Token Listing Overview
It’s hard to keep track of the hundreds of new cryptocurrencies that are created every month. And it’s too bad, as many of these new tokens are listed on cryptocurrency exchanges, making them readily available to investors.
As a project founder, you have likely read several articles to learn what exchanges look for when reviewing new tokens. At this point, you may have realized that there is no industry standard for token listing. The bottom line is that the process is typically time-consuming and costly.
Keep reading to learn what 7 key questions to ask when listing your cryptocurrency on a crypto exchange.
Already a pro? Learn how to save time on your future listing with CoinFLEX’s quick and transparent token listing process.
1. What is a token listing?
A token listing is the process of getting your cryptocurrency listed on crypto exchanges; this could be a decentralized or centralized exchange. Each exchange has their own listing requirements, so it is important to understand the details. Read about CoinFLEX’s listing requirements tutaj.
2. What are the benefits of listing a token?
One of the benefits of listing is that it will give your token more exposure. Once listed on an exchange, it will be seen by a larger audience of potential investors and traders, helping to grow your community.
If your token is already listed on a spot exchange, it’s helpful to expand the list of venues on which it trades to futures exchanges. Listing on both spot and futures exchanges can help to increase the liquidity of a cryptocurrency, as well as giving investors more choice in how they trade.
Futures exchanges like CoinFLEX are where investors trade contracts for future delivery of a cryptocurrency at a set price. This type of contract is useful for hedging against price movements or taking a position on the future price direction of a token.
3. What do you need before applying to list your token?
In order to list on an exchange, you may be required to have the following:
- A project with a working product
- An ERC20 token generated on the Ethereum blockchain
- A smart contract that is audited and published on Etherscan
- A whitepaper outlining your project
- Social media presence for your project
When applying to list your token, you will likely be asked for some or all of these items.
4. What do exchanges look for when reviewing new listings?
Exchanges consider a few factors to review and list a new token. Oftentimes, they want to see that your token is high quality and has a strong development team behind it. They also want to see that there is trading demand for your token, and that it is likely to trade well on their platform. Finally, they will also consider the token’s listing fee when making their decision (more on this below).
5. How much does a token listing cost?
The cost of a token listing varies greatly from exchange to exchange. Some will charge a one-time listing fee, while others may charge a monthly or yearly fee. The fee itself also varies greatly. Do your homework and ask whether the listing fee you are being asked for makes sense.
6. How long does it take to list your token on an exchange?
Listing a token can take anywhere from a few weeks to several months. Each exchange has their own method and timeline. On CoinFLEX, once you submit your application, it only takes a few minutes to get your token listed on the platform.
7. What are the risks associated with new token listings?
First of all, as explained in Question 5, the listing fees can be quite high. The cost itself is a risk for many projects.
Secondly, some exchanges require a non-refundable listing fee deposit upfront upon signing a listing agreement. This means that you are paying a fee without a listing guarantee, in effect paying a sunk cost.
Finally, keep in mind that your token can be delisted from the exchange if trading volumes are low.
Listings can be a great way to increase exposure and liquidity for your token project. If you are planning to list a token, make sure to conduct due diligence and understand the risks involved.
Listing your token on CoinFLEX
There is no industry standard for token listings on a centralized exchange. As a result, the process can be both time-consuming and costly. CoinFLEX is launching Permissionless Listing so that anybody can list a token on CoinFLEX quickly and easily without complicated approval requirements, putting more control back into the hands of our users. The best part? Zero fees.
We believe listing a token shouldn’t be lengthy or costly. Instead, listing should be transparent, automatic, and permissionless.
If you’re looking for more information on how to list your cryptocurrency on CoinFLEX, check out this article.