Get Listed on Central Exchange:
A Step-by-Step Guide
There is one thing in common for every team behind a new token – get listed on an exchange. While not so long-ago exchanges were competing to attract the most promising tokens. But the narrative changes very quickly in the crypto industry and now thousands of tokens are chasing a handful of exchanges. Therefore, the listing process became much more complicated, and getting your token listed on a central exchange or decentralized exchange requires a well-thought-out strategy. A comprehensive understanding of the key differences between CEX and DEX is necessary in order to make an informed decision on which platform is the right choice for your project.
What is the difference between CEX and DEX?
CEX (Centralized Exchanges) and DEX (Decentralized Exchanges) are both platforms for trading cryptocurrencies, digital assets, and tokens. However, they have some key differences:
- Centralization: CEXs are operated by a single entity, typically a company, while DEXs are decentralized and operated by a network of users.
- Privacy: CEXs often require users to provide personal information and comply with KYC (Know Your Customer) and AML (Anti-Money Laundering) regulations. DEXs, on the other hand, allow for anonymous trading and don’t require users to provide personal information.
- Trading Features: CEXs typically offer advanced trading features such as stop-loss orders, margin trading, and leverage trading, DEXs may not have these features.
- Trading Volume: CEXs often have higher trading volumes than DEXs, meaning that there may be more liquidity and a wider selection of trading pairs available.
- Listing Fees and Regulations: CEXs often charge a listing fee, and in some cases, may have stricter compliance and regulatory requirements. DEXs, on the other hand, often don’t charge listing fees and have lower barriers to entry.
- Examples of CEX: Binance, Coinbase, Bitstamp, Kraken etc.
- Examples of DEX: Uniswap, SushiSwap, PancakeSwap etc.
You can imagine CEX being your local grocery store with every item carefully inspected, meeting requirements before being put on the shelf, while DEX is like your local marketplace, where getting a stand is easier and locals are screaming on top of one another, selling all kinds of stuff.
Ultimately, the choice between a CEX and a DEX will depend on your specific needs and goals. If you prioritize privacy and low barriers to entry, DEX would be a better option. If you prioritize advanced trading features, better exposure, and higher trading volume, a CEX might be a better choice.
But today we are going to focus on CEX.
What are the steps in the process of getting listed?
1. Prepare necessary documentation
When preparing to list your token on a centralized exchange, there are certain documentation and information that is typically required.
- Whitepaper: A whitepaper is a document that provides detailed information about your project, including its goals, features, and technical specifications. It should explain what problem your project is solving and how your token or digital asset is intended to be used. It’s a common practice for the exchanges to require the whitepaper to have a detailed explanation of the tokenomics, smart contract architecture, and legal and regulatory compliance.
- Business Plan: A business plan is a detailed document that outlines your project’s overall strategy, including its revenue streams, target market, and growth plans. It should provide a clear understanding of how your project will generate revenue and sustain itself over time.
- Team Information: Exchanges often require information about the team behind the project, including the names, backgrounds, and experience of the key team members. It’s important to showcase the team’s experience in the relevant fields and how they are uniquely positioned to succeed with the project.
- Code audits: Many exchanges will want to see the smart contract code and make sure it’s been audited, that’s why it’s good to have your code reviewed by independent auditors to verify its quality and security
- Token Information: Exchanges also require detailed information about your token, including its total supply, issuance schedule, and inflation rate.
- Legal and regulatory compliance: Exchanges also require information about your project’s compliance with relevant laws and regulations, including its status as a security or utility token.
It’s important to note that different exchanges have different requirements, and some may require additional documentation or information. It’s a good idea to research the specific requirements of the exchanges you are interested in listing on, and ensure that you have all of the necessary documentation and information before submitting a listing application.
2. Community and trustworthy team
Having a strong and active community, as well as a trustworthy and experienced team, can make a significant difference in getting your token listed on a centralized exchange. A community of users and investors who are actively engaged with your project, and who have a vested interest in its success, demonstrates market demand and potential for growth. This can be an attractive factor for exchanges, which are typically looking to list tokens that have a solid user base and are likely to generate trading volume. Additionally, a trustworthy and experienced team that has a track record of success in the industry can also give exchanges more confidence in the long-term prospects of the project, which can make it more likely that they will approve a listing. A good community and trustworthy team can make a token stand out among the many tokens that are looking to be listed and be prioritized for the exchange’s resources to be used for the listing process.
3. Identify your targeted exchange
Before applying to list your token on an exchange, it is important to thoroughly research and identify which platform is the best fit for your project. This process should involve considering a number of factors, such as the exchange’s trading volume, the type of users it caters to, the types of assets it lists, the associated fees and regulations, and its overall reputation and security. Bigger exchanges such as Binance, Coinbase, Kraken etc. have different criteria than some smaller ones. Bigger exchanges might not focus on the amount of capital raised but will rather focus on the trading volume and liquidity of the token, team reputation, tokenomics etc.
4. Having the right market maker
We have already mentioned in our blogs what is market making, and it is absolutely essential to have one in order to get listed on CEX. After working hard to get your token listed on a centralized exchange, it can be devastating to be delisted shortly afterward due to low liquidity. This could happen if the trading volume of the token is not enough to generate enough interest from traders and investors. As a result, the token may not be able to maintain the minimum trading volume or liquidity required by the exchange, which can further lead to a lack of interest from traders and a lack of price discovery, making the token less valuable and desirable.
Approaching listing on an exchange with a market maker immediately sends a signal to the exchange that your project is serious about driving liquidity and trading volume of your token. In addition to providing liquidity to the market, Orcabay can also help you navigate the often-difficult negotiations with centralized exchanges and establish new relationships and partnerships. At Orcabay we have experience working with different exchanges, and we can help you understand the specific requirements and guidelines that need to be met in order to get listed. Orcabay can also provide valuable insights and advice on how to present your project in the best light possible to increase the chances of getting listed. Once your token is listed, a Orcabay will help you establish new relationships and partnerships on the exchange, by providing access to their network of traders, investors, and other market participants. This can help to further drive liquidity and trading volume, as well as help to build a strong community around your project.
5. Pricing of listing
The price of listing a token on a centralized exchange (CEX) can vary widely depending on the exchange and the specific requirements of the listing. Some exchanges charge a flat fee, while others may take a percentage of the trading volume generated by the token. Some exchanges can also charge additional fees for legal and compliance reviews, which are necessary if the exchange operates under certain regulations. The fees can range anywhere from a few thousand dollars to hundreds of thousands of dollars, and some exchanges have tiered fee structures, which means that the price increases based on the trading volume of the token. Some bigger exchanges might also have higher prices due to their position on the market which offers better exposure of the tokens and better liquidity. However this is not always the case, for example, Coinbase does not charge listing fees but may charge different fees in the future.
6. Realistic goals, open communication, and continues work on the project
When working on getting a token listed on a centralized exchange, it is important for the project to have realistic goals and to maintain open communication with the community throughout the process. Setting realistic goals means having a clear understanding of the project’s current status and the resources available, and being realistic about what the project can achieve in the short and long term. This will ensure that the project is targeting the right exchanges and that the resources are being used in the most efficient way.
Open communication with the community is crucial as this helps to maintain a positive reputation and increase engagement. This includes providing the community with regular updates on the project’s development, being responsive to any questions or feedback the community may have and being transparent about the project’s goals and progress.
It is also important for the project team to continue working on the project even if it doesn’t get listed on the exchange right away, as a stagnant project will not be able to generate the trading volume and liquidity that is needed to maintain a listing. Additionally, continuing to work on the project will also show the community and exchange that the project is serious about its goals and the team is dedicated, which can make the exchange more willing to list the project. It’s important to note that exchanges often monitor older applications, and if the project has made progress and shown consistent growth, it may be reconsidered for listing in the future.
Listing a token on a centralized exchange (CEX) can be a complex and time-consuming process, requiring a great deal of research, preparation, and negotiation. It is essential to have a reliable market maker that can provide liquidity, and also help you navigate the process of getting your token listed. Orcabay provides you with the service of a market maker and also helps you throughout the whole process of listing your token on a centralized exchange. We can help with all the necessary steps, from preparing the necessary documentation to negotiating with the exchange, and also provide support in creating a strategy to drive trading volume and liquidity after the listing. Listing your token on a CEX with the help of a market maker like Orcabay can significantly increase the chances of success and provide long-term stability for your project.