Even if you are a developer of a budding and relatively popular project, getting the project’s native token listed on a centralized cryptocurrency exchange (CEX) can be quite difficult. This is why many projects lately decide to list their tokens on decentralized exchanges (DEX). While it may work well for a small number of niche projects, listing on a DEX only comes with several trade-offs that could hamper long-term project success. All things considered, listing your token on a CEX still offers the best prospect of project success, as CEXs generally have a larger user base and more liquidity.
In the following article, you can read the four most common mistakes made by projects trying to get their first listing. Errors as well as tips and tricks were written with expert help from Listing.Help, the largest project listing agency on crypto exchanges. Since 2017, when Listing.Help was founded, the agency has helped list over 800 projects and conducted over 100 IEOs.
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The company works with over 100 exchanges, including major ones such as Binance, KuCoin, OKEx, and Huobi. With 5 years of experience in this business, the agency can organize everything necessary for a successful registration adapted to the needs and budget of your project. Their individual approach is also reflected in the company’s TrustPilot score, with over 90% of customers giving Listing.Help 5 stars.
Continuing token listing without a strong community
The project should only pursue a token listing after building a strong community, as the most serious CEXs will immediately reject the project with a weak community. Also, reapplying after a denial is more difficult and less likely to be successful. Moreover, even if the project manages to get listed on a smaller DEX or CEX without an audience, the trading volumes will be very low, which negatively affects the reputation of the project. Therefore, it is of crucial importance to create a community and keep it updated on the progress of the project through posts on social media platforms.
Choose to list on a DEX rather than a CEX
We have already highlighted the downsides of DEXs in terms of liquidity and user base, but listing on a decentralized platform comes with even more compromises and hidden costs. While at first the cost of listing on a DEX may seem much lower, this might not be true in the long run as on DEXs the project will have to pay commissions for each transaction. On the CEX on the other hand, projects can trade for a commission-free account, allowing them to do market making for free. Additionally, centralized exchanges usually put a lot of effort into getting listed projects to market, while DEXs usually don’t even make an announcement that a certain token has started trading.
Spending money to get listed on an illiquid exchange
A big mistake is choosing an illiquid exchange. Although CEXs are generally more liquid than DEXs, not all centralized platforms have been made equal. Many analytical platforms and even some exchanges will display fraudulent trading volumes to make them appear more popular and liquid. Some low-level centralized exchanges will even write to the projects themselves and offer a listing. This is almost never a good sign and chances are that if you accept the offer, you will simply spend your project money on listing on a bad and illiquid exchange. The Listing.Help team can help you weed out those bad CEXs.
Disregard the location of your users
Finally, even if you choose a reputable and liquid exchange, the trading volumes and interest in your project could disappoint you if you do not take into account the geolocation of your community and do not verify that it corresponds to the origin. of the exchange’s user base. Simply put, listing your project on a major Japanese exchange is a waste of money and probably won’t yield the desired results if most of your project’s users (and potential investors) are from Europe. Of course, listing on a top-tier exchange with global coverage would also solve this problem, but keep in mind that such high-profile listings could be way outside your project’s budget.
David is a crypto enthusiast and personal finance expert. He has created numerous publications for different platforms. He loves exploring new things, and that’s how he discovered blockchain in the first place.