In the previous article, we made an analysis of a whole set of requirements put by major exchanges for newly-created tokens. The requirements were regarded from the point of view of an exchange organizer who considers new coins entering the market.
But what about response to these requirements? Now we shall figure out the same setting but from the other side: some thoughts will be provided, on how a token issuer can withstand heavy requirements set by the exchange it is going to enter.
It is not a silver bullet to kill all monstrous problems related to hitting the market. But you can avoid certain difficulties if you take our precautions into account. Recommendations here will be placed according to the factors important for exchange organizers. They are the following:
Token price. Though it is hard to influence price of a token, particularly, when the token is a new one, some considerations can be taken. In most cases it turns out that, after an ICO end, many holders of free tokens, like airdrop and bounty participants, quickly sell their tokens in hopes of getting easy money. It leads to overall price drop in the market. To avoid such situation, one can save a part of funds to buy tokens back, thus regulating the price, or have a surplus within the token price allowing for minimization of price drop.
Another prerequisite for stable growth of token price can be successful trading on exchanges which are smaller than those to enter. These steps have an indirect impact on pricing.
Also, token price can be highly appreciated in case the product backing the token is already available in the market.
Hype. Watching trends pays its way. Clear thinking on a project and its promotion, participation in events remarkable for the global community - that’s what can create interest in the project token and demand for it. One should also remember of such effect as FOMO (fear of missing out) among investors who are willing to contribute in the newest, most promising projects. From this point of view, creation of “last train” effect will attract additional funding. However, breakthrough nature of the project itself is the most valid reason for great hyp.
Subscribers. Number of subscribers is crucial for getting a higher rating. From our point of view, the main issue is that the market realia call the shots: bounty and airdrop participants join the project communities and follow its channels with taking no part in the project development and provoking a price drop immediately after the ICO end. It is more important to form a community of people sharing the team vision of the project and crypto market development. Such community will positively influence formation of demand for the tokens.
Project specificity. When entering a such boiling and competitive market as the global ICO market, one shall be able to provide the community with a clear picture of the project mission and specificity, its main advantages and features, and, what is the most important, usefulness. These points play an important role for the investors and exchanges at the moment of the project assessment.
Market potential. All ICO projects are at the intersection of two spheres: first, crypto market and, second, the industry where the project will be implemented project in. For example, Elementh represents the e-commerce sector. With that in mind, its team shall have a strategic market vision and know whether the project will be highly-demanded in half a year, one year and more. In case the project has no future growing point, putting the project token on a major exchange will be very problematic.
Blockchain relevance. It shall be understood if the blockchain technology is really required to launch the service, app or another product. Starting an ICO is a trendy thing. But developments for which there is no needs to be based on blockchain, will arouse skepticism among exchanges and rating agencies. And it will prevent placement of the token.
Distribution scheme. A token distribution scheme shall be as much detailed and transparent as possible. It is common practice for sound projects to set longer token holding terms for partners and teams.
Team. An important point to make a decision on token listing is personality of the CEO and experience of the team. The more well-known persons and more experienced developers are involved, the higher will be the token price, and, as a consequence, entrance fee paid to exchanges.
PR and media activities. Mentioning in leading crypto media and reviews by top bloggers creates a forced boom, hype around the project. Exchanges are mostly interested in tokens of such projects.
Transparency. Now, there is a period in the crypto market development, when the number of projects has multiplied for the last two years. At that, schemes for development and token distribution are often muddled. Exchanges understand that currency of such projects is subject to fall first before others, since their trace in the market may simply disappear.
We hope that the provided information will help you to deal with listing issues and you will be able to overcome such tough period. So is your project viable enough to face all challenges?