By James Davis
While there are numerous reasons to develop a new token, its success depends on the number of people holding and trading it. One effective method to get your new token into the hands of as many people as possible is by getting it listed on various crypto exchanges.
That being said, it’s vital to adhere to the requirements stipulated by crypto exchanges in regard to token listing. This article seeks to explain the various requirements established by some of the most prominent crypto exchanges in the world to have your token listed on their platforms.
What Makes a Good Token?
Launching a new token is not a big deal anymore, but having it listed on a popular crypto exchange is. That’s because the token has to prove why it deserves to be listed. Here are some ingredients which make a good crypto asset that could likely convince a crypto exchange to list it.
Proven Team
Most holders of a particular token expect the team behind the project to show active participation. Meaning it must share regular updates regarding new developments or progress and take time to address any concerns raised by token holders. This boosts the chances of the token getting listed on exchanges.
Useful Product
There are several crypto assets that have surged in value purely because of the hype around them. However, for a token to achieve success in the long run, it must have solid use cases. If we look at many cryptocurrencies that have survived the bears, they are all designed to solve some pain points in the traditional finance sector or within the crypto space.
That said, developers looking to have their tokens listed on popular crypto exchanges must ensure that their crypto assets are intended to tackle some real-world problems.
Large User Base
As mentioned earlier, a big user base is a major factor that can fuel a token’s success. Most crypto exchanges are looking for crypto assets that have a significant number of holders. Therefore, token creators can carry out community-focused initiatives like airdrops in order to distribute their digital assets to as many individuals as possible.
Liquidity
In the crypto market, the higher the liquidity, the easier it is to trade a token. Most investors are likely to inject their funds into a token that gives them the ability to sell as they please. In addition, leading crypto exchanges will only list tokens with sufficient liquidity.
Security
Some developers ignore the security aspect of their crypto projects, making them vulnerable to attacks. To gain investors’ trust and convince crypto exchanges to list your token, you must address all vulnerabilities that are likely to be exploited by attackers.
Once a developer has implemented all the above recommendations, the chances of their token getting listed on a well-known exchange increase massively. It is worth noting that various exchanges have specific token listing requirements. Here are some:
Binance Token Listing Requirements
Binance is the largest crypto exchange by trading volume, and that explains why most new tokens aim at being listed on this trading platform.
To get your token listed, you must fill out the application form provided by Binance. According to the exchange’s CEO, Changpeng Zhao, providing misleading information will disqualify your application.
Zhao once disclosed that the number of token holders is the most important factor for getting your token list on his exchange. It is still not clear how much Binance charges for token listing. However, the company donates the listing fees to its charity program, which can be monitored on the blockchain.
Coinbase Listing Requirements
Similar to Binance, Coinbase requires you to fill out an application form. Once done, the completed form and the token in question undergo a thorough evaluation based on the digital asset framework established by the exchange. After approval, you can choose your token to be listed in four ways: post-only, transfer-only, full trading, and limit-only. Coinbase has not publicly revealed its listing fees.