Even if you are a developer of an aspiring and relatively popular project, getting the project’s native token listed on a centralized cryptocurrency exchange (CEX) can prove to be quite challenging. This is why many projects are lately deciding to list their tokens on decentralized exchanges (DEXs). While this might work out well for a small number of niche projects, listing on a DEX only comes with several trade-offs that could hinder the project’s success in the long run. All things considered, getting your token listed on a CEX still provides the best prospect for the project’s success, as CEXs generally have larger userbase and more liquidity.
In the following article, you can read about four most common mistakes made by projects that are trying to secure their first listing. The mistakes along with the tips and tricks were written with the help of experts from Listing.Help, the biggest agency for listing projects on crypto exchanges. Since 2017, when Listing.Help was founded, the agency has helped with a listing of more than 800 projects as well as conducted more than 100 IEOs.
The company works with more than 100 exchanges, including major ones such as Binance, KuCoin, OKEx and Huobi. With 5 years of experience in this business, the agency can organize everything needed for a successful listing tailored to your project’s needs and budget. Their individual approach is also reflected in the company’s TrustPilot score, as more than 90% of customers gave Listing.Help 5 stars.
Pursuing token listing without a strong community
The project should only pursue a token listing after it has built a strong community as most serious CEXs will reject project with a weak community immediately. In addition, reapplying for a listing after a rejection is more difficult and less likely to succeed. Furthermore, even if the project is successful at listing on a DEX or a smaller CEX, without an audience, trading volumes will be very low, which negatively affects a reputation of the project. Therefore, building a community and keeping it up to date with the project’s development through posts on social media platforms is of crucial importance.
Choosing to list on a DEX over a CEX
We have already highlighted about disadvantages of DEXs in terms of liquidity and user base but, listing on a decentralized platform comes with even more trade-offs and hidden costs. While at the beginning the cost of listing on a DEX might seem much smaller, this might not hold true in the long run as on DEXs, project will need to pay commissions for every trade. On CEXs on the other hand, projects can negotiate for an account without commission, which allows them to conduct market making for free. Furthermore, centralized exchanges will usually put a lot of effort in marketing the listed projects while DEXs usually won’t even make an announcement that a certain token has begun trading.
Spending money for listing on an illiquid exchange
An important mistake is choosing an illiquid exchange. While CEXs are usually more liquid than DEXs, not all centralized platforms have been made equal. Many analytical platforms and even some exchanges will post fraudulent trading volumes to make them appear more popular and more liquid. Some low tier centralized exchanges will even write to the projects themselves and offer a listing. This is almost never a good sign and there is a high chance that if you take the offer, you will just spend your project’s money for listing on a bad and illiquid exchange. Listing.Help team can help you weed out these bad CEXs.
Not considering where your users are located
Finally, even if you do pick a renowned and liquid exchange, trading volumes and interest into your project might disappoint you if you did not take into the account your community’s geolocation and check that it corresponds with the exchange’s userbase origin. In layman’s terms, listing your project on a major Japanese exchange is a waste of money and will likely not return desired results if most users (and potential investors) into your project come from Europe. Of course, listing on a top-tier exchange with global coverage would also solve this issue, but do keep in mind that such high-profile listings could be way outside your project’s budget.
