What is Cryptocurrency Listing and What is it for?
By CDLCONLINE 24 on Altcoin Academy
It is important for startups, which launch ICOs to be recognized as reputable exchanges for crypto trading. Firstly, it affects trust for new blockchain projects. And secondly, it increases the chances that the cryptocurrency will grow in value because more investors will see it. The procedure for admission to trading on the cryptocurrency exchange is called listing. CDLCOnline24 experts spoke in detail about the features of this process.
The article talks about the basic requirements for tokens, the importance of stock listings and other details that should not be overlooked. You will also learn how to make cryptocurrency quoted on a trading platform and gain recognition by the general public.
What is Cryptocurrency Listing?
Listing is the admission of securities of a particular company to trade on the exchange platform. If the company is thinking about issuing shares or debt obligations, this procedure is considered the main one. In order for assets to be quoted on the stock exchange, it is important to fulfill general requirements (sometimes individual ones are also put forward).
Listing of digital coins on the exchange for crypto trading is no less important than a similar procedure for traditional assets on the stock exchange. Any ICO will end at some time, but this should not affect the number of interested in the success of the blockchain project.
Adding a coin to the exchange list will increase its price by about 15–20%. That is why all companies after the Initial coin offering try to add a token to reputable trading platforms. This is a guarantee that the issuer will have enough money to develop a blockchain project.
If liquid crypto trading platforms support the coin, it will get a higher chance of success. This is the basis for building a positive reputation that is valued by investors.
What are the listing requirements for cryptocurrency?
Today, more than 500 exchangers work at the crypto market, and almost every day a new one appears. Each platform has its own listing requirements, but there are general queries that should be considered:
- benefit of the blockchain project. It must be profitable to the crypto world and the original. It is important that the coin is provided with high-quality services or goods. Particular emphasis must be placed on uniqueness. This will allow not only to get into the listing of the exchange for crypto trading but also to take its own place in the industry;
- project code and design. If for young cryptocurrency exchanges these characteristics are not important, but authoritative resources will definitely pay attention to them. Only those blockchain projects that have high technical characteristics, are distinguished by safety and transparency of work will be able to go through a rigorous selection;
- full information about cryptocurrency. Exchanges for crypto trading request information about the project team, the size of the token supply, commissions, business plan, etc. Often, code verification is required;
- passing the Howey Test. This procedure allows determining whether the token is considered an “investment contract” or not. If it is revealed that the coin is quoted as a security, the exchange will refuse listing in order to avoid unnecessary legal issues.
According to experts of CDLCOnline24, these are the basic requirements for cryptocurrency listing. However, it should be borne in mind that the trading platform has the right to put forward additional ones. Be ready!
The first thing you need to do is to contact the crypto-exchange staff. The official websites of trading platforms usually have special pages. Here you can submit a request for consideration of a blockchain startup. Please note that listing often needs to be paid (the cost varies from 50,000 to 1,000,000,000 dollars). Cdlconline 24 wishes you success in listing.
