All about listing cryptocurrencies on an exchange

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Cryptocurrency
26 February 2024
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Cryptocurrency exchange listing is the process by which a cryptocurrency becomes available for trading on a particular exchange. This process involves a number of steps and requirements that both exchanges and cryptocurrency developers must fulfill.

In this article, we will tell you all about listing.

Cryptocurrency listing

What is a cryptocurrency listing and how it happens

The cost of listing a token is always a question of "how much?" and "where?". Let's break down what influences these numbers:

  1. Application: The teams behind cryptocurrencies start by sending an application to the exchange. They share all the details about their project, from technology to future plans.
  2. Exchange verification: Next, the exchange takes on detective work - it investigates the cryptocurrency to make sure everything is clean and safe for trading.
  3. Compliance: Sometimes developers have to fulfill a number of requirements, such as paying a listing fee or ensuring sufficient liquidity.
  4. Exchange integration: If everything goes smoothly, the cryptocurrency becomes part of the trading platform, ready to meet users.
  5. Start of trading: From this point on, the cryptocurrency is officially traded on the exchange and users can start working with it.

Listing on an exchange can have a significant impact on the price and liquidity of the cryptocurrency, so this is an important step for projects and traders.

Factors affecting listing approval

When considering an application to list a cryptocurrency, exchanges consider a number of key factors that determine whether a token will be added to their list of trading assets. Understanding these criteria will help projects increase their chances of a successful listing.

  1. Development team activity: Exchanges look for projects with active and transparent teams that regularly update their product and communicate with the community. Continuous development and improvement of the product indicates its viability and long-term growth potential.
  2. Product utility: Projects that offer unique and in-demand solutions have a better chance of listing. Exchanges are interested in adding tokens that provide real value and can attract a wide audience of users.
  3. Community and support: A strong and active community can be crucial for an exchange. Enthusiasm and support from users not only contributes to liquidity, but can also serve as an indicator of a project's reliability and future prospects.
  4. Security: Projects should demonstrate a high level of security and protection against possible attacks. Exchanges carefully review security measures to minimize risks to their users.
  5. Liquidity: To maintain an efficient trading process, exchanges need tokens with good liquidity. Projects must ensure sufficient trading volume to avoid extreme price volatility.

Listing costs

Listing costs can vary greatly depending on the exchange and cryptocurrency. What affects the cost of listing:

  • Popularity of the token: More well-known cryptocurrencies usually face high listing fees due to high demand. It's similar to concert tickets for a famous band: the more popular the artist, the higher the price.
  • Exchange policies: Each exchange sets its own rules and listing fees. Some may offer preferential terms for startups or unique projects, while others keep a fixed price for all listings.
  • Project uniqueness: Projects that offer innovative solutions or attract attention with their uniqueness can sometimes negotiate more favorable listing terms. This depends on how much the exchange is interested in adding that particular token.
  • Exchange reputation: Listing on more popular and respected exchanges usually costs more. This is because such platforms offer greater visibility and potential access to a broad investor base.

Here are some prime examples:

  • Binance charged a $100,000 listing fee for the Solana (SOL) cryptocurrency in 2021.
  • Coinbase charged a $250,000 listing fee for the Cardano (ADA) cryptocurrency in 2021.
  • Kraken charged a $100,000 listing fee for the cryptocurrency Polkadot (DOT) in 2021.

How listing affects the value of a token

Listing a cryptocurrency is a big step that can seriously shake up its value and the playing field. Let's break down the main points that play a role:

Liquidity jumps up: When a token appears on an exchange, it becomes easily accessible to a wide audience, attracting fresh investment. This tends to give a boost to activity and can push the price up.

All eyes on the token: Appearing on a major exchange attracts the attention of not only investors, but also traders. Many take it as a sign of reliability and potential, which boosts demand.

Confidence grows: Being recognized and added to a respected exchange is like getting a quality seal of approval, which can strengthen investors' faith in the project. More trading opportunities: New pairs for trading expand horizons and further stimulate interest in the token.

Expectation effect: The excitement around an announced listing often temporarily raises the value of a token, thanks to market expectations. But it is worth remembering: volatility can also increase with the arrival on the exchange, so it is important not to get carried away and assess the risks.

When a token leaves the exchange

listing

Delisting is the other side of the coin, when a token is removed from the list of traded assets. This can happen for a variety of reasons:

Team scandals: If issues surface, such as fraud or mismanagement, it can undermine trust and lead to delisting from the exchange.

Legal difficulties: Disputes or court cases related to the project can be a stumbling block to its stay on the platform.

Breaches of Commitments: Failure to fulfill commitments made to the community or partners can also force an exchange to take action.

Exchanges are keen to protect the interests of their users and maintain their reputation, so delisting is often seen as a necessary measure to maintain the quality and safety of the trading space.

How delisting affects the price

Here are the main points to pay attention to:

Falling liquidity: Once a token disappears from an exchange, it becomes harder to buy or sell. It's like turning off the music at a party - the dancing stops and the price can drop due to decreased demand.

Shock news: With news of delisting often comes a wave of negativity as well, which can make investors run for the exits. It's like a bad rumor that spreads faster than fire and can cause panic selling.

Thedomino effect: If one exchange gives up on a token, others may follow suit. It's like when one domino stone falls, causing the entire chain to collapse, which puts even more pressure on the price. An example is the case of Quantstamp (QSP), which shows how brutally the price can fall after a series of delistings.

Risk of losing everything: If you have a token that isn't traded anywhere else, you may find yourself at a dead end. It's like holding a ticket to a canceled show - where do you put it?

Legislative action: Sometimes a delisting is due to non-compliance with laws, which can lead to its removal at the request of regulators. It's like when rules change on the fly and not everyone has time to adapt.

In short, delisting brings with it a lot of trouble for the token and its holders. Important stories like the Bitcoin SV (BSV) situation emphasize how important it is to follow the news and choose reliable platforms for investment.

How to make money on listing: recommendations from Cryptology experts

It is possible to make money from token listings, but it requires a strategic approach and a deep understanding of the market. To choose a potentially successful token, it is important to evaluate the technological basis of the token, the qualifications of the development team, and the long-term prospects of the project. Experienced traders know that the price of a token often increases just before and immediately after listing. You can count on profits if you invest in tokens immediately after the start of trading or even before that, having recognized the potential of a new cryptocurrency. For example, the AAVEUP coin started trading on Binance on November 26, 2020 with a price of 9.7 USDT, and a week after listing, the token price jumped to 26 USDT. However, a price rise immediately after listing is not guaranteed. Very often, early investors start draining assets right after the start of trading, which leads to a fall rather than a rise in the token's value. For example, the price of the ROSE coin on the day of listing almost tripled in just a few hours after trading began. 

Here are a few resources from us where you'll find information about upcoming listings:

https://coindar.org/
https://coinmarketcal.com/ru/
https://listedon.org/ru
Also Telegram bots to inform you about listings on exchanges:

@coin_pulse_listing
@CryptoExchangeListing

Conclusion

The appearance of a new cryptocurrency on a leading exchange often provides a great opportunity to make money on that asset. However, there are no guarantees that the new coin will necessarily increase in value. In order to maximize the chances of successful investments, it is extremely important to constantly follow the news about new startups and their development, as well as regularly review the official pages of projects and exchanges. In addition, remember the importance of fundamental analysis and assessment of the project's potential.

Frequently asked questions about cryptocurrency listings

What is a cryptocurrency listing?

Cryptocurrency listing is the process of listing a given cryptocurrency on a trading platform (exchange) or cryptocurrency exchange service. This allows users to buy, sell or trade that cryptocurrency on that platform.

Which exchanges list cryptocurrencies?

Many exchanges list cryptocurrencies, and the most popular among them include Binance, Coinbase, Kraken, Bitfinex, and many others. Each exchange has its own criteria and procedures for listing.

What is the process of listing a cryptocurrency?

The listing process usually begins with an application from the project team or cryptocurrency developers to an exchange. The exchange then conducts its own analysis and reviews the application. If the cryptocurrency meets the criteria, it can be added to the exchange.
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