Over recent years, cryptocurrencies have gained popularity among institutions and businesses, realizing the prospect of developing their own coins or tokens. Yet, to receive recognition and value, it is crucial to have them listed on well-established cryptocurrency exchanges, such as Binance or WhiteBIT.
Today, we will discuss the importance and reasons for token exchange listing.
Token listing is the process of adding a new token to a crypto exchange, opening numerous opportunities and advantages for this asset and the project behind it. Usually, the process takes a few steps, including:
- Applying for listing
- Providing documentations and licenses
- Proving compliance with regulations
- Demonstrating a strong and engaged community
- Paying a listing fee.
Different platforms have diverse requirements for a new project listing, due diligence, and documentation, so these are rough steps common for most platforms.
Here are the main reasons why projects strive to list their tokens on exchanges:
- A token gains the opportunity to be traded. A crypto exchange is a place where traders and investors come in search of new promising crypto assets for investments. Once listed on an exchange, the token becomes visible to market participants and gets a chance to be bought and traded.
- Liquidity growth. Crypto exchanges often cooperate with market makers who boost token liquidity and turn them into attractive assets for investment. This is also why partnering with a market maker often facilitates listing.
- Stability of price. Liquid assets are not that much vulnerable to market manipulations. So the higher the token’s liquidity, the lower the volatility, thus, a more attractive price for traders.
- Credibility. Reputable crypto exchanges impose stringent requirements on compliance with regulations for token listing applicants. Thus, the tokens that have been listed on a platform, are deemed to belong to reliable and legitimate projects. This is a serious argument for institutions to consider them as a worthy investment option.
Crypto projects and startups strive to list tokens on large platforms because it is actually a gateway to successful project growth and mass token adoption. In the past, crypto exchanges chased promising projects to list them. Today things have changed – crypto projects are chasing exchanges and applying for listings, and the process takes a lot of effort. This includes arranging documents, proving compliance, due diligence, etc. However, once listed, a token gets exposure to the world’s investors and traders, which boosts its chances to grow and gain worldwide adoption.