Author

Topic: How the launch on Centralized exchange matematically works? (Read 132 times)

legendary
Activity: 3878
Merit: 1238
Owner at AltQuick.com & FreeBitcoins.com
Just ask an exchange if they will list the project.

It's easy peasy and not rocket appliances.

(I own a Bitcoin/Altcoin exchange)
hero member
Activity: 994
Merit: 520
🇵🇭
Hello, I would like to ask, how the add crypto token to Centralized exchange (CEX) works?
I know you need to apply at first and if they think your project have good qualities, the will add your crypto to applied centralized exchange but I am interested how does it works mathematically.

You will need to provide the token of yours and equivalent token that you will pair on it such as stablecoins (USDT,Bitcoin and other asset). It’s not the same with DEX that you need a 1:1 value both pair since you will only need to provide initial liquidity and the rest of the order will be setup by the market maker bot of CEX.

The CEX itself will spread your liquidity that you will provide for the pair and you will be the one that will decide on what’s the minimum price you will start to distribute your liquidity for your pair. Exchange is using market maker to create fake trades. I’m not sure if anyone can provide you an exact mathematical explanation on how market maker works on CEX unlike DEX which everything is transparent on the blockchain.
member
Activity: 278
Merit: 25
Does anyone know something more about it?

Generally exchanges ask you for some money to list it. Not all ICO(s) or IPO(s) can offer all the money so they are asked for some part of it and the tokens later on automatically adapt equivalent price.
legendary
Activity: 1582
Merit: 1284
After COIN or TOKEN is listed in the CEX database, a central server manages all buying and selling transactions according to the orders in memory and the available trading pairs. Sometimes the currency has a reserve, so that if there is a large supply, the reserve is sold for USDT or BTC if the currency fails to maintain demand and there is no There is a sufficient supply of USDT and BTC and the price decreases and vice versa. The bots work to complete everything and show the market price as an average of all these prices. CEXs/whales can manipulate the price by creating a fake offer. If they know that there is no reserve or large demand, then the price decreases and vice versa. coins or tokens with Low market capacities to be PUMP/DUMP due to that.
jr. member
Activity: 50
Merit: 20
Does anyone know something more about it?
jr. member
Activity: 50
Merit: 20
I know that. I asked just about launch...
member
Activity: 514
Merit: 72
Crypto - Fiat Exchange
In a CEX you make an offer. In a DEX you take the price that's given. Usually, when a token is listed on a new exchange, it already is listed somewhere else and that price is used as a starting point, it then changes based on the offers made by market participants.
jr. member
Activity: 50
Merit: 20
Hello, I would like to ask, how the add crypto token to Centralized exchange (CEX) works?
I know you need to apply at first and if they think your project have good qualities, the will add your crypto to applied centralized exchange but I am interested how does it works mathematically.

When you launch token on decentralized exchange(DEX), you will add for example amount of 1 000 your tokens and 1 000 of BNB. And then is price calculated youtomatically by trades.
I know how does Bid-Ask works in CEX but how works launch?

You will have for example 1 000 000 of tokens and you would like to add 900 000 of them to CEX. You would like to launch in price 1 token = 1 usd. So you will send these 900 000 token to CEX workers and they will give them for price of 1 usd, and when all tokens will be sold in this price, users can offer them for higher and other buyer can buy them?

Thank you for explanation.
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