Listing Token on Exchange: What Makes a Core of A Good Token and What is The Role of Market Makers?

Getting a digital token listed on a crypto exchange is a crucial step for projects. It opens up opportunities for crypto institutional trading and exposure within the crypto community. However, the process involves meeting specific criteria set by the exchange. In this article, we will discuss the important components of successful token listing.

How to Get Token Listed on Exchange?

Here are the requirements of a successful token exchange listing:

• Active team engagement. Every successful crypto project and token has an active community and experts behind it. This includes sharing updates on developments, and plans, addressing concerns arising in the community, introducing new features, etc.
• While many tokens skyrocketed in price due to hype, it’s not a reliable way for strategy building. A project and its token must carry real usefulness for users to be valued highly. It may be determined by real use cases for the token and cases of solving some pain points in the crypto space.
• Large user base. The larger the project’s community, the better for the token. Projects may take different initiatives to stimulate community growth (for example, airdrops).

Challenges of Crypto Listing

New listed cryptocurrency tokens face the following difficulties:

• Lack of liquidity. Many new projects can’t monetize their investments because of low liquidity in their tokens.
• Low interest in the token. Because of low liquidity, it is difficult to sell tokens, so investors are less likely to buy them.
• Low trading volume and high transaction fees.
• Low liquidity makes it easy to manipulate a token’s price.

These factors make it difficult to get tokens listed on major crypto exchanges. What helps solve these issues is a market maker program, where specialized companies or individual traders pour liquidity into a token and make it much more attractive for investors.

What market makers do:

1. High liquidity makes it easy for traders and investors to buy and sell tokens.
2. The token attracts traders and investors due to lower transaction fees.
3. High liquidity makes the token less vulnerable to manipulations.
4. Possibility for crypto listing on large crypto platforms, since the token is traded 24/7.
5. The more discussions around the project, the more traders and investors join it.

Final Thoughts

Although numerous cryptocurrency tokens have experienced increased trading volumes and market prices due to hype, the enduring success of a token hinges on its practical utility. A successful token launch requires an active team, an engaged community, and often market makers’ services. Altogether, it creates discussions around the project and raises its chances of being listed on major platforms.