This post contains sponsored advertising content. This content is for informational purposes only and not intended to be investing advice.
Listing on an exchange is an important milestone in the roadmap of any cryptocurrency project. Getting a coin listed on the best exchanges greatly increases its chances of success, as it provides an increase in value and better accessibility for investors. Gaining access to liquidity is vital to the success of any cryptocurrency. Bitcoin Cash’s listing on GDAX and Coinbase almost doubled the price of this cryptocurrency within 24 hours.
The requirements are high: you need to have a competent team with great development skills and experience in the crypto sphere. You need considerable support from a community and a positive story.
However, even if the project has this in spades, it still might not appear in the listings of major token exchanges, as is the case with Skycoin, one of the oldest participants in crypto space, which was co-founded by Brandon Smietana, a blockchain luminary who was among Bitcoin’s initial developers. Despite the fact that the company’s software and hardware products are among the most valuable on the market to this day, you won’t find its token listed on Binance.
Influence of exchange listing on coin prices
In 2017, hundreds of new digital tokens flooded the market thanks to the ICO phenomenon. This influx continues unabated even today, despite the fact that ICOs are already, in many ways, yesterday’s crowdfunding. Today, a token’s success is strongly tied to whether it gains recognition from exchanges, as ICOs have given way to IEOs – initial exchange offerings of tokens. However, many of the new digital tokens and currencies will never make it into the public eye because the major exchanges won’t list them.
Without the support of large exchanges, buying and selling digital assets becomes an impossible task. Moreover, it is doubtful that anyone would want such an asset at all. Therefore, there is a clear correlation between the success of a cryptocurrency and the quantity and quality of the exchange listings in which it appears. On average, the value of a cryptocurrency increases by 25-30 percent after listing. This effect is often short-lived, and after the hype, the value of the coin begins to correct.
For example, after experiencing the rollercoaster ride that affected nearly all tokens during the crypto craze of 2017, Skycoin’s token was trading in the $8 range, about 80 times higher than the 10 cents the project’s initial investors had paid. But with the announcement that Skycoin was to be listed on Binance, the token quickly rose to about $33, a fourfold increase, so it’s clear how important getting listed on a major exchange can be for a crypto project.
What are the general and individual listing requirements?
The listing process is based on a rigorous review and process that requires issuers to demonstrate the viability of their token and their business model. …
Full story available on Benzinga.com