Common Pitfalls During Exchange Listing
Most ICOs and STOs that want their token to succeed make the decision to place their token on an exchange. We previously explored why listing on exchanges is so important for ICOs (and now, STOs), and in short, it all boils down to the fact that listing makes your coin more legitimate and raises its value by about 15–20% (or decrease, depending on the conditions). Listing on exchanges can be a tough process though, and if you’ve never been through it before, mistakes can be made. Some of those mistakes may be minor, but others can cause you to not be listed on an exchange, thus your project gets less promotion. Here are a few common mistakes that projects make when listing, and how to avoid them:
- Not defining whether your token is utility or security
This step may not seem important, but knowing whether your token is a utility or a security token is vital to the exchange process. Utility tokens are the most popular, and therefore the easiest to get listed on exchanges. Security tokens are now on the rise, but there are fewer security token exchanges than there are for utility. This is why defining your token type is important. Utility tokens are simply user tokens and can be purchased and used on a platform. But security tokens are tokens that are backed by actual assets. Define which one you have, and you can start researching exchanges.
2. Not defining what kind of token you have
There are different blockchains and, therefore, different blockchain protocols. A decision must be made as to which blockchain and protocol will be used for your token. This way, you can start researching exchanges that will work with your token. Most ICOs tend to be on the Ethereum blockchain (ERC-20) because of its smart contract capabilities, but here is an article the describes the difference between five major blockchain protocols.
3. Not doing a proper exchange search
Now that you’ve defined whether your token is utility or security, and which blockchain it will be built on, the next step is to list your token on an exchange. But a common mistake made here is not doing proper research. There are many exchanges to choose from and you need to decide which one is right for your token, and also supports it. AssetRush can help with this step as listing on exchanges is our job. We can consult with you and help you figure out which exchange is your perfect match.
4. Not paying attention to exchange listing fee
While researching exchanges, it’s imperative to pay attention to the listing fees as some can be as low as 1-5 BTC but others can have a much higher price (up to 35 BTC and even more). Don’t set your heart on one exchange only to find out the listing fee is astronomically more than you were willing to pay. Keep your budget in mind while researching or asking for a consult.
5. Not establishing good communication with the exchange
Once you’ve chosen your exchange, your next job is to get in contact with it. Some exchanges are easier than others. But say you’ve chosen an exchange that is perfect for your coin, but you have no idea how to contact them. Don’t let it just fall to the wayside, you have to contact them. But this can be hard with some if they rarely reply or they have a high level of bureaucracy. But don’t get discouraged, there’s a way you can avoid this problem and all those before it.
AssetRush is here to help! It’s literally our job to rocket the listing process, so jump on board and let us take your project to the moon (or to an exchange).
We can help you define your token specifics and find the perfect exchange to list on. All you have to do is contact the AssetRush team for a free consultation by going to our website or send us a message on Telegram. So give your token a fighting chance by avoiding these common mistakes.
