The well-known publication Business Insider asked the question — how much is the listing of token? Of course, adding coins in an exchange list will cost a pretty penny, but the information about the tariffs, which managed to get BI, threw journalists into shock.
According to half a dozen market participants, from investors to executives with their own coins, some exchanges charge between 50 000 to 1 million USD, depending on the size of the marketplace.However, both in personal conversation and in the report, respondents refused to name the exchanges that charge exorbitant fees, fearing to put them and the damage. Exchangers have tremendous power on the cryptocurrency market, and access to larger venues affect the outcome of many projects.
“In fact, a large number of people want to make a listing of their tokens,” says Michael Jackson, a partner at venture capital firm Mangrove Partners. “The exchange is a place where liquidity, and with it the money, so now they control the situation.”
In 2017 began a massive ICO. The company released their own digital currency and sold to investors, allowing start-UPS to Finance their projects.
The ICO companies offer a quicker and cheaper alternative to venture capital investments. For investors, these tokens provide access to a hot sector, as well as the ability to quickly and easily sell their shares which is not possible with traditional investments at an early stage.
But in order to obtain liquidity, companies that produce tokens should record them in a list of at least one of the cryptocurrency exchanges. Like stock markets, online exchanges based around the world, offer people the opportunity to trade tokens.
Oliver Bussmann, the former CIO of UBS now owns a private consulting company in the field of Finance explained:
“Good exchange means that your chances to take their place in the market is quite high, because you have access to investors and liquidity. If you will not work on certain exchanges, you will be taken to exchanges of the second rank, and so your access will be limited to investors”.
For example, after we heard rumors about adding a Ripple on Coinbase, the price of the cryptocurrency has jumped by 5 %, proving the impact exchanges have on the success of the project.
Bussmann, he consulted a number of superior cryptocurrency projects such as Ripple and IOTA, is President of the Association of Crypto Valley in Switzerland, and promotes the Zug region as a centre for crypto-currency companies.
According to Oliver, the fee for listing is $ 1 million too big.
“Usually, for the proper organization of ICO from a legal point of view, accounting and other costs range from 0.5 to 1 million dollars. And then another million on the listing? This unfair relationship”
But many ICO projects I want to host on multiple exchanges, and that means more expenses.
As already mentioned, the sources refused to name the trading floor and their rates, and the exchange contacted the publication to BI, including GDAX, Bitfinex and Kraken, either do not answer or reported that money from cryptocurrency startups are not taken. Earlier exchange Binance reported that rejects 97% of applications for listing, as most tokens do not correspond to the internal rules of the platform.
I wonder how much of Pavel Durov will cost the inclusion of a token in a listing of the leading trading platforms, given that in ICO, the company can reach 1.5-2 billion dollars? Most likely it won’t cost him a dollar, because the exchange earn on trade, and a project of this scale as TON — must-have list of every self-respecting crypto exchange platform.