Entrepreneurs occasionally introduce new tokens with distinctive features to close one or more holes in the current crypto offerings. The size of the community of users that retains and trades the token determines its long-term success, even though there are numerous reasons to develop a new token, from addressing novel use cases to simply exercising creative freedom. crypto
Getting a freshly released cryptocurrency or token listed on crypto exchanges is one of the primary ways to get it into the grasp of as many people as possible. To be able to be taken into account for listing, it is crucial to understand and abide by the particular criterias established by cryptocurrency exchanges.
We examine the different criteria outlined in this article put forward by some of the most well-known cryptocurrency exchanges to offer tokens for trading.
What Characteristics Distinguish a Good Crypto Token?
While the majority of cryptocurrencies are designed differently and for specific use cases, tokens that succeed in the market tend to share some characteristics that are highly valued by crypto platforms.
Due to the abundance of off-the-shelf products and white-label services, launching a new cryptocurrency coin is no longer a difficult task. However, the tokens must demonstrate their value across a range of variables to be listed on cryptocurrency exchanges.
Tokens can typically be identified by the blockchain environment and standards they use, such as Ethereum with ERC-20, Tron with TRX-20, Binance with BEP-20, and so forth.
Let’s begin by discussing the formula of the foundation of a successful cryptocurrency token:
Proven Team
Within the cryptocurrency ecosystem, constant improvement has become the standard. The community anticipates active involvement from the group behind the cryptocurrency initiative given that the token is a cryptocurrency.
Engaging regularly includes activities like addressing community concerns, introducing new features based on the previously set road map and white paper, and providing (weekly/monthly/yearly) updates about new developments, progress, or plans.
Useful Resource
The key to a token’s long-term success relies on its usefulness and quality, even though a lot of cryptocurrency tokens have seen an increase in trading volumes and market values purely due to speculation.
A token’s importance is determined by the use cases it is designed to serve and the size of the community that supports the initiative. Most cryptocurrencies on the market are introduced with the goal of solving at least one of the problems that exist in cryptocurrencies or traditional finance.
While the addition of several white-label services has sped up the process of developing a new token, tokens must support applications that can address real-world issues.
Large audience
As we earlier mentioned, a sizable user group is a surefire sign of the success of a project. Initial DEX offering (IDO) platforms, which are trump cards focused on communities like the airdrops and launchpads, are the main way for cryptocurrency projects to attract their first user base.
Liquidity
In the cryptocurrency environment, higher liquidity means that tokens can be easily traded against each other on platforms such as crypto exchanges. In addition, being able to sell freely increases investor confidence and encourages community participation.
Security
Major cryptocurrency initiatives could be completely bankrupted and shut down with just one well-planned attack. One of the key pillars for guaranteeing credibility and trust in your project is security.
Requirements Unique To An Exchange To List Your Tokens
A cryptocurrency’s project odds of joining a cryptocurrency exchange significantly increases once it understands the aforementioned advice. It may interest you to know that well-known cryptocurrency exchanges like Binance, Coinbase, and FTX have made public some guidelines that assist token owners in navigating a particular geography-based requirements.
Publish Your Cryptocurrency On Binance.
The majority of recently released crypto tokens planned to be listed are usually on Binance because it is the most popular cryptocurrency exchange in terms of the volume of trading it supports globally.
Based on if the project wants a direct listing in Binance’s global portal (Binance.com) or involvement in the Launchpool/Launchpad initiative, applicants must start their listing journey by completing the right form.
A direct listing is ideal for projects whose tokens are already in use, whether through airdrops, peer-to-peer trading, or being listed on other cryptocurrency platforms. Nevertheless, Binance’s Launchpad program targets initiatives in the early stages that have not yet issued a token.
Changpeng “CZ” Zhao, CEO of Binance, stated that a key employee of the business, such as the CEO, must complete the application form and provide all pertinent information as requested.
CZ also disclosed that the most crucial requirement for being listed on Binance and any of its subsidiaries is the number of users. The precise costs to list a token on Binance have not been made publicly available, but the listing fees by the crypto exchange are donated to the Binance nonprofit Foundation, a fully transparent, blockchain-tracked charity.
Publish Your Token On Coinbase.
The process of adding new cryptocurrency assets to Coinbase’s exchange starts with filling out a form. Following application submission, the tokens are assessed using the self-developed digital asset system by Coinbase.
Currently, Coinbase does not charge an application fee, but later on, based on the volume of submissions and associated operational expenses, it might. The exchange also uploads tokens without needing a formal listing request, solely in accordance with local laws and demand on the market.
The crypto trade rolls out unused token postings in four stages: transfer-only, post-only, limit-only and full exchanging. Each stage speaks to the degree of usefulness Coinbase has permitted for the specific token.
List Your Cryptocurrency On Kraken.
Kraken adopts a much more conventional strategy and only accepts listing requests sent to an official email address, where only a developer or other project member is tasked with the role of sending the necessary information.
Although the cryptocurrency exchange has not made a set of rules openly available, it does advise all applicants to give as much information as they can about their projects to improve their chances of being listed.
Publish Your Token On Crypto.Com.
According to Crypto.com criteria, all new token listing applicants must make sure that their digital assets have cleared both the security and legal inspections, based on the communities they plan to serve. In the application form, Crypto.com specifies what is needed for an applicant’s token to meet a need or resolve a problem.
Note: Due to a number of regulatory obstacles, crypto exchanges like FTX and Gemini no longer accept new applications or have decided to keep their listing requirements a secret.
What To Do After Applying For a Token Listing?
As intimidating as what follows this process is, it is hard applying for a listing. Regardless of the scope or reputation of the project, all tokens that ultimately stand out from the crowd share a few characteristics.
Below are some of the essential considerations every successful cryptocurrency project must adhere to:
Post Frequent Updates
Projects that have cultivated the practice of regularly sharing weekly or monthly reports with their general public are well-liked by cryptocurrency exchanges. Twitter, official blogs, Medium, GitHub commits, and other platforms are some of the common ways to share frequent updates.
Embrace Local Ecosystems
Tokens that are compatible with the exchange’s internal chain are preferred by crypto platforms. Cryptocurrencies based on the BEP-20 token specification, for instance, will be more likely to be published on Binance than any other cryptocurrency market.
Binance also advises integrating BNB/Binance USD (BUSD) into the ecosystem of the enterprise to increase the likelihood of being listed. However, Coinbase calls attention to a cryptocurrency’s status in terms of managing a regulated digital commodity. Therefore, tokens that have already received regulatory approval will have a higher chance of passing Coinbase’s screening procedure.
Active Communities
The development of an enthusiastic group is regarded as a reliable sign of a project’s long-term success. The project’s general activity is sown and maintained by selecting procedures for system improvements, rapid airdrop opportunities, and other community-supported activities.
The Wait For The Approval Of Your Registration.
Numerous applications for token listings on cryptocurrency exchanges are being received, from both potential initiatives and individuals who are merely making an effort at luck. Because of this, exchanges are renowned for taking a long time to sort through the applications and only accept those who strictly follow the listing requirements.
Crypto exchanges advise applicants to carry on with their initiatives whether or not they are chosen. Exchanges frequently keep an eye on earlier listing requests, and they might decide to get in touch with them based on their current market performance even though they were previously denied.
Finally, projects must abstain from contacting officials and owners of cryptocurrency exchanges directly to inquire about the status of approval or to share any white papers. When the crypto exchange has been reached out to, projects must confirm they have gotten emails sent from official addresses, which are typically digitally signed. Remember that as new laws and services are implemented, the requirements for being listed on a cryptocurrency market will continue to change.
Trading As a Tool For Promotion
Being listed for trading on cryptocurrency platforms increases credibility and confidence amongst investors. This is a tool, that cryptocurrency projects make heavy use of to promote their ideas or coins and attract more investors. Additionally, being listed on one of the well-known cryptocurrency exchanges has a cascading impact that lets other market participants in.
Smart contracts are one of the main methods to add new features to an existing cryptocurrency blockchain.
