More tokens get listed on various exchanges at a really fast pace. But do you know all that it takes to be able to accomplish this?
Getting your coin listed on an exchange may sound like a very challenging thing to do, and the process might trigger a lot of anxiety.
But, with the right actions and the best strategy, this can be quite straightforward.
In this article, we’ll detail the main things that are required for a newly issued token to get listed on crypto exchanges.
First thing’s first. For ICO-funded blockchain startups, it’s highly relevant to list their newly issued coins on reputable exchanges.
This will not only add loads of credibility to your project, but it will also increase the likelihood that the token grows in value as more and more investors gain access to it.
Why are crypto exchanges so important?
Getting your token listed on reputable exchanges can make all the difference between the success and the failure of your company.
For ICO projects that are holding a significant amount of their tokens, maintaining the token value is basically the same thing as having enough funds available to support the developments of the project.
More than that, some projects really need their token’s value to remain relatively stable especially if token holders plan to use it within the project for various actions and developments.
Let’s say your token is a utility token. This means that listing it on a popular and liquid exchange will trigger more buyers.
This is best applied in the case of tokens that are traded on exchanges which support fiat.
Another useful tip is to remember this: the more exchanges that list your token, the higher its reputation becomes. The project behind the token will also stand out more.
General requirements for listing your token on an exchange
There are hundreds of exchanges at the moment and, of course, there are also new ones that are being launched all the time.
As you may know, listing requirements vary from one platform to another, but it’s important to know that there are some things which are usually generally required in most exchanges.
These are the things that you should be focusing on when you are considering listing your coin on a crypto exchange.
(1) Your project should be original and bring valuable innovation
First of all, your project should definitely produce a high-quality and valuable service or product.
It’s also important to know that copies of blockchain use cases or existing platforms will not be seen as necessary projects, so they can be disposable.
The idea is that your project has to be original in order to get listed on an important exchange. It has to show an innovative way to fill a certain market gap or to provide a better alternative to an existing blockchain.
(2) Pay attention to the design and code of your project
Secondly, developers should pay enhanced attention to details regarding the design and code of the project.
Small and new exchanges may not pay too much attention to such things, but important ones definitely will. If the project is filled with vulnerabilities that could trigger cyber theft, for instance, it cannot be successful.
(3) Provide lots of info about your project
The third important thing that you should take into consideration is that most exchanges will require extensive information on your project which includes: tech specs, details about the team and the token sale as well.
Some exchanges even require to see the code for themselves in order to be able to check the project’s security. This is why it’s recommended that you post the source code on GitHub.
Other exchanges will also ask for the maximum supply of the token, fees that will be charged for transactions, and all visual details regarding your token such as the logo, and more.
(4) Make sure your coin passes the Howey Test
Last, but surely not least, there’s also the Howey Test.
This is something that we’ve already discussed in another article when we reported that a former SEC employee used this test in order to determine whether XRP is a security or not.
The test is a precedent set by the US Supreme Court, and it is used to determine whether investments are classified as securities.
If your token does not pass this test, it might be difficult to get listed on exchanges because of the regulations that are adopted by the SEC and which place the security tokens under massive legal scrutiny.
This is the main reason for which in order to avoid legal issues and to abide the law, many exchanges will only list utility tokens and digital currencies. Sometimes, a written statement from a law company could be required from an exchange to prove that a coin is not a security.
Another thing worth mentioning again is that if your coin is not ERC20, you will need to provide a GitHub link for downloading the code that’s necessary to build a wallet.
More important details to remember
What we highlighted above are just the essential requirements that you have to be prepared for.
Other than these, exchanges have their own personalized requirements which will vary from one exchange to another.
Anyway, what you will first need to do in order to get you token listed on a crypto exchange is get in touch with the desired platform.
For instance, if you want to get listed on Bittrex, there will be a dedicated page via which blockchain projects can submit their coin for consideration.
It’s not always this easy and sometimes more research will be required to get in touch with a particular exchange and submit your coin.
After you are able to submit your token, you will just have to be patient and wait, because such an evaluation can last a longer time. Just think about how many people have done the same thing as you and submitted their tokens.
It’s also important to be aware of the fact that some exchanges will charge a listing fee and this can be pretty high (reportedly even between $50,000 to $1 million in BTC), so your startup should be able to meet such financial requirements.
Other than this, don’t forget to make sure that your project is original and useful for the crypto space.
