Welcome to our token launch series, helping founders launch with clarity and confidence. In this blog, we break down CEX vs DEX, exchange tiers, and how to choose the right launchpad for your TGE.
Token launches aren’t just about hype, they’re about execution. And if you’re not thinking strategically about exchanges, launchpads, and liquidity right from the start, you’re already behind.
Preparing for a Token Generation Event (TGE) is a critical phase for Web3 startups. We’ve worked with hundreds of teams navigating this exact stage and that’s why we’re sharing this guide to distill insights from our team of experts.
In this play-by-play from our Token Launch Bootcamp, I break down what actually matters when listing your token — from CEX vs DEX strategy to exchange tiers, launchpad traps, and everything in between.
Whether you’re prepping your TGE or still shaping your roadmap, this guide will help you avoid common mistakes and launch with conviction.
DEX or CEX? Choose Like a Strategist, Not a Maximalist
One of the first major decisions founders face is whether to launch on a centralized exchange (CEX), a decentralized exchange (DEX), or both. It’s crucial to understand the distinct advantages and disadvantages of each.
Our hot take: cut out tribalism. Every route – DEX, CEX, or both – comes with tradeoffs. Let me break it down like this:
Centralized Exchanges (CEX)
- Pros: Larger user base, easier user onboarding due to regulated systems and lower barriers to entry, significant liquidity and volume, and greater visibility and exposure for the project.
- Cons: Potential for high listing costs depending on the tier, custodial risks as the exchange holds custody, and a potentially long and stringent due diligence process due to exchange requirements.
Decentralized Exchanges (DEX)
- Pros: Fully decentralized, not dependent on a central authority, generally easier to get listed, listing is fully within the team’s control, and reduced counterparty risk.
- Cons: Much lesser liquidity compared to a CEX listing, challenging for users unfamiliar with onboarding processes (like on-ramping and off-ramping), and a higher risk of price manipulation. The project must actively manage liquidity pools — deciding how much to seed, when to rebalance, and how to handle volatility.
In short:
- CEX = visibility, volume, and hoops to jump through
- DEX = flexibility, speed, and liquidity responsibility
What matters is your team’s ability to manage liquidity, timelines, and optics. Not everyone should start on-chain first, especially if a Tier 1 listing is the goal.
The Exchange Tier Game (and Why It’s Not Always Worth Playing)
Centralized exchanges are often categorized into different tiers (Tier 1, Tier 2, and Tier 3) based on factors like user experience, liquidity, and trust levels. Understanding the characteristics of each tier is vital in strategic planning. Here’s a breakdown:
Tier 1 Exchanges
These are highly established, global exchanges with vast user bases, huge liquidity, and high trust levels. Listing on a Tier 1 exchange can generate significant hype and traction. However, getting listed is challenging. There isn’t a fixed timeline, due diligence evaluation happens on a case-by-case basis, plus timelines and fee structures are often unclear. Projects might even need to amend their tokenomics to meet requirements. Some Tier 1 exchanges require an exclusive initial listing, while others – particularly those focused on localised markets such as US and Korea – prioritize secondary listings due to regulations.
Tier 2 Exchanges
These are medium-sized, established exchanges with decent trading volume. Each has a unique user base, which projects should aim to complement. Tier 2 exchanges typically have a set due diligence process, making them a more workable solution. However, associated fees might be a potential downside. Fee models vary, some are case-by-case (involving stables, marketing tokens, or security deposits), others have publicized fixed fees. Due diligence is strict and variable. Tier 2s generally prefer initial listings over secondary ones, which focus primarily on total trading volume.
Tier 3 Exchanges
These are younger exchanges with smaller, niche communities, often catering to specific countries or regions with strict regulations. They can be valuable for targeting localized user bases. Undeniably, they are more affordable, however, the main drawback is significantly lower volume. Due diligence is typically less stringent as they aim to onboard more users alongside project listings.
Tier 1s? Dream scenario. We get it. But here’s what founders often miss:
- There’s no clear cut timeline or price tag, only mystery and negotiations.
- They might even ask you to change your tokenomics.
On the other hand, Tier 2s offer structure, while Tier 3s give you regional reach. The key is knowing where your project fits and when you’re really ready.
What Exchanges Actually Look For
While each exchange has its specifics, most focus on common criteria when evaluating a project for listing:
- Project Fundamentals: What is the project’s unique selling point (USP)? Does it have a product, traction, and an engaged community/user base? It shouldn’t just be a copy of an existing project.
- Legal and Regulatory Compliance: Projects must have a legal entity established and clarify the token’s usage. Compliance depends on the exchange’s licenses and onboarding processes.
- Team and Advisors: The team’s experience is crucial for executing the project’s roadmap.
- Strategic Partnerships, Investments, and Backers: These relationships build confidence and trust in the team and project. They should align with the project’s fundamentals and roadmap goals.
- Tokenomics and Utility: The token should have a clear model tied to the project’s revenue, not just speculation. The token should complement the revenue, not be the main source. Exchanges seek long-term sustainability.
- Community Support: The project needs to demonstrate how it can convert its community into actual users of the product.
- Sustainable Revenue is Paramount: A sustainable revenue model is one where the project can hit its milestones and avoid losing runway even without relying solely on the token’s appreciation value. This revenue can be from off-chain sources; it doesn’t need to be purely on-chain. Exchanges look at how product metrics translate into token users, such as through subscription models or application users (DAUs, MAUs).
In short, it’s not just TVL or telegram followers. Most listings hinge on:
- A real product (not a pitch deck)
- A legal setup with clear token utility
- Audited contracts
- Investors or partners who bring credibility
- And above all: a sustainable business model that doesn’t depend on the token to survive
Exchanges want tokens that complement revenue, not replace it.
Don’t Sleep on Launchpads, Just Pick the Right One
Launchpads act as a bridge, they connect projects with communities outside their existing user base and generate traction. Do not go to Launchpads expecting another raise, that’s just selling pressure on day 1. Here’s a high-level checklist for you:
- Choosing Launchpads: Select launchpads whose community aligns best with your project’s nature and target audience. Evaluate the value they bring beyond just fundraising.
- Allocation & Selling Pressure: Ensure the chosen launchpad can fully sell the project’s allocation. Have backup plans if they cannot. Consider using minimally 3-4 launchpads to diversify and help manage selling pressure.
- Coordination: Some launchpads require listing on specific exchanges. Projects must factor this into their exchange application process. When discussing with exchanges, mention ongoing launchpad discussions, including allocation details, as this aligns with the exchange’s focus on tokenomics and funding rounds. Exchanges care more about the allocation given to launchpads and its alignment with overall funding than which specific launchpad is used.
Launchpads aren’t just for retail cash grabs. The good ones bring community, distribution, and early believers.
Pro tip: List on launchpads that match your audience, and make sure your messaging fits their community vibe.
Avoid the DEX-First Trap
Yes, it’s fast. Yes, it’s easy. But launching on a DEX too early could kill your shot at Tier 1 or 2 listings. Unless you’re a meme coin or have hyper-local traction, build your story before you build your pool.
Launch Sequencing Matters
Whether it’s DEX → CEX, or a co-listing across platforms, the best teams:
- Work backward from a clear launch date
- Start outreach to exchanges and launchpads 2-3 months out
- Plan announcements like a campaign, not a checklist
Listing Strategy: Initial, Secondary, or Co-listing?
The timing and combination of listings significantly impact outcomes. Let’s break it down:
- DEX First, CEX Later: If the goal is listing on higher-tier CEXs (Tier 1 or 2), launching on a DEX first is generally not recommended. These exchanges primarily evaluate secondary listings based on volume and on-chain statistics; these are difficult for a new project to build through a DEX alone. On top of that, many lack the technical and strategic expertise to manage liquidity pools, resulting in poor execution and bad token optics. An exception might be made for projects targeting a specific localized user base on a Tier 3 CEX to complement a DEX launch.
- Initial Listing (CEX): Many projects aim for an initial listing directly on a CEX, often combined with a public sale via a launchpad. The due diligence process for CEX listings, including coordination with launchpads, can take considerable time, potentially up to 2 months.
- Secondary Listing (CEX): As mentioned, getting a secondary listing on Tier 1 or Tier 2 CEXs is very difficult or nearly impossible for most projects. Selected Tier 1’s only do secondary listings due to regulations and licenses. Their evaluation for secondary listings focuses primarily on trading volume. Meme projects are an exception, sometimes they are able to get secondary listings on T1/T2 due to a lack of traditional due diligence requirements.
- Co-listing (CEX and possibly DEX): This is a common approach. It involves launching on a CEX alongside a DEX listing. The key is managing the timeline so that the CEX listing coincides with the completion of launchpad activities. Diversification across platforms (including minimally one “brand name” CEX and a smaller one) is important.
What It Is Really Going to Cost You
Forget the sticker price. Exchange fee structures are variable and depend heavily on market conditions. Costs can include:
- Technical Service / Integration Fee: Fees for services provided by the exchange, often paid in stables (like USDT/USDC).
- Marketing Tokens: An allocation of project tokens provided to exchanges/launchpads for marketing activities like launchpool, airdrops, trading competitions, or AMAs.
- Security Deposit: Some exchanges require a security deposit, often with specific terms tied to project performance metrics (e.g. user conversion targets, trading volume, listing price protection). If targets aren’t met, the deposit may be confiscated; otherwise, it’s refunded. Some exchanges now primarily use this model.
- Liquidity: This is a separate budget item from listing fees and needs careful planning with market makers across all chosen platforms.
It’s also worth noting that everything costs more in a bull market. Due to volatile market conditions, it is highly recommended to apply for multiple exchanges and secure a variety of offers and the “luxury of choice.” Not applying means no chance to evaluate and compare opportunities.
The Pre-TGE Checklist (Don’t Skip This)
Before approaching exchanges and launchpads, founders should honestly evaluate their readiness across several key areas. As a team, ask yourselves these tough questions:
- Budget: Do you have sufficient funds raised for runway, liquidity management, and marketing activities required by exchanges/launchpads?
- Product: Does your product have sufficient traction? Can the team grow and scale the user base in line with product milestones?.
- Legal and Compliance: Is the legal entity established? Is the token’s usage clear? Are you prepared to meet diverse exchange requirements?.
- Security Audits: Have all token contracts been audited before listing? Audits are essential for both CEX and DEX listings and are reviewed by exchanges.
- Market Makers: Are your liquidity management strategies planned? Have you discussed provisioning liquidity across all platforms (DEX/CEX) with market makers to avoid issues like arbitrage trading?
- Audience: Is there key engagement with your community to drive demand and ensure long-term sustainability?
Focus on Fundamentals and Go-to-Market Strategy
Successful launches stem from strong fundamentals and a well-executed strategy.
- Revenue Model: Build a long-term sustainable revenue model with multiple streams that isn’t solely reliant on the token’s volatile value. The token should add value, not be the value.
- Token Utility: Ensure clear token utility and demand tied to the project’s revenue. Effectively educate the community on the token’s use cases.
- Userbase & Product: Continuously engage your community through various campaigns and focus on converting community members into active product users. Showcase product growth metrics and revenue sustainability.
- Go-to-Market Timeline: Plan your launch timeline by working backward from your target launch date. Begin reaching out to potential partners (exchanges, launchpads) about 2-3 months prior to build momentum and assess readiness.
- Announcement Strategy: Coordinate announcements across your project, launchpads (e.g., IDO), and exchanges to build excitement and momentum. Staggering announcements can help maintain interest.
- Diversification: Avoid listing on just one or two platforms. Diversifying listings across multiple platforms is a stronger strategy.
Pre-TGE Checklist Essentials
Beyond the strategic elements, founders should have a practical checklist for the final preparations before launch:
- Ensure total launch trackers are ready.
- Complete token registration on platforms like CMC, CoinGecko, and Trust Wallet.
- Set up DEX pools and plan for liquidity incentives.
- Ensure market maker accounts are set up and coordinated with exchanges.
- Prepare all necessary documents for onboarding processes required by different exchanges, launchpads, and entities.
By focusing on project fundamentals, strategic planning, community building, and careful execution across both exchange and launchpad strategies, founders can navigate the TGE process more effectively and increase their chances of a successful launch.
Final Word: Focus on Fundamentals
The market will swing. Launch fees will spike. But the teams that win? They build revenue-first, community-aligned, legally sound projects. And, they plan every move before the spotlight hits.
Need guidance? We got you.
