Coin Listing Criteria on Cryptocurrency Exchange
This discussion paper takes reference to coin listing requirements based on some of the major exchanges such as US-based Bittrex. It is intended for illustrative purposes and to be used as reference for exchanges who are looking for guidance and reference for listing criteria.
What are the general review process and steps?
There are two main reviews that exchanges usually complete before a token may be listed:
- Preliminary Review: Generally there is an initial review to determine whether a token that seeks to be listed should proceed through the more thorough full listing process. An exchange employee will usually notify you if your token has been selected to undergo the Full Listing Review.
- Full Listing Review: This is a more in-depth review of the token. Exchanges may request certain documentation through this process, perhaps including an executed Non-Disclosure Agreement (“NDA”) and Listing Agreement. A committee comprised of exchange employees will determine if the token meets their listing criteria (see below), and whether it will be listed on the Exchange. As part of this review, exchanges may consult with outside advisors.
What does the review entail?
The exchange may review several items when determining whether to list a token, including but not limited to whether it is an innovative and/or new Blockchain or has an innovative use case or application. Factors considered include, but are not limited to:
- New blockchain features
- Significant improvement over existing blockchain
- Interesting, innovative or unique application
- Usefulness of use cases
- Technology experience and reputation of token applicant and the team
- Market interest
What are the general information requirements for exchange listing?
Taking example from the required submission information from Bittrex:
- Coin Name
- All information necessary to create a corporate account on the exchange
- Coin Name and Proposed Ticket Symbol
- Description of Token
- Launch Date
- Github Link
- Did you raise money or digital currency to launch your coin? If so, please provide information on your raise.
- Did you have a pre-mine? If so, how much is it? Is any of it escrowed?
- What is the maximum money supply of your token?
- What exchanges are you currently on, if any?
- Official blockchain explorer
- What is your Transaction Fee for a transaction?
- Link to your coin/token whitepaper
- Social media information, including official website, twitter account, facebook page, telegram account etc.
- What is your current deployed use case for your token?
- If you are an ETH token: (i) Was a code review performed of your smart contract? If so, by whom? Please provide all relevant documents? (ii) What is your smart contract address?
What are the compliance issues we need to be aware of?
Compliance review typically requires the applicant to provide a legal memorandum or opinion from a qualified counsel. The nature of the legal opinion may differ depending on jurisdiction:
- In the US, for example, the memo or opinion should present the factual and legal basis for its conclusion that (a) the Candidate Token is not a security under applicable securities laws, and (b) that trades of the Candidates Tokens would not be subject to regulation under any applicable laws applicable to trading of commodities.
Additional Exchange Considerations
As you may be dealing with a high volume of coin submission, some of the additional considerations may include:
- Resubmissions for listings are generally allowed after 2–3 months of the last rejected submission.
- Inclusion of “spotlight” feature to highlight particular coin listings for a spotlight fee
- Option to include a crowdfunding campaign feature on your exchange
- Decision of whether to charge a listing fee for tokens on your exchange
