Know about Cryptocurrency Exchange Listing Fees
If you have followed our articles here, you’ll know that we are fan of collecting latest news about Cryptocurrency Exchange Software, particularly when they bring something distinctive for users. It is great time to Know about Cryptocurrency Exchange Listing Fees.
Any asset that does serve as a medium of exchange needs to have good liquidity in order to do so well. Included among those great assets are, of course, cryptocurrencies.
Crypto Exchanges & Coin Liquidity
Coin liquidity of crypto assets is wholly regarded to be one of the most key factors in achieving mainstream adoption of blockchain technology. It is true and also on a project-by-project basis. You can simply put, a cryptocurrency project with zero liquidity is going to fail. It doesn’t matter if the project is innovative, if it could not be bought and sold at relatively stable prices, it would struggle to achieve any noteworthy adoption.
So, the easiest way for a cryptocurrency to gain liquidity is to be listed on crypto exchanges. The more exchanges a coin is listed on, the more easily it could be immensely traded by large amounts of people.
If you create a cryptocurrency and like to give it a chance to succeed, you must get it listed on as many exchanges as possible.
As the gatekeepers to liquidity, cryptocurrency exchanges are in a position of power. Their decision to list or not list a coin could largely influence its success. So surprisingly they take advantage of their power by charging exorbitant listing fees.
Is it exorbitant?
It is assumed not at all uncommon for crypto exchanges to charge projects 6 figure USD amounts to get listed on their platform. You have some development work that goes into listing a new cryptocurrency on an exchange, but the cost of that work is well below the fees that quality exchanges often charge. Listing coins is simple way for exchanges to generate revenue that many are keen to take undue advantage of.
A Decentralized Exchange with No Listing Fees for ERC20 Tokens
The development work needed in listing ERC20 tokens on a crypto exchange – be it a centralized exchange or a DEX – is minimal. The popular exchanges that charge high fees for this work are doing so at the expense of the cryptocurrency ecosystem as a whole. Primarily they raise the barrier of entry for new projects trying to gain liquidity, and in so doing they make it hard for any project that had a reasonably small ICO to get listed.
It is enumerated that listing cryptocurrencies which have independent blockchains does need significantly more development work by the exchange’s team than for platform-based tokens. Generally the cost of configuring these coins with the DEX does not need to be arbitrarily high.
Coin Liquidity & DEXs
Moreover getting listed on crypto exchanges is only part of the liquidity problem, and it’s wholly for the exchanges to have the necessary order matching capabilities to make a coin or token simply trade able.
Finally it’s reasonable to expect that projects of all sizes of recent ICOs and ERC20 tokens in specific must be keen to be listed on a DEX that would not charge them unreasonable fees for doing so.