized in operation, business affairs, marketing, technology, and product. Only projects that pass all the reviews will be officially listed on CoinEx.

CoinEx has always remained committed to the dual review mechanism by CoinEx Institution and the Listing Committee, regardless of how trending a project might be. During the reviews, a project will be eliminated if it is deemed risky in one aspect. As such, CoinEx may be slower than some of its peers in terms of token listing. However, with such efforts, the exchange has minimized the risks and ensured that CoinEx only lists outstanding projects with great potential.

In a market where everyone calculates his profits by seconds and looks for a quick buck, CoinEx has remained committed to its original aspiration despite all the temptations. Part of the reason for such a commitment is that the CoinEx team is keenly aware that chasing after trending topics will not work over the long run. Instead, the exchange aims to be a talent scout who finds promising projects and grows with them.

Following the “investment-bank-like token listing”, CoinEx also offers great “post-investment” services. Unlike platforms that focus on speculation and arbitrage, CoinEx attaches greater importance to the long-term value of projects. As long as a project shows future potential, CoinEx is willing to be its strong supporter even if it lacks popularity and user traffic at the moment. Meanwhile, the exchange’s market insights have also been proven right: After getting listed on CoinEx, many projects have received mainstream attention and gained wide market recognition.

Those who succeed in life are often extremely good at one thing. In this sense, CoinEx has taken token-listing to a new level. Although the identification of high-quality projects is challenging, in the long run, it is also the core competitiveness of crypto exchanges. Exchanges that continue to help investors gain access to first-class assets and function as an important platform for value discovery will have the opportunity to create new market legends. Committed to steady progress, CoinEx is surely one of the most promising players in the market.

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