Let’s say you have a cryptocurrency that moves seamlessly across the blockchain. You will get a call. It’s exchanges in the major leagues. They are interested and want to list you. However, what does this mean? Will you become a household name in the cryptocurrency world or just another digital number? Here we break it down and ask, “What is listing a crypto?”
What Is Listing Crypto?
Public acceptance of a cryptocurrency is one of the main factors affecting its value. If a significant number of people find it valuable, it is possible to trade the token on relevant websites. The market forces of supply and demand will also determine the exact price. However, the process of starting a business is expensive. Also, representatives of exchanges do not want to waste time and money on unworthy topics.
As a result, each new token put up for sale must pass a rigorous verification process being added to or removed from the “Resources For Trade” list. We refer to this process as listing.
Working Process of Listing
Typically, the process is initiated by the token issuer. He/she applies to a pre-selected exchange and then complies with its terms to do this. Every exchange has a list of cryptocurrencies available for trading and needs. Therefore, the coin will initially circulate on a small exchange with loose terms, and representatives of other exchanges will approach the coin issuer and offer to send a list. However, this happens less than the new coin developers would like.
They frequently have to follow the protocol’s typical steps…
Completing the questionnaire. Here, you must include the essential information about the project such as its foundation date, purpose, Github link, “white sheet,” aims, and development guidelines. Additionally, information on developers’ prior accomplishments and projects can be needed in some places. The trading platform determines the profitability of the new asset after analyzing the received data. An exchange special commission evaluates the data and decides to include or exclude a new cryptocurrency from the list. If so, an agreement between the issuer and the exchange was followed.
Priority is given to the new coin’s functionality and usefulness. This is a big plus if it serves any purpose other than “becoming the second Bitcoin.” For instance, there are increased opportunities to be listed for internal tokens of major projects which provide various benefits including the ability to take part in service management.
Safety is our next important consideration. In general, blockchain technologies are more secure than traditional digital technologies, however, individual markets may have different security requirements. If the new coin fails to meet these standards, its chances of success are absolutely nil, as any possible hack will damage the image of the exchange.
Another option is “Pre-List”. At this stage, the project has already undergone analysis and has been found to meet the standards of the trading platform, but the Commission has not yet given its approval. Open voting is now possible among platform users. Also, priority will be given to initiatives with the highest number of votes.
Everything seems so easy, right? But there are many ugly details…
Potentially the most important point is that listing is almost always a paid process. In the context of any promotion, both small and large exchanges can add free tokens. Increased fees correspond with platform size.
According to the findings of a Business Insider investigation report, the average cost of launching a new cryptocurrency is around $50,000. However, it could be more. Also, these payments can be made “unofficially”. Specifically, in the form of bribes. Similar events previously occurred at the Coinnest exchange where management paid an $8,90,000 bribe to speed up the S-coin Cryptocurrency listing process.
Then why are the providers willing to pay this much amount? However, if a substantial and recognized exchange or trading platform determines that it is worthwhile to engage in this cryptocurrency, they immediately become “quality guarantors”. Also, a ton of traders and investors who couldn’t give the “young and promising” company any thought will jump on it right away.
Pros
To be more specific, the primary measure of a token’s potential and the market’s willingness to accept it is its listing. Here are the benefits of doing this…
- Significant rise in the appeal of investment
- It greatly facilitates the continuous development of the project and increases the trust in the resources and its creators
- Increase in capital
- Significant development of community
Cons
Among the drawbacks are…
- The process is expensive, especially when working on large sites.
- Must meet high safety standards
- Failure to substantially change the scheme policy after practical approval
- Space to “fly out” of the list if something goes wrong
De-Listing
Listing is indeed a reversible process. A delisting process might be used for the cryptocurrency if it somehow breaks the rules set forth by the platform. This implies that future commerce within the parameters of this resource will not be possible. Thankfully, users will be able to transfer their assets to other platforms, but things could get complicated if they have open transactions during the process. This is dependent upon the platform’s policies.
- Cessation of currency adherence to market norms
- A steady, long-term decrease in price and demand
- Hacking a particular cryptocurrency
- Stopping the development of the project and further development
- Modifications in local laws
- Many complaints from users
As you can see, just following the steps and relaxing isn’t enough. Further development, revenue generation, and community engagement are key aspects of this initiative. In a word, to bring profit not only to the provider but also to the trading platform.
Conclusion
So, that’s it! Getting a listed cryptocurrency is no walk in the (virtual) park, from navigating regulatory hoops to guaranteeing excellent security. But don’t worry, everything is possible when you have the right people by your side. Speaking of the right people, Zodeak can help you whether you want to launch a new cryptocurrency or establish your cryptocurrency exchange. Think of us as your cryptocurrency guide, available to help you every step of the way through the listing process. We’ll guide you through the obstacles, steer clear of scam artists, and help you avoid scams and pitfalls.
In the turbulent world of cryptocurrency, it’s always good to have a trusted partner. Why not change it to Zodeak a reliable Cryptocurrency exchange script provider? We’re here to make sure you create the best impression when listing your coin…
