Listing of digital assets: how cryptocurrency gets onto exchanges

Key Points

• Listing is the process of verifying and adding a crypto asset to the platform’s trading catalog
• Delisting is the reverse process of removing an asset from the exchange for various reasons
• The price of a coin is significantly influenced by its inclusion in the list of tradable assets

Why Cryptocurrencies Need Listing

Before a digital asset becomes available for mass trading, it undergoes thorough verification and is included in the platform’s asset registry. This mechanism is called listing. It is an important process of selection and verification, granting the crypto project access to a broad audience of traders and investors. Listing critically affects the asset’s liquidity – its ability to quickly exchange for other assets without substantial price drops. When a coin appears on a major exchange, its recognition sharply increases, attracting new market participants and facilitating its inclusion in investment portfolios.

Stages of Getting a Token on an Exchange

In most cases, the initiative comes from the project itself or the company that developed the coin. However, each trading platform sets its own requirements and procedures. The process includes the following key steps:

Submitting project information. The developer fills out a detailed questionnaire with basic information: founding date, mission, development directions, technical features, and strategy.

Comprehensive analysis. Platform specialists evaluate the data, analyze the potential profitability and prospects of the asset in the market.

Decision making. Based on the analysis, the exchange’s commission decides whether to add the new cryptocurrency to the catalog.

Signing an agreement. After agreeing on the terms, the parties sign a listing agreement and determine the trading start date.

Technical integration and launch. The final stage involves integrating the coin into the platform’s system and starting its trading.

What They Pay Attention To During Verification

Platforms primarily assess the functionality and practical usefulness of the asset. Tokens with governance rights in the protocol or service management have a higher chance of successful inclusion. The second critically important factor is security. Most exchanges require compliance with certain protection and code audit standards. An asset that does not meet these requirements will be rejected at the initial verification stage.

Exchanges also consider the demand for the token among traders – platforms are interested in assets with high trading potential. The long-term business strategy of the team, their experience, and reputation in the industry are evaluated. Compliance with regulatory requirements is also important – legal teams check whether the asset raises questions with regulatory authorities in various jurisdictions.

How Listing Affects the Coin’s Value

Announcement of an upcoming listing often triggers increased interest among investors and speculators. This can temporarily boost demand for the token and lead to a rise in its price. Once the coin is included in the asset catalog, it becomes easier to buy and sell due to increased liquidity. Growing trading volume strengthens demand and helps stabilize the price. The long-term success of the asset depends on the team’s marketing efforts and ability to earn community trust.

Ways to Obtain Tokens Before Official Listing

There are several proven strategies for acquiring an asset at early stages when it is not yet available to the general public:

Participation in testing and reward programs. Projects often launch functionality tests, distributing tokens for active participation. Retro drops reward early supporters of the project, although conditions for receiving may vary. Ambassador programs offer opportunities to earn tokens by promoting the project within the community. Tokens from these programs are distributed by the time of official listing, giving participants access to assets with growth potential.

Purchasing in the pre-market. Specialized platforms allow investors to buy tokens before they appear on spot markets. This provides an opportunity to acquire assets at a price potentially lower than the listing price, though it also involves higher risks.

Staking and other mechanisms. Some platforms offer mechanisms to earn new tokens through locking existing assets, giving investors early access to projects.

Investing in tokens before listing is one of the riskiest ways to generate income. Thorough research of the project and assessment of its prospects are essential before investing.

Tags and Classification of New Assets

In exchange catalogs, assets can have various statuses. Some coins are classified as being in early development stages with an uncertain user base. Such assets typically exhibit high volatility and investment risks compared to established tokens. Other assets receive a status indicating higher recognition and the existence of a working product with a certain level of community acceptance. However, they are also not free from risks – potential legal issues, technological challenges, and market volatility remain factors to consider.

Platforms use such classification to help users make informed decisions, especially when investing in recently created assets. However, each investor is advised to conduct independent research and exercise due diligence.

Delisting: When Coins Are Removed from Exchanges

Inclusion in the asset catalog does not guarantee permanent presence on the platform. There is a reverse process called delisting, where an asset is removed from the list of tradable assets. Both the exchange itself and the project developer can initiate the removal of a coin in case of project suspension or closure.

Main reasons for delisting include:

• Failure to meet platform requirements or changes in exchange policies
• Low trading activity and insufficient demand
• Detection of security issues or vulnerabilities in the code
• Multiple user complaints
• Lack of innovation or low project performance

Delisting can be caused by regulatory, market, technical, project, or strategic factors. Understanding these reasons helps market participants make informed decisions and highlights the importance of thorough analysis when working in the cryptocurrency market.

Listing Application Procedure

Although each platform has its own rules, the general requirements for approval are roughly the same:

Popularity and demand. Exchanges are interested in assets with the potential to generate trading volumes. There is no point in adding coins without demand.

Strategic development plan. A justified description of the project’s goals and the team’s long-term development strategy is required.

Technical implementation. Critical factors include having an experienced development team and demonstrating technical security and stability.

Regulatory compliance. It is necessary to ensure that the asset does not raise issues with regulatory authorities and complies with local legislation.

Recommended steps when preparing for listing:

1. Ensure the availability of a minimally viable product with functionality before submitting an application; otherwise, it will be rejected at the initial review.

2. Regularly inform the community about development stages and project progress both before and after listing.

3. Demonstrate integration with the ecosystem and main platform assets.

4. Actively engage with the exchange community and maintain communication.

5. Expect feedback and further cooperation proposals.

The Significance of Listing in the Asset Lifecycle

Listing is a key milestone in the development of any digital asset, determining its accessibility, liquidity, and perception by the investment community. Besides increasing the token’s visibility to a broad audience of traders, this process significantly enhances trust in the project and can substantially increase its market capitalization. However, the listing process involves challenges and risks – high fees, strict regulatory requirements, and competition for a place in the catalog. The decision to launch should be made after a detailed analysis of all prospects and potential difficulties, weighing both advantages and possible obstacles to the project’s development.