The crypto industry sees new projects and tokens emerge almost daily, each seeking to attract the attention of investors, expand their audience, and increase the liquidity of their tokens. And while creating a token is only one aspect, the real challenge is listing it on a crypto exchange.
Behind the facade of this procedure, there are several processes, requirements, and criteria that you need to be aware of. So, how do cryptocurrencies get listed on the leading exchanges, and what do startups need to know to not only get listed but also ensure the further development of the project?
Types of Token Listings: Classification by Key Criteria
Listing is the process of adding a token to a cryptocurrency exchange or trading platform, after which users can freely buy, sell, and exchange it.
The process involves several stages: application by the project, evaluation of the token by the exchange, verification of documentation, ensuring compliance with the platform’s requirements, and technical integration with the exchange.
After a successful listing, the token becomes available for trading, which is accompanied by announcements in the exchange’s channels and helps to increase the liquidity of tokens and their recognition among investors.
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Tokens can be listed on crypto exchanges based on different criteria. The main types of listing include the following:
By process type:
- Public – a token becomes available for trading on the exchange after passing a standard check: providing detailed documentation from the project and passing an evaluation.
- Private (preliminary) – a token is available to a limited number of users (usually before the official launch on the exchange) and may include special offers or tokens for early investors.
By level of complexity:
- Standard – the token goes through all the mandatory stages of verification and approval on the exchange, including audit, team evaluation, and technological verification.
- Simplified – in some cases, exchanges may offer simplified conditions for tokens that already have a good reputation or partnership with well-known projects.
By type of exchange:
- Listing on a centralised exchange.
- Listing on a decentralised exchange.
By time:
- Primary – the process takes place immediately after the creation of the token and the completion of the ICO (Initial Coin Offering) or IEO (Initial Exchange Offering), which allows the project to quickly enter the market and raise funding.
- Secondary – the token is added to a new exchange after the initial launch on another platform, which helps to increase its liquidity and popularity.
Behind the Listing: How Exchanges Choose Which Tokens to Add
When it comes to listing a coin, cryptocurrency exchanges are very cautious. They do not accept every project that applies, as it is a thorough selection process that takes into account many factors.
The main focus is on the technological basis of the token, the quality and experience of the team, the potential of the coin, and regulatory compliance. For crypto platforms, it is important not only to add a new coin to the asset list but also to ensure that it is safe, reliable for traders, and compliant with standards.
- Legal compliance. Exchanges carefully check whether a cryptocurrency complies with the laws of the countries they are targeting. If a token does not meet the requirements, it may be rejected.
- Project potential and team. Technology, business model, and transparency of processes are also things that exchanges pay attention to. An experienced team, active communication with the community, and a clear project goal significantly increase the chances of listing.
- Popularity and demand in the market. If active interest is generated around a token, the project is discussed in communities and trusted by investors, it becomes a strong argument for the exchange to pay attention to it.
- Technical base. Exchanges thoroughly check the technical aspects of tokens, including security, scalability, and the overall technological base. It is important that the project has well-developed technical documentation, including a description of the algorithms, network architecture, and consensus system.
- Liquidity and trading volume. If the token already has a trading volume on other platforms or is potentially capable of generating demand, it is an additional advantage.
- Social activity. Activity on social media, Telegram channels, and forums can not only indicate the popularity of a token but also affect the reputation of a project.
The application approval process is not fast, as it involves a significant verification process for all of these aspects. Moreover, the quick approval of a token listing application often means that the exchange does not conduct an in-depth review of the project’s details, such as assessing its volatility or verifying the team.
As an example, we can mention the recent update from Binance – the ‘Vote to List’ feature. It changes the traditional approach to the selection of new tokens, turning the process into a competition for popularity.
The focus is now on community engagement and support, which can directly influence the platform’s decisions. At the same time, even though the Binance team still conducts an additional audit of the projects that received the most votes, this model still has its risks.
After all, projects of dubious quality may receive support simply because of a good marketing campaign or a large fan base, rather than real value or reliability.
In contrast, some crypto exchanges, such as Coinbase, WhiteBIT or Kraken, adhere to stricter standards. Their KYB (Know Your Business) procedure is much more complex, but this is what shows that they are serious about compliance and vetting projects before listing.
Five Essentials to Help Your Token Make It to the Exchange
So, if you have decided to create your crypto project and plan to place your token on a cryptocurrency exchange, you should be well-prepared for this process. Several aspects will help increase your chances of success.
- Project and team transparency. Disclose information about your team, their background, project development roadmap, etc. Clear and accessible information inspires trust among both crypto exchanges and investors.
- Active crypto community. Build a strong and engaged community around your token. Regularly share updates, comment on industry news, and communicate with your community. Social media activity around the coin is a signal that the project is alive and has strong support.
- Legal compliance. Make sure that your project meets all regulatory requirements and does not cause any problems for regulators.
- Choosing the right exchange. When choosing a listing platform, consider not only its popularity but also its reputation, trading volumes, and project requirements. Sometimes it is better to start with a medium-sized exchange with more flexible conditions than to try unsuccessfully to break through to a top platform.
- Attracting investors. Actively work on attracting investments, which will not only increase the financial stability of the project but also add weight to it in the eyes of the exchange.
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