It is the dream of every new token to find its way into the coin market. With very few utility altcoins achieving their intended purpose, the Holy Grail for most coins is to reach a high level of speculation on the coin market to drive up the profitability of their assets post-crowdsale.
With traditional exchanges, getting listed is a sign of market interest. For NASDAQ, for example, this is demonstrated by having a minimum number of publicly-traded shares, having a minimum BID or closing price for those shares, and a minimum number of shareholders representing a trading average of more than a million over the past year. So, how are altcoins listed?
The Rules of the Game
Altcoins are not so different from stock in the sense that they must demonstrate a market interest in order to be selected for listing. This definition differs depending on the exchange.
For GDAX, the exchange managed by the wallet-provider Coinbase, the criteria is defined in its Digital Asset Framework. The framework looks at criteria such as:
- how the coin was sold
- whether all parties are being economically incentivized
- whether there is driving demand for the asset
- whether Coinbase can legally offer the asset
To date, the only altcoins that satisfy GDAX's requirements are bitcoin, Bitcoin Cash, Ether, and Litecoin.
Bitfinex, another major coin exchange, posts on its website:
" factors go into our decision-making process when considering adding a new token to Bitfinex. Some of these factors include user requests, shareholder interest, market capitalization, token design parameters, and a thorough assessment of the token's development process; including, but not limited to, the team behind the coin and their strategies for solving technical and nontechnical problems."
Bitfinex's criteria for inclusion is less strict than GDAX and the exchange accordingly has over 20 coins available for trading, including bitcoin, Bitcoin Cash, Monero, IOTA, DASH, and Ripple.
Bittrex divides its review process into a preliminary review, wherein a Bittrex employee determines if a full listing review is warranted, and the full listing review. This full listing review includes a legal compliance review and evaluations of the coin's usefulness, novelty, and demand, as well as the technical reputation of the coin's team. Bittrex's criteria permits the listing of hundreds of different currency-coin pairings.
Before investing in ICOs, do your research!
Understanding What Exchanges Look For
If, as an investor, your goal is to focus on ICOs that have tokens that would likely end up on the market, there are certain indicators to look for:
- First, most exchanges avoid securities-type coins. This is because of questions about legal obligations under the national regulators. Additionally, new currency and reward-types coins are unlikely to be added, due to a desire to have new coins have a demonstrable purpose.
- Liquidity is king. A token that does well during its ICO but falls off afterward is unlikely to be listed. It is important to pick ICOs that are likely to have sustained demand.
Conducting the due diligence needed to evaluate the technical and market potential of any considered new investment is always the wise course. The more you know, the better your investment choices are likely to be. Read Bitcoin Market Journal and learn to invest like a pro!
token companies often have to pay exchanges to get listed, unless the token is super popular and super liquid, exchanges would want to list them.
I like Savedroid ICO as it is listed on a exchange even before the main sale :)
Thanks for your information good to know
Wow! This is a wonderful educative post .I never new the criteria of blockchain exchange to accept new coins until I red your post. During the course of my reading I also found out the reason why bittrex has so many coins listed.thanks very much for widening my horizon in this journey of tokenized world.I really appreciate .
nice information of Crypto Exchanges
Thanks for sharing.... Good post friend i like it....
Listening to CZ from Binance, I think they have a great process, to the point that the team that undergoes the investigation and process is not publicly known. There can be no interference, meddling or manipulation in the qualifying process.
what are you doing to my account? so upvote you automatically
are you hacker?
really very beautiful photo my friend love it very much.follow me @alexandriya
Congratulations @bitcoin-journal, this post is the tenth most rewarded post (based on pending payouts) in the last 12 hours written by a User account holder (accounts that hold between 0.1 and 1.0 Mega Vests). The total number of posts by User account holders during this period was 3599 and the total pending payments to posts in this category was $12865.19. To see the full list of highest paid posts across all accounts categories, click here.
If you do not wish to receive these messages in future, please reply stop to this comment.
🌎Halo Platform has announced a new campaign on Telegram. Users can vote for their favorite project that can win a FREE listing on Halo Platform and a marketing package valued at 25,000 USD.
Read more about HaloDEX and its campaign on Telegram to know more:
👉https://is.gd/zU8Qa0
👉https://t.me/HaloDEXListingCampaign