Bringing a token to the open market is a difficult task even for promising ideas and companies if they think through the strategy on their own. P2PB2B experts, who launched a new BSc listing, talked about common listing mistakes that are best avoided.
Listing a token on an exchange is an important stage for any project. Going public helps to increase the reputation in the eyes of your community and attract attention to the company to a new audience and investors. The process of bringing a token to the open market is complex and includes many nuances that must be taken into account. The wrong listing strategy can be costly and slow down the development of even the most promising startup. Read the article about common mistakes when listing projects.
How to start a project to list your token on the exchange
To conduct a listing, you need to submit an application for consideration by the management of the exchange. Usually, this can be done through a special form on the site. Before making a decision, her administration conducts an in-depth analysis of the project. Each exchange has its own audit features, but in general, there are general parameters for which applications are considered:
- study the technical documentation of the project, the features of the blockchain, and the security of the token;
- check potential liquidity, market interest in the token, and application possibilities;
- evaluate the idea as a whole, the reputation of the creators of the project, and the density of the community;
- check the project for compliance with legal requirements.
When the application is approved, the listing procedure begins – this will require certain costs. Each exchange has its own conditions: some have set listing fees, and others make a decision after consideration of the application. Sometimes the listing procedure is carried out free of charge – usually young exchanges practice this, or vice versa, large players who stimulate interesting projects and ideas. For example, Binance regularly holds a competition where promising startups can get a free listing after users vote.
Four mistakes when working with BSC crypto listing
The listing process has many details and each project has a different path. Describing all the shortcomings that may arise is not a task for one article. But there are a few basic mistakes newbies make when trying to enter the market for the first time.
Conduct a token listing before the community is organized around the project.
Before allocating a budget for a listing, the team needs to make sure it’s interesting. If there is no hype around the project and only a few are interested in the idea that the creators are working on, most exchanges are likely to reject the application. Re-applying will be much more difficult. Even if it is possible to place the token on the exchanges, the trading volume will be low, which will reflect badly on the company’s reputation.
Choose to list on DEX instead of CEX.
Even if a startup is popular enough, listing on a centralized exchange (CEX) can be challenging. At this point, it is tempting to list on a decentralized exchange (DEX). In some cases where the project is a niche, listing on the DEX may work, but will be less effective in the long run. There are several reasons for this:
- Poor project progress. Centralized exchanges put a lot of effort into marketing coins: they announce listings on social networks and on the website, conduct trading contests, staking and farming programs, and so on. The DEX usually does not even announce the start of trading in a new token.
- Hidden Listing Costs. At first glance, it may seem that listing on the DEX will be free, but it is not. First, you will need to create a liquidity pool for the token. This burden will fall on the company itself, as the decentralized exchange community is afraid to invest in the pool of the new project. Secondly, the commission in different blockchains can differ by dozens of times, so market making will require significant investments.
- Losses of the project and its market makers from bot trading. Decentralized exchanges are flooded with a large number of bots, such as sniper bots and sandwichbot. The first one flushes liquidity from the pool at the moment of listing, and the second one tries to earn on every market maker’s deal. Accordingly, the project will have to look for third-party software solutions to keep bots from working or put up with costs.
Spending money on listing on illiquid exchanges.
There are more than 400 different exchanges in the world. Most are not yet regulated by law, so you can not be sure of the reliability of the data provided. Many exchanges look nice on paper but don’t actually have the level of activity they’re trying to show to the outside world.
Listing costs that cover a small number of users and have little to no real liquidity could be a setback for a project. You should carefully check the exchange before starting work. You should not contact those who persistently invite projects to list the token. Typically, liquid exchanges don’t spend resources on cold calls and listing emails—this will almost always be a wake-up call.
Choose an exchange outside the geolocation of your community.
It is important to consider how popular and accessible the exchange is among your audience, otherwise, the listing will be ineffective. For example, it would be wrong to list on the Japanese stock exchange if the target audience of your project is in Europe. The exception is global resources such as Binance, FTX, Kraken, and others, but placing a token on exchanges of this magnitude requires a lot of money and may go beyond the budget at the initial stage of project development.
In order not to lose the budget on an inefficient listing, you need a strategy
Why it is better to entrust the listing of the token on P2PB2B :
- We will think over an effective listing strategy, taking into account the needs and budget of the project.
- We will select exchanges that will be useful for the development of the project.
- We will list at prices below the official ones.
- We will provide bonuses: free accounts for market makers, additional promotion,s and others.
- We will launch an IEO and list it on the exchange out of turn.
- We will advise on all issues for free.