How would you explain what deposit to list entails to a novice? And would you encourage a novice to participate in these events?
I Think almost all exchanges have guidelines about deposit to list, especially whenever they announce the event.
I would not encourage anyone to participate in them. It's just a marketing stunt.
Deposit to list
campaigns is obviously a marketing strategy. But that doesn't mean it will not beneficial for novice in crypto. Even though if the "deposit to list" campaign fails, you will be refunded 100% or more than what you have deposited. It is true in Bitget.
*If (token) liquidity requirements fail to be met, all deposits will be refunded. And participants can get an extra 5% cashback of their total deposit amount. The maximum individual extra refund is capped at $50 in (token) on a first come first served basis.
Source:
https://www.bitget.com/support/articles/12560603794676
I would not encourage anyone to participate in them. It's just a marketing stunt.
Yes , the fact is that the CEX may choose not to list the coin or token after their previous claims of listing the coin at the appointed time or may not even list at all. They exploit the fact that it is done to know if the project is a serious or just another scam project.
They will only not list the coin or token if the requirements fail to be met. It's impossible not to list them if they met the requirements because the reputation of CEX is one of the most important key to gather traders and investors. So if ever they fail, you will be refunded for what you deposited and it doesn't mean that this project is a scam.