Cryptocurrencies quotes on several platforms
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"When Binance…" This is the classic mantra on many of the Telegram communities. For investors who want to generate rapid and high returns on investment, having a token listed on a large list of trading platforms is essential, and the sooner the better! But for besieged project teams with a community to manage, staff to recruit and a decentralized solution to implement, a comprehensive trading list is the least of their concerns. And it's also the most expensive!
Seeing your token listed on a lot of cryptocurrency trading platforms is a guarantee of liquidity, solvency, better available spreads, and of capturing new investors (who discover the project when listing the token on their trading platforms).
Without a trading platform a token is quickly forgotten, even if the background project is very substantial. Cryptotraders abandon the token because it becomes too difficult to trade, buy, or sell. An example, with a spread of 12% on this token which just entered a listing only on switcheo:
12% is not the largest spread seen. On some platforms, there are no counterparts wanting to buy or sell a token. The spread is then at a maximum.
Cryptotraders therefore applaud all listings on popular trading platforms. A token opening for listing on Binance, Okex, or Huobi usually sees its price soar.
With more than 250 cryptocurrency trading platforms, there should (in theory) be no problem supporting new tokens fromICOs. But, as many of these projects discover, it is almost impossible to get a listing on cryptocurrency trading platforms without paying exorbitant fees (up to several million dollars).
Is it worthwhile for a project to invest millions of dollars simply to be listed on trading platforms? No. Serious projects prefer to use their funds raised for more useful purposes. Namely that most cryptocurrency trading platforms organize a monthly community vote which lets a cryptocurrency be listed for free; so why pay for it?The complaining community simply has to support the project and vote for it during the competition.
The "best" cryptocurrency trading platform is the one that allows ALL cryptocurrencies to be traded. A full panel of tradeable cryptocurrencies inevitably attracts all the cryptotraders and has the effect of increasing each cryptocurrency’s liquidity, therefore reducing the spread.
PS: Binance does not list ELASTOS (ELA), although this token is in the TOP 100. That is not reasonable.
ICOrating.com’s recent research shows how difficult it is for projects to get their tokens on a reputable trading platform - and these problems are not limited to registration fees. On the one hand, the project must perform its ICO. The unsold tokens are trashed. This delights the cryptotraders who participated in the ICO (fewer tokens in circulation = price increase). But the demand for tokens on the secondary markets will unfortunately be lower and the trading platforms will probably not be interested in integrating the token into the listing. ICOrating reports that only 22% of the ICOs completed in the first quarter of 2018 were able to list their tokens on a trading platform. This is down 10% from the previous quarter, reflecting the fact that half of the ICOs in the first quarter of this year raised less than $100,000.
Projects that have failed to obtain their “hard cap” simply cannot afford a listing on a recognized trading platform. Simultaneously, those that have done their ICO perfectly remain reluctant when faced with the price that it costs. The price differential for being listed on a trading platform varies greatly from one platform to another, ranging from 100,000 to 3 million dollars for the most popular and highly liquid trading platforms. PS; it was claimed that Binance charge up to $7 million in certain cases.
In all honesty, registering a new token on a trading platform is not as simple as many traders think. Among the many tasks that must be performed before a token can be listed is due diligence to ensure that the project is not considered a scam. Cryptocurrency trading platforms meticulously control each cryptocurrency to ensure that no scams are listed, as this would greatly damage the trading platform’s reputation. Due to the time required to perform these various security checks and other administrative tasks, it takes an average of 21 days for an ICO token to start being traded. Some trading platforms also insist that the token’s smart contract is audited for any remaining bugs, which is understandable given their prevalence and potential severity.
Even after being listed on a trading platform, projects are not immune from delisting. Security checks are performed on an ongoing basis to exclude any tokens that may turn out to be a scam. In some cases, trading platforms write off a token without any warning.
Regulatory pressure can also have harmful consequences. If rumours circulate that a cryptocurrency could be re-qualified as a "security", trading platforms may take fright and simply remove the token for security. Given the haste with which newly registered tokens can be sucked up, abandoned and left behind, with months taken to launch the project, it is not surprising that some ICOs are reluctant to post their tokens before their beta version is ready and the token demand becomes "real".
Being listed on a trading platform solves one problem but creates others. Whether by choice or necessity, 70% of this year's ICO tokens still have to be traded. Most of them will never make it.
Questions:
1/ Do you think that projects should try to have their token included as soon as possible or is it better to wait until the project is ready?
2/ What do you think of the exorbitant fees applied by some major cryptocurrency trading platforms? Would you prefer the project you are supporting to pay these fees rather than keep the funds for other purposes?
3/ Is a first listing on a decentralized trading platform (DEX) a good thing? Or is it better to wait for centralized platforms to launch the listing?
Cryptotraders want a lot of trading platforms
Seeing your token listed on a lot of cryptocurrency trading platforms is a guarantee of liquidity, solvency, better available spreads, and of capturing new investors (who discover the project when listing the token on their trading platforms).
Without a trading platform a token is quickly forgotten, even if the background project is very substantial. Cryptotraders abandon the token because it becomes too difficult to trade, buy, or sell. An example, with a spread of 12% on this token which just entered a listing only on switcheo:
12% is not the largest spread seen. On some platforms, there are no counterparts wanting to buy or sell a token. The spread is then at a maximum.
Cryptotraders therefore applaud all listings on popular trading platforms. A token opening for listing on Binance, Okex, or Huobi usually sees its price soar.
Creating a token is easy. Getting it listed on trading platforms is more difficult.
With more than 250 cryptocurrency trading platforms, there should (in theory) be no problem supporting new tokens fromICOs. But, as many of these projects discover, it is almost impossible to get a listing on cryptocurrency trading platforms without paying exorbitant fees (up to several million dollars).
Is it worthwhile for a project to invest millions of dollars simply to be listed on trading platforms? No. Serious projects prefer to use their funds raised for more useful purposes. Namely that most cryptocurrency trading platforms organize a monthly community vote which lets a cryptocurrency be listed for free; so why pay for it?The complaining community simply has to support the project and vote for it during the competition.
What is the best cryptocurrency trading platform?
The "best" cryptocurrency trading platform is the one that allows ALL cryptocurrencies to be traded. A full panel of tradeable cryptocurrencies inevitably attracts all the cryptotraders and has the effect of increasing each cryptocurrency’s liquidity, therefore reducing the spread.
PS: Binance does not list ELASTOS (ELA), although this token is in the TOP 100. That is not reasonable.
ICOrating.com’s recent research shows how difficult it is for projects to get their tokens on a reputable trading platform - and these problems are not limited to registration fees. On the one hand, the project must perform its ICO. The unsold tokens are trashed. This delights the cryptotraders who participated in the ICO (fewer tokens in circulation = price increase). But the demand for tokens on the secondary markets will unfortunately be lower and the trading platforms will probably not be interested in integrating the token into the listing. ICOrating reports that only 22% of the ICOs completed in the first quarter of 2018 were able to list their tokens on a trading platform. This is down 10% from the previous quarter, reflecting the fact that half of the ICOs in the first quarter of this year raised less than $100,000.
Registration fees vary considerably from one trading platform to another
Projects that have failed to obtain their “hard cap” simply cannot afford a listing on a recognized trading platform. Simultaneously, those that have done their ICO perfectly remain reluctant when faced with the price that it costs. The price differential for being listed on a trading platform varies greatly from one platform to another, ranging from 100,000 to 3 million dollars for the most popular and highly liquid trading platforms. PS; it was claimed that Binance charge up to $7 million in certain cases.
In all honesty, registering a new token on a trading platform is not as simple as many traders think. Among the many tasks that must be performed before a token can be listed is due diligence to ensure that the project is not considered a scam. Cryptocurrency trading platforms meticulously control each cryptocurrency to ensure that no scams are listed, as this would greatly damage the trading platform’s reputation. Due to the time required to perform these various security checks and other administrative tasks, it takes an average of 21 days for an ICO token to start being traded. Some trading platforms also insist that the token’s smart contract is audited for any remaining bugs, which is understandable given their prevalence and potential severity.
Trading platforms cannot always be reliable
Even after being listed on a trading platform, projects are not immune from delisting. Security checks are performed on an ongoing basis to exclude any tokens that may turn out to be a scam. In some cases, trading platforms write off a token without any warning.
Regulatory pressure can also have harmful consequences. If rumours circulate that a cryptocurrency could be re-qualified as a "security", trading platforms may take fright and simply remove the token for security. Given the haste with which newly registered tokens can be sucked up, abandoned and left behind, with months taken to launch the project, it is not surprising that some ICOs are reluctant to post their tokens before their beta version is ready and the token demand becomes "real".
Being listed on a trading platform solves one problem but creates others. Whether by choice or necessity, 70% of this year's ICO tokens still have to be traded. Most of them will never make it.
Questions:
1/ Do you think that projects should try to have their token included as soon as possible or is it better to wait until the project is ready?
2/ What do you think of the exorbitant fees applied by some major cryptocurrency trading platforms? Would you prefer the project you are supporting to pay these fees rather than keep the funds for other purposes?
3/ Is a first listing on a decentralized trading platform (DEX) a good thing? Or is it better to wait for centralized platforms to launch the listing?
