Main conclusions
Listing is the process of adding a digital asset to a cryptocurrency exchange or trading platform.
A security token offering (STO) is a fundraising method that involves issuing security tokens.
Delisting is the process by which certain coins or tokens are removed from the trading platform.
What is a listing?
Before a cryptocurrency becomes available for purchase and sale, it must go through a complex verification process, after which it will be included in the list of resources available for trading. Such selection is called listing.
Listing is the process of checking, selecting and adding cryptocurrencies to the list of assets available for trading.
It is necessary for the project, as it opens access to a wide audience of traders and investors. This contributes to a significant increase in the liquidity and recognition of the cryptocurrency, allowing those interested to purchase the asset and include it in their investment portfolios.
How tokens are listed
In most cases, the initiator of the listing is the company/project that developed the coin. The rules for adding crypto depend on the trading platform, its scale and popularity among users. Each exchange itself establishes the listing procedure and determines the requirements that the coin must meet.
This process involves several key steps.
Filling out the questionnaire. Here you need to specify the basic information about the project - date of creation, purpose, description of goals, tasks, directions of development, etc.
Analysis. The trading platform analyzes the received data and calculates the profitability of the new asset.
Conclusion. A special commission from the exchange, based on the analysis, makes a conclusion - to add a new cryptocurrency to the list or not.
Agreement. After agreeing on the terms, the parties sign the listing agreement and determine the launch date.
Integration and start of trading. The process ends with the technical integration of the coin on the platform and the start of trading.
First of all, attention is paid to the usefulness and functionality of the new cryptocurrency. Therefore, for example, an asset that gives the right to participate in the management of services has more chances to get into the list of internal tokens of large projects.
The next important point is safety. Most markets have their own standards, and if a new cryptocurrency doesn't meet them, it has virtually no chance of going any further.
How listing affects the price of cryptocurrency
A listing is often seen as an important event that can affect the price of a token. The announcement of the planned release of the asset can cause a wave of optimism among investors and traders, temporarily increasing the demand and, as a result, the price of the crypto.
When a token is listed on an exchange, it makes it available to more users. Users start active trading, which leads to an increase in the asset's liquidity. As a result, the demand for the token increases, which supports its price and contributes to the trading volume.
Therefore, for a cryptocurrency to succeed, it is necessary to have strategies to promote and build trust among the community.
How to get tokens for listing
Let's take a look at the best strategies for getting new cryptocurrencies before they become available to everyone.
Participation in testnets, retrodrops, ambassador programs. This is an opportunity to get tokens for their listing. Projects that launch testnets allow users to test functionality in real-world usage conditions, and tokens are often distributed for active participation. Retrodrops reward those who supported the project in the early stages, although the conditions for obtaining them may not always be predictable. Ambassador programs provide an opportunity to earn tokens through popularization of the project. Such rewards are provided prior to listing, allowing for assets with potentially high value.
Participation in Binance Launchpool and Megadrop events. This is another way to get tokens before their official launch on the exchange. Binance Launchpool allows users to earn new tokens by staking their assets, while Megadrop opens up access to early-stage projects. Binance helps innovative crypto projects attract investment by supporting them during token launches. Users can receive rewards before projects go to market.
Buying tokens on the premarket. This is an opportunity to purchase tokens before their listing through special platforms. The premarket allows users to buy tokens before they become available to the general public on the spot market. This gives investors a chance to gain access to assets at a better price, as well as sell rewards from the Launchpool before the official listing.
Investing in pre-listing tokens is one of the riskiest ways to make money, so it's worth doing thorough research when evaluating the asset's prospects.
What is the seed tag and token monitoring during listing
The seed tag is used to classify cryptocurrencies that are usually in the early stages of development and may not have a working product or an established user base. Cryptocurrencies with the seed tag may exhibit higher volatility and investment risks compared to other available tokens.
In addition to the seed tag, you can find cryptocurrencies classified under the "Monitoring" tag. These cryptocurrency projects are often better known than projects with the seed tag. Typically, projects with the "Monitoring" tag have a working product and some level of user adoption. However, they also involve risks, including potential legal and regulatory issues, technological challenges, market volatility, and more.
Binance uses these tags to help users make more informed decisions when investing in cryptocurrencies, especially newly created ones. However, each user is advised to do their own research and exercise due diligence when it comes to investing in any cryptocurrency.
Delisting and its reasons
If a coin is included in the list of trading assets on an exchange, this does not mean that it will remain there forever. There is a reverse procedure called delisting - removing an asset from the list. The exchange itself, as well as the crypto developer, can remove the coin if they decide to suspend or close the project.
Let's consider the main factors that lead to the removal of tokens from the list.
Non-compliance with platform requirements.
Low trading activity.
Security breach.
A large number of user complaints.
Poor performance or lack of innovation.
Cryptocurrency token delisting includes regulatory, market, security, design and strategic factors. Understanding these reasons helps investors and traders make informed decisions. In addition, he emphasizes the importance of thorough research and due diligence when dealing in the cryptocurrency market.
How Binance Checks Tokens, Coins and Projects Before Listing. How to apply
Each platform has its own set of rules for approving a listing application, but they are generally similar.
Popularity of the token. Exchanges earn through trading volume. So it makes no sense to add coins that have no demand.
Long-term business plan. For what purposes the team created the crypto project, and how it plans to develop it.
Technical side. It has a strong development team and technical security.
Compliance with laws. Lawyers make sure that the asset does not raise questions from the control authorities. Especially recently, when US regulators began to call almost every coin a security.
Check out the step-by-step instructions for listing your own token on Binance.
Complete the online form for a direct listing on Binance.com and the Launchpad/Launchpool application. Only apply for listing if you have at least a minimum viable product, otherwise it will not pass our initial review.
Regularly inform the community and us about the development of your project. This is required even after listing on Binance.
Include BNB in your ecosystem and/or increase BNB in the fundraising stage.
Support Binance in your community.
Expect an answer about further cooperation by e-mail.
The listing of a cryptocurrency is an important stage in the life cycle of any digital asset, which determines its availability, liquidity and perception in the investment community. In addition to providing greater visibility of the token to a wide audience of traders, it can significantly increase the credibility of the project and increase its market value. However, despite the many advantages, the listing process is fraught with challenges and risks, including high fees and strict regulatory requirements. As such, the release decision should be made after careful analysis and preparation, considering both the opportunities and potential challenges.
