It is widely believed that listing tokens on a major crypto-exchange will ensure the long-term success of altcoin, but in practice it is not. Many ICO token buyers and project managers believe that listing is crucial to determining the fate of their token. However, a look at the demand for less popular tokens on major exchanges shows that this concept is false.
"When will tokens appear on Binance?"- a question that often appears in groups of crypto projects in telegram. For many teams representing ICO projects, providing an exchange listing is the Holy Grail. The potential liquidity and reliability of the project, necessary for the listing procedure, contribute to the promotion of projects to the next stage. Guaranteed price growth that occurs when listing on a major exchange such as Binance is also welcomed by token investors who enjoy the opportunity to unload their assets and make a profit by transferring tokens to traders.
But when the strong price spikes that accompanied the listing on major crypto-exchanges earlier disappeared, and the excited chatter in the telegrams subsided to a murmur, the situation changed.
Creating a project whose token has long-term value and is able to generate demand is a complex issue. Many project managers simply don't have what it takes to stay the course, and their hard work, community building, Protocol improvement, and coaching can have no effect.
Exchanges provide liquidity — not demand
There are many currencies that are already exchanged on such large crypto-exchanges as Okex, Huobi or Binance. With so many assets readily available, including trading pairs with ETH and BTC, it is difficult to bring a new token of interest. But one thing that these platforms can't create is demand. There must be a reason why traders want to acquire some particular asset and that is what project creators often forget about.
Over the last 24 hours at Binance, trading turnover has amounted to $ 1.3 billion, including $ 42 million in EOS token trading and $ 20 million in Stellar. However, looking through them a list of traded tokens and you will find hundreds of assets that have contributed to the total trading volume from 0% to 0.01%.
In the last 24 hours, it has been sold for only $71 '000 of QLC Chain tokens (QLC/BTC) and only $12'000 of Bread tokens (BRD/ETH). With the less popular Binance trading pairs, there are dozens of assets with even less volume: in the case of VIA/BN and RLC/BNB — just $ 742 and $ 549 respectively.
Many altcoins on the major exchanges are not in demand
On Okex, coins with low trading volume look even worse than on Binance. Many of the 500+ trading pairs listed on the Hong Kong stock exchange have a daily turnover of zero. Over the past 24 hours, only $1 was traded with Unikoin Gold (UKG/ETH), and the total amount of transactions was $4 for the pairs CAG/BTC and CAG/USDT. In fact, 50% of all trading pairs on Okex registered less than $35'000 in trading turnover in the last 24 hours.
Huobi, the third largest crypto-exchange in the world after Binance and Okex, has margin trading capability, but the least popular ADX/ETH pair still can't overcome the $1000 trading turnover threshold. On Bitfinex, the fourth largest exchange in the world, ultra-low volume particularly common: in the last 24 hours in торговsq turnover Aragon (ANT/ANT and USD/BTC) was only $79, tokens Everipedia — $166, and PAI/USD only $66.
Many of the prestigious exchanges mentioned in the article charge listing fees that amount to hundreds of thousands of dollars. Tokenized projects considering entering the exchanges should remember that for each successful listing, there are a dozen tokens that do not receive attention. Thus, we can conclude that listing on a large crypto-exchange is not a guarantee of success.
Link to the source of information (Russian) -
https://altstake.io/news/listing-na-krupnyh-birghah-ne-garantiruet-uspeh-tokena
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Topic: Listing on major exchanges does not guarantee the success of the token (Read 549 times)