Exchanges are rushing to list tokens — is it healthy for an exchange to do so?
Considering listing defi tokens on cryptocurrency exchanges is now rapidly growing. Defi market is booming along with token listing.
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Currently, there are over 6950 cryptocurrencies with over 320 billion dollars of combined market capitalisation. With the process of developing a crypto industry at a very fast pace, investors are ready to trade in this market that is never dormant. Users switch to so-called exchanges in order to engage in cryptocurrency trading.
Exchange of cryptocurrencies or digital exchanges of currencies are platforms which allow customers to trade digital currencies for other assets. Fiat money or various digital currencies can be exchange in cryptocurrencies. There is a myriad of trade platforms for crypto-currency today which meet the rising needs of the crypto community.
In our country, marketing and the media make a big difference. Therefore, the list of exchanges with a proper reputation will make a huge difference often. The increase in value will mean that the ICO projects which hold a significant part in their tokens will be able to continue to operate as a whole. This opportunity goes for all kinds of tokens, not only just ICO or IEO.
In terms of a coin, after the official end of the token sell, market participants may lose a chance to buy the project’s cryptocurrency. Here there are exchanges which come to save tokens. The listing of an exchange token may up to 20% because of different data. This is exactly why the listing is one of a company’s most important tasks after a token is carried out. Another explanation of why the exchange token should be identified is for the requests from the community.
What are the factors to measures while choosing an exchange for listing?
Despite various proclamations, many people do not yet know how free and most likely rather troublesome the token listing on the exchange is. However, here is a list of the basic requirement to look for while listing a project on the cryptocurrency exchange platform.
· Daily trading volume is a major factor while criticising the strength of exchange for listing an ICO/IEO.
· Traffic volume is also needed to be considered to understand the potential impact of the project in a community.
· Quality and quantity are two essential factors which help protect to allure attention of the investors.
· A strong background check is highly recommended before choosing the exchange for ICO/IEO.
· Social presence and prompt response also considered as crucial elements to check. More active the exchange is the liability goes along with it.
At last, the price for the listing an ICO/IEO. Famous exchanges are charging massive amount for listing, while new exchanges can give you some relaxation. But other factors may need to reconsider again. You may not find all essentials in one basket.
Now here are some basic facts where exchanges are looking before listing the ICO/IEO. A project must use the blockchain in a different manner to fill any void on the market or offer a better alternative to an existing blockchain in order to raise the likelihood of a token listing.
How difficult it is for an ICO or IEO to get enlist on an exchange?
A wide variety of information on your project would include several exchanges, including technical requirements, team information as well as token sale information. To check the security and robustness of the project, exchanges need to see a token code for themselves. Many trade units would list tokens and digital currencies only to prevent unnecessary legal problems as well as to comply with the law.
Now, it seems exchanges are in a little rush. The factors which should be in the main concern for listing an ICO/IEO, most of the exchanges are avoiding them. While ICO/IEO listing goes through a long procedure for security checks, it is hard to get listed in the exchange.
How is defi token listing an easy shortcut for exchanges?
Calculating the difference between ICO/IEO and defi tokens, defi faces less security protocol while listing on the exchange. The product is new and the regulation could hold the growth of blockchain technology. Defi token first came in the market in the year of 2017. From then, this sector didn’t show possible growth. However, recent activities in the sector attract the whole market. The performance of the defi tokens is quite impressive and investors are growing faith within it.
Here come top exchanges to play their crucial role. While defi market is booming, exchanges don’t want to stay behind. Binance smart chain has already announced to build defi system to enhance the freedom of money. Many DeFi projects either try out new ideas or transfer their protocols into the Binance Smart Chain.
Also, Huobi Global’s main page lies at the new listing path Huobi Inno Hub. It has been developed to explore the next generation of innovative and potential applications that will reorganise the worldwide economy and help Huobi Global become the core platform for a next-generation encryption revolution. Huobi Global launched the DeFi section and 26 new projects covering a variety of applications, including lending, forecasting, DEX, derivatives and public chain, etc.
These projects Wrapped NXM, Curve, Aave Protocol, Synthetix, Compound, Tellor Tributes, MakerDao, ChainLink, Republic Protocol, Waves.tech, Kyber Network, Terra, Balancer, Bytom, Akropolis, NEST Protocol, Libra Credit, The Force Protocol, AirSwap, Hydro Protocol, SwftCoin, etc.
These are the challenging projects that demonstrate potential market strength. These two major exchanges are on the verge of listing projects. Defi is also less regulated, so listing challenges isn’t a big problem. In another case, the defiant market increases market strength so the listing challenging token is now a profitable trade plan.
Since defi tokens need not go through the long security protocol, they also create an exchange confidence gap. When defi token is listed in the exchange, it has a high threat to the safety system without a proper background check. An error can downgrade the reputation of the major trade with a token. Thus it can be profitable to rush to list defiant token, but less security can also be damaging in the future.
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