I had a debate with a friend about which is better, purchasing a token new token before its listing on an exchange or the moment it gets listed.
I feel like purchasing a token before the listing gives much more space for profit, but he mentioned that there's also a huge risk of not knowing whether it will end up getting listed and that was a fair point. He also raised the point that buying tokens after their listing was safer, but even if it's true that it holds less profit potential than the former, it also has huge potential if it gets listed on a top exchange.
He mentioned a couple of tokens that got listed on certain exchanges, mostly the top exchanges like Binance, Bybit and Bitget and those tokens experienced pumps experienced massive pumps. The one I remembered was PNUT he said it was up 17x. He made good points but I'd rather table it here, what do you guys think?
I think you only see what is happening around the surface of coin listing and came with this conclusions but there is much to it. If you buy a coin before listing, it has its own advantage and also buying after listing has its own advantage as well.
You can buy a coin before listing and enjoy the initial pump to enjoy the profit but just like you say the coin might not end up getting listed, that can happen if the project isn't back by serious team or teams that has connection to list on good exchange and if the team has a good relationship with the exchanges and has what it takes to list on those exchanges, you might not have the chance to get all the coins because the team might not give you everything to sell at once so you don't have to dump it.
Buying before listing has its own advantage but make sure you are buying without vesting that is, your coins does not come with a condition that will lock some of your coins. If you are buying a coin that has been listed, make sure you are buying when the price is low, that's your perfect short to buy and hold. The only difference between this and initial listing is that this one you have to wait and hold until you make a good profit.