Exchanges are adult occupation in the cryptocurrency sector. With increasing competition from over 500 exchanges and pressure on trade fees from decentralized exchanges and zero-fee deal platforms, exchanges are looking to generate tax income by charging list fees .
This presents a barrier to entry for many tokens, particularly those from small ICO-funded blockchain startups. Just what can startups expect in the way of list costs today ?
How Much Does a Token Listing Cost in 2018?
According to data received by Bitcoin Market Journal, the majority of digital currency exchanges charge a list fee. The tip, however, varies greatly and is normally tied to the size and popularity of the exchange .
- For small exchanges, the listing fee can be as low as 1 to 5 BTC ($6,000 to $30,000), which is arguably affordable for most blockchain projects.
- To get a cryptocurrency listed on a medium-sized exchange, however, there is a substantial jump in listing fees. The prices that second-tier exchanges charge range from 10 to 50 BTC ($60,000 to $300,000), which is a substantial amount for a startup that managed to raise less than one million during their token sale, for example.
- The top tier exchanges with the largest trading volumes will charge between $1 to $2.5 million for a token listing.
There are some exchanges – modest, metier, and large – that truly do not charge for keepsake listings. however, these are often besides the exchanges on which it is most difficult to get listed as they base their list decision strictly on the merit of the token and the stick out behind it .
interestingly, while popular altcoin change Bittrex does not charge a list fee, for case, there has been an incidental recently where the exchange asked the Bitcoin Gold developer team to pay a tip for their digital currency to remain listed on the rally .
According to a statement by Bitcoin Gold, due to the losses that Bittrex suffered during the 51 percentage attack that Bitcoin Gold ( BTG ) suffered in May, Bittrex asked the Bitcoin Gold team to cover a function of the losses – deserving 6000 BTG – to “ take responsibility for [ their ] chain. ” When the Bitcoin Gold team refused, the commute informed the involved parties that they will be delisted .
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Why Exchange Listings Matter
For ICO-funded cryptocurrency projects, getting their digital token listed on numerous reputable exchanges can be a pivotal agent that determines the success or failure of the projects .
The more investors have access to a nominal, the more probable they will buy it. conversely, the more unmanageable it is to buy a token, the more likely it is that it will struggle to gain or even maintain its value over prison term .
There is a positive correlation between the value of a cryptocurrency and the number of exchanges on which it is listed. The more reputable the exchange, the better .
For case, when it was announced that Litecoin was to be listed on leading US cryptocurrency exchange Coinbase, the price of Litecoin ( LTC ) jumped by over 25 percentage and subsequently rallied to a new all-time high in the months to follow.
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The same phenomenon has been experienced by other digital currencies and tokens when they were listed on major exchanges, specially those with decree currency gateways in major markets such as South Korea, Japan, and Europe .
furthermore, having a token listed on reputable exchanges adds credibility and boosts the reputation of a blockchain project as alone high-quality projects ’ tokens are perceived to be listed on the biggest exchanges .
How to Get Listed
The list process differs among different exchanges. however, the cosmopolitan approach is similar at most cryptocurrency trade platforms. The key factors are :
- Pristine code and a killer solution to a real-world problem
- Transparency of platform, team members, legal structure, and tech specs
- Not running afoul of securities law
- Possible payment of a listing fee
first, a cryptocurrency project must highlight a degree of quality combined with error-free, well-written code. Blockchain projects that are utilizing the blockchain to tackle real-world challenges in an innovative way and that have a team composed of know developers are more likely to have their list request approved by large exchanges .
second, a cryptocurrency project will need to provide a wide range of information about its platform, digital nominal, and team members. The needed data may include the project ’ s code ( if it is not open-source ), identification of the project ’ south kernel team members, the legal structure of the party, and technical foul specifications such as maximum token supply, barricade rewards, transaction fees, etc .
third, many exchanges prefer to list tokens that can not be classified as securities. Hence, tokens that practice for number may have to pass the “ Howey Test. ” Some exchanges have this as a prerequisite to ensure they themselves will not run into any trouble with the fiscal regulator for providing a platform for securities trading without the needed license .
ultimately, even though most exchanges claim to list keepsake on merit, the world is that the majority of exchanges will require blockchain startups and cryptocurrency projects to pay a list fee .
The Bottom Line
By and bombastic, exchanges are looking to generate tax income by charging list fees. If you are looking to list your mint on an exchange, expect to pay :
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- $6,000-$30,000 for listing on a small exchange
- $60,000-$300,000 for listing on a medium-sized exchange
- $1M -$2.5M for listing on a high-volume exchange
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