The Centralized Exchange Monopoly: A Barrier to True Decentralization and Community-Driven Liquidity in Token Launches

Authors

  • Lars J. Mikkelsen Freelance Academic, Denmark

DOI:

https://doi.org/10.36676/sjmbt.v3.i1.63

Keywords:

CEX, DEX, Common crypto projects, Decentralized liquidity provisioning

Abstract

Despite the ethos of decentralization in blockchain ecosystems, token launches frequently face centralization bottlenecks, primarily through centralized exchange (CEX) listings. This research explores how bypassing community-provided liquidity pools (LPs) at launch and prioritizing CEX listings undermines decentralization. We analyze the adverse effects on community empowerment, price discovery, and token economics. The paper advocates for decentralized liquidity provisioning models to ensure equitable growth and sustainability.

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Published

2025-04-26

How to Cite

Lars J. Mikkelsen. (2025). The Centralized Exchange Monopoly: A Barrier to True Decentralization and Community-Driven Liquidity in Token Launches. Scientific Journal of Metaverse and Blockchain Technologies, 3(1), 76–83. https://doi.org/10.36676/sjmbt.v3.i1.63
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