Listing is a difficult process – even more so in terms of preparations than of listing proper. Fulfilling all the requirements may take a lot of time and money, especially if you are willing to deliver your coin to a big exchange. Even if a company has enough capital and risk appetite to try it, approval is never guaranteed.
Many companies claim to get their clients on crypto exchanges with 99% success rate. However, it is important to understand that these companies are just middlemen, and they do not make the final decision. Such form of cooperation can help to prepare all the documents in an appropriate manner, but it is always the project team that bears the main responsibility.
That is why it is important to thoroughly research and analyze what exactly is happening at every step. Below, we will review five main steps that must be taken for successful listing.
Listing creates an opportunity to users who want to buy coins. Usually they consider it an investment, especially if the project is new and looks promising. They buy tokens and hold them, expecting the price to rise sooner or later.
Every new exchange is a new opportunity. It always brings more customers and more media attention to a project. However, the main objective of this operation is fundraising. Coins need to be sold to make listing a financially viable business process.
That is why every new inclusion in a crypto exchange must come with a promotion campaign. It is important to get users to know that the coin will sooner be more available and widespread.
Preparation of the community consists of two parts: announcements for current holders and a promotional campaign targeting a potential audience. The first part is the easy one. Usually, crypto projects simply use their social media to let current investors know about upcoming events. This does not take many resources, since most of your community usually opt in by themselves. All the project team need to do is just keep their holders in the loop.
Promotional campaign is the expensive part, but it is significant. One of the objectives of listing is to attract new audiences, new funds. A company should use all available and well-targeted channels of promotion. Mid-sized exchanges usually assist with promotional banners on the website and announcements for their own social media communities. In case of big exchanges, for example, Binance or HitBTC, all kinds of advertising will cost an extra amount.
Generally, there are two types of exchanges: DEX (decentralized cryptocurrency exchanges) and centralized exchanges. The first type is just a kind of blockchain platform that keeps records of transactions in different cryptocurrencies. Such platforms are easy to access. Their commission is affordable even for small-cap projects, and all verifications are conducted automatically. The only requirement is that a coin has to be capable to procure transactions. That is why it will not be difficult to cover almost all DEXes in a short time.
As for centralized exchanges, there will be a completely different process. Every project should aim to cover as many platforms as possible, but listing on a centralized exchange usually comes with a vast amount of expenses. That is why you should choose wisely.
Finally, after this step is taken, the project team should have a complete list of exchanges they are going to apply to. It is important to note that listing is a process that must be supported. Hence, every inclusion must be planned. Obviously, smaller exchanges will be the first in the queue, and the project should aim to hit a bigger platform every time.
Listing is a special procedure that requires not only technical, but also legal support. The team usually focuses on the project, trying to provide the best service, the fastest transactions or the most secure digital wallets. All of this makes sense, but legal matters also count. Exchanges do not want to get a lawsuit for every new coin they accept. This especially affects exchanges that operate with regular money.
Startups usually do not have much of legal experience. That is why they need reliable partners for successful listing. There are plenty of legal companies and lawyers specializing in the blockchain niche. Their service will be quite of an assistance if the project does not have its own legal department.
If we are talking about top exchanges, work with intermediaries is unavoidable. These platforms usually do not bother themselves to contact every applying project personally. They delegate these matters to their partners, which means an additional commission. Unfortunately, sometimes it is the only way to contact a big platform. As it was said before, listing on top exchanges is quite an expensive affair.
Due diligence is verification of every project component. Exchanges must make sure that a coin is technically and legally acceptable. Some of them charge extra commission for that work. In some cases, exchanges oblige the project team to pay for due diligence only if the coin has been denied. Otherwise, they just get some percentage from sales.
The bigger an exchange is, the more thoroughly it conducts a due diligence. Project executives have to understand that even if they paid all the commissions and fulfilled all the requirements, listing is still not guaranteed. Most exchanges explain the reasons for denial, so the company can prepare better for the next try.
The procedure starts with verification of the information provided by the project team. Filling the form is the first step of contacting an exchange. Platform representatives check all the available data and often request additional information.
It goes without saying that due diligence implies providing all the available documentation. It should be prepared accurately and with accordance to the exchange's rules. After that, all the team has to do is wait for the decision or additional requests. This process usually takes up to a couple of weeks. If it ends with approval, exchange representatives declare the listing conditions, and the coin quickly appears on the platform, open for trading.
Listing is not a one-time shot. It is a long campaign, which has covering as much platforms as possible as its main objective. It ends when your project has such a great success that exchanges start to contact you asking for listing. Until then, your promotion campaign should never end, even if your coin is already listed on a number of exchanges and is going strong.
Big platforms tend to discard the coins that do not have enough daily volume to remain profitable — and being deleted from an exchange is a great damage for reputation. That is why a post-listing campaign is vital. The team must keep their project in the public eye to stimulate trading. This could be arranged in different ways, starting with advertising and ending with new features. The most important thing is ongoing development and improvement. Listing is a good way to raise funds and make it possible.