Seeing several CEX events that encourage investors to participate in deposit to list events makes me wonder what's in it for the exchanges and how they manage to end up not listing the tokens in some instances. How would you explain what deposit to list entails to a novice? And would you encourage a novice to participate in these events?
most of the CEXs are doing marketing promotions by making deposits just to attract more new registrants. for example, the reward is the token from the exchange itself, and to claim of course requires valid data via KYC. as well as withdrawals which of course will increase the profitable transactions of the exchange.
this is just an example of the marketing strategy that exchange platforms use to get new members. it never hurts a beginner to try, but it is better to validate the reputation of the exchange first.