Want To Get Your Coin Listed At An Exchange? That Will Be $1m Please.
What most Crypto Currencies investors are not aware of is the huge power balance between the currencies and the exchanges.
The liquidity is found at the exchanges and being listed at them can make or break a coin. 2017 was the year of the ICO. Instead of people having to go to investors and venture capitalists to raise finance they can now do an ICO. However to get the big investors they need to be listed at the big exchanges.
So how do you get listed at an exchange? Exchanges make money when coins are traded so the coins which are well established and have natural demand get listed automatically as the trade from those will be constant and pure profit to the exchange. SO how does a new coin get listed? It seems as though it is cash upfront payment.
Some ICOs are looking at raising $100m plus. To get this money they will need to be listed on the big exchanges so that they can tap into the user base that already exists there. The exchanges realise this and know that they can charge to be listed as if the company isn’t listed that $100m figure they want to raise won’t be happening.
If you look at the top 100 exchanges most of them charge anywhere between $50k and $1m for listing. Sometime they will take on a coin for free if there is already a considerable demand for it. There are also some exchanges like Bittrex which doesn’t charge. They say on their ‘submit a coin for listing‘ page “We believe in promoting the blockchain industry, and we have spent, and will continue to invest, significant resources to review tokens for listing on our Exchange.”
As regulation of crypto currency becomes more visable then so will the fee structure.