According to CoinMarketCap, there are presently over 2500 cryptocurrencies and over 300 exchanges where they are exchanged (not counting innumerable minor exchanges). However, new initiatives arise every month, showcasing their tokenized solutions for a variety of sectors. Previously, initiatives would generally complete their public fundraising stage before coming to exchanges to be listed. Many new projects nowadays desire to go to exchange without first launching a token sale.
Why do projects need to be listed?
Let’s first go through the key reasons why projects need to be published on exchanges. Many projects do not properly get what the exchanges token listing should provide, stating the key aim for themselves as having the token traded someplace. This is acceptable, yet a high-quality listing includes the following elements:
The ability to exchange, purchase, and sell tokens
Putting your token makes it accessible for sale. People in the project community will be able to freely purchase and sell the token, giving the project and the token a fighting chance.
- Community growth and expansion into new markets
Each exchange has its community, created on a variety of criteria, including geographical ones. Getting listed on a new exchange entails entering new markets, among other factors. Some exchanges operate globally and have traders from all over the world, but others are more focused on local markets (e.g., Korea, Latin America, and Eastern Europe). Listing on a new exchange provides the project with the potential to not only increase trading volume and liquidity but also to capture the attention of other exchange users and convert them into community members, therefore establishing its presence in a specific location.
- Sales of tokens
Project founders are typically the largest holders of the project’s native token at the time of debut. Tokens frequently lack the liquidity required for expansion and development but holding an ICO/IEO round is not always essential or even practical. In certain circumstances, with a successful listing and adequate token liquidity, the project’s founders can operate as traders, selling and buying the token as needed for project development, as provided as it does not contravene the business’s financial model, WP, or duties to the holders.
What to look for when selecting an exchange
Every exchange asserts that it is the greatest. However, you should be aware that virtually all exchanges have some level of phony trade volume. And other exchanges have been at the top for years only because of their phony volumes – they have absolutely no genuine traders or liquidity but can sell pricey exchanges token listing by seeming to have greater activity, resulting in disappointment and a waste of money for projects. We are occasionally approached by projects that have been duped in this manner and asked for our assistance. There aren’t many of these exchanges, but there are a few. As a result, you must be wary of ratings and trading volume figures, and you must be well-versed in and understand the market to detect them. Listing agents, as discussed in the next sections, can assist you in doing this appropriately.