Troubles of Crypto — Shady Exchanges (Part2- Listing & Listing Fee)
This part of article is in continuation of Part1 of the multipart article “Troubles of Crypto — Shady Exchanges”
2. Listing methodology
Listing is a highly profitable and moneymaker game for a lot of crypto exchanges. Some crypto exchanges are just surviving on listing spoils from coin/token. Listing a coin is purely a management decision, they can list any coin or not, that’s fully up to crypto exchange management except for some very less numbered exchanges that go by voting procedure etc for listing a coin/token on their trading platform.
If you are an ICO promoter than what you need most is information regarding getting listed on a crypto exchange else investors are not gonna be much interested to buy your token. If you cannot sell or trade token chances are less that you will invest in that Coin/Token. Hence listing on exchange even small or new crypto exchange becomes must for ICO owners, those ICO/Projects who fail to get a listing of their token at any exchange has no real worth of token at the end of the day.
Listing by an exchange is totally not transparent and like venturing in unknown realms. Most of crypto exchange do not have info regarding it except for very few, it’s like you cannot get proper information regarding how to list your token/coin at most of the crypto exchange, many even don’t have a page for it.
A host of crypto exchanges have a listing fee which is not visible publicly but is informed when projects approach them. Crypto exchanges already have listing contracts with ICO promoter sites and network, which is easy money but a huge loss to ICOs/Projects, as listing fee varies from 1–500+ BTC than efforts to get listed at multiple exchanges means a significant cut of fund just to get listed.
3. Listing Fee
The listing fee is like a gold mine to crypto exchanges, the harder you mine/bargain the more you can get. Due to this aspect, usually exchanges don’t list out their listing fees, so they can learn about the project and ask a good amount out of fund raised/expected to be raised for the project. If there is proper information and commitment on listing fee by exchange, it will be very easy for a coin promoter/ Token creator to get listed and devise a proper plan for exchange listing which might improve surviving chances of them.
At the moment ICO/Coin promoters are in dark about the aspect and don’t know the charge until they approach the crypto exchange. While some top exchanges with good volumes don’t charge listing fee, they are numbered few in hundred of crypto exchanges.
For a new project, listing fee varies like-
- Small crypto exchanges- 1 to 10 BTC
- Medium crypto exchanges — 10 to 50 BTC
- Big crypto exchanges — 50 to 500+ BTC
for existing projects fees depends on various factors like listing on other exchanges, user requests, fund raised, popularity etc. as big names of Coins/Tokens usually get listed at most of crypto exchanges for user convenience.
Listing at a crypto exchange for new projects is a task which is tough and not easy unless you are interested in getting your wallet light, which in turn affects fund holding of ICO projects. In most of ICO project whitepapers, this field is not paid attention to and it cost them much higher when they want to get listed.
While some exchanges list Coin/Token by their merit and future applicability or by user requests/input for the same, most of other decide by listing fee.
Listing a Coin/Token for free or an actual effort fee( time/fund spent to create relative function as wallet. trading pair, system change) is what is needed by cryptomarket to survive in a world where it is not much favoured, But it is not happening.
An exchange is supposed to be just a platform for users to trade, users must be driving factors and deciding factors for the same, what should be listed should be dependent on them not on people who don’t trade them.
To be continued in Part 3. Keep surfing.