Internet Security Blog - Hackology

Guide to Listing Tokens on Centralized Exchanges

There are hundreds of new crypto projects arising as the market is awakening after the long downtrend. The ultimate goal of every young project is to list token on exchange and gain exposure to a wide audience of traders and investors. The most efficient way is to list tokens on centralized exchanges (CEXs), for they provide a reliable and compliant trading environment. This article explains why listing on CEXs is so beneficial for new projects and how to list tokens correctly.

Benefits of CEX listing

Here are the benefits projects get with listing on CEX:

  • High liquidity. After listing, tokens become accessible to a broad audience of traders who start trading them and boost their liquidity. 
  • Greater base of crypto for institutional investors. Listing on a CEX increases tokens' visibility and credibility in the market. New market participants now know about the token and feel confident about its credibility.
  • Possible price growth. With the token becoming visible and tradeable, its trading volume will likely grow. It can potentially increase the price as well.
  • Compliance. Many CEXs fully comply with regulations. Listing tokens means a thorough check of the projects behind them. A listen token means the project was checked and approved by the CEX.
  • CEXs offer advanced trading tools such as margin and futures, which may also boost liquidity. 

Crucial Steps for Listing a Token on CEX

Here are the steps to list your token:

  • Choose an exchange. Evaluate trading volumes of different platforms. Choose those with higher volumes, which means greater liquidity.
  • Prepare documents. See the exchange’s requirements and prepare all the needed documents about your token. That may include token audits, compliance with regulations (AML and KYC), whitepaper, etc.
  • Submit the request for listing your token. Provide all the necessary information to highlight the unique features of your token and value. Be active and engage with the exchange community. Arrange AMA (ask me anything) sessions and communicate your project through social media.
  • Discuss fees and terms. There may be a fixed fee for listing, or you may negotiate this with the exchange directly. 
  • Once you have successfully negotiated the fees and terms, the listing process starts. It includes the token’s smart contract integration into the exchange’s trading platform. 

Once all the technical issues are solved, the exchange will announce your token listing and the pairs it will be traded with. 

Conclusion

Token listings on CEX allow for greater liquidity, exposure, and accessibility of tokens to a wider range of potential investors. Being listed on a CEX can increase a token’s credibility and legitimacy, as well as provide a platform for price discovery.

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