So you probably got a crypto token developed with the help of a blockchain development company and maybe, launched a token issuance.
It’s no secret that there are new and exciting opportunities around cryptocurrency. And it’s only natural to find investments that dazzle your eyes. These investments are built on the foundation of digital currencies. So when your curiosity peaks you’d make a move to acquire a token. Once you’ve launched your token the next step would be listing the crypto tokens on an exchange.
This article will take you through that process. Let’s start by understanding a cryptocurrency exchange.
What is a cryptocurrency exchange?
A cryptocurrency exchange is a platform that paves the way for the transfer between digital currency and fiat currency. The exchange provides the space for the flow of crypto coins between different parties involved. It facilitates the system of obtaining and liquidating tokens. The next question that pops up is why you need to list tokens on a cryptocurrency exchange in the first place.
Listing your token can increase the value of the token. When you list your token after an ICO it becomes available for potential buyers.
It also adds credibility to the token. Since we covered the “What” and “why”, we’ll delve into “how”.
How do you list your crypto token in exchange?
Almost all crypto token exchanges demand a listing fee. This can be paid with your bitcoin or other cryptocurrencies. Fees vary from exchange to exchange. However, certain exchanges allow you to list a token for free or pay with your project’s token itself. But, to get that, you need to have a strong team of advisors, executives, and influencers.
1. Choosing a cryptocurrency exchange platform
Let’s go over that process. The first step to this would be to choose a good exchange platform. One criterion is to know if the exchange circulates tokens similar to your tokens. Especially if your token is new. Ensure the reach of the exchange is adequate based on your needs.
Another is determining if it’s a centralized exchange or a decentralized exchange. A centralized exchange is operated and controlled by a company and acts as a third party between a buyer and a seller. A decentralized exchange is a peer-to-peer system without the need for an intermediary.
But it doesn’t support the trading of fiat currencies. Depending on the need for fiat currency transactions that would fall into place. Also bear in mind to find out the listing fee charged by the exchange. Centralized exchanges often hold a fee for the listing and other services. Finding the best exchange for your token is paramount.
After deciding on the exchange platform, the next step is documentation. The exchange then provides a set of documentation requirements to present. This varies according to the exchange you’ve chosen and the token that you wish to list.
Requirements to list your crypto token in exchange?
But there are a few common requirements that we can run through. These are:
a) Information about the token issuer
The token issuer is an entity that generates tokens. Creates and publishes the terms and conditions of the transaction. The issuer conducts the sale with the participants. The information about the team is also a requirement.
b) Information about tokens
The selected cryptocurrency exchange varies depending on the type of crypto token. Undoubtedly, the token must hold good market value and have good circulation in the exchange to make the list. Beyond the name and symbol of the token, the utility of the token, the problem it resolves, and its uniqueness compared to the existing tokens must also be included.
c) Information about the technological background of the token and the platform used to store the tokens.
d) The current status of the token and the mentioned platform.
e) A legal memorandum procured from a professional legal advisor stating the compatibility of the token with the existing legal guidelines is another important requirement.
3. Filing the application
This is then followed by filing the application and presenting the documents along with the fee. A professional listing platform can assist this process. After this, the professional would follow up with the exchange on behalf of you to understand the progress of the application.
After the application, is approved. Then the final steps involve integrating the token with the exchange platform. And closing the payments for issuing a new token and the additional listing fees, if any, presented by the exchange.
The process of listing a token can take up to 60 days.
With the tokens listed in the exchange, you can now carry out transactions without a hindrance and gain credibility for the token you’ve put into the exchange.
Crypto listing on CoinMarketCap
To present a better picture we’ll see how to list a token on CoinMarketCap. CoinMarketCap uses a set of guidelines throughout the listing process to prioritize the requests that come to them. After submitting a well-structured, concise, and organized application they move to check if the tokens meet the criteria they’ve placed. According to the set guidelines, the tokens must:
- Use cryptography.
- Have a consensus algorithm, i.e. it must reach an agreement among the peers about the distributed ledger.
- Use peer-to-peer technology or smart contracts to store the data of the token.
- Have a medium of exchange, unit of account, or a decentralized application.
- Have a functioning website and a block explorer so as to track the progress of the transactions.
- The token needs to be traded publicly and actively on at least one exchange prior to this.
- Finally, the issuer must provide a representative from the project for clarifications that may arise throughout the procedure.
These guidelines will help structure the listing process, although it does not guarantee a listing.
The process of listing can be a little daunting if you’re alone as it involves documentation and choosing a good exchange that suits your needs. Having professionals assist you from the top to the end of the process would ensure greater success and make it easier. We can help you here, so contact us to know more.