What makes listing on exchanges so important for ICOs?
A cryptocurrency exchange is a market that matches buyers and sellers who want to trade securities, commodities, and other financial instruments. Of course, It is always possible to go to the private individual and they will transfer coins into your wallet. However, exchanges are institutions which are designed to insure fair trading and the efficient dissemination of price information, operating 24/7 and creating a more secure place for trading.
Regulatory policy towards token selection is quite flexible. Trading pairs include not only ERC 20, but also utility and security tokens, blockchain integration projects, and more. Also, there are platforms that would be happy to list projects not only when the ICO has gone through the sale stage, but also when they’re still in the pre-ICO stage. Because of this flexibility mentioned above, there are a huge number of new projects being placed on exchanges.
AssetRush has analyzed the main reasons…
…WHY NEW PROJECTS DESIRE TO BE LISTED ON AN EXCHANGE….
To raise capital… Without the support of major exchanges, buying and selling a digital asset seems to be quite challenging. Listing on exchanges usually results in a price boost for the token. Wise blockchain projects, before choosing an exchange, thoroughly analyze adjusted and reported trading volume provided by Coinmarketcap . Another way to check whether a platform is suitable for the coin is to take into account the performance of trading pairs on that exchange. For example, one of the success story by Exrates indicates the increase of trading volume by 15 times, as well as a boost of token price by 3 times. Success stories let projects consider the possibility of choosing this exchange.
To increase public awareness… It is NOT only all about the money, but also for more people to know about the project. Usually cryptocurrency exchanges offer a marketing campaign, which, besides placing on your project the web page, can include marketing support post listing, introduction to market and/or private trading API, announcement emails to registered traders and/or social media subscribers, listing confirmation for the community, etc. Never underestimate the power of social media. The number of people following the Coinbase on Twitter is equal to the population of Сyprus, and all of them will know about the product.
To attract investors and future shareholders… Cryptocurrency exchanges allow local investors to invest and gain profits using their own local fiat currency. The creation of a public market at an externally agreed upon price stimulates liquidity in the shares, and gives shareholders the opportunity to fully understand the value of their holdings. This can help to broaden the shareholder base, and enables existing investors — whether venture capitalists or other owners — to exit, if they so choose, either on flotation or at a later date.
Hopefully now you fully understand the reasons why projects consider listing on an exchange. If you still have any questions, always feel free to ask AssetRush. We work with 100+ exchanges. The opportunity to collaborate with these platforms give us inside information about policies and the listing conditions they follow.