What are the requirements that leading crypto exchanges have these days?

What are the requirements that leading crypto exchanges have these days?

In the early days of crypto, listing a coin on an exchange was not that hard. These days, the majority of global crypto exchanges are evolving quite quickly, as they grow savvier in terms of regulations. In addition to all the requirements listed above, every individual exchange might have some extra criteria for listing.

This brings us to a new crypto world with strong and valuable assets that are benefitting all participants of the market. The times of shady projects that are taking advantage of the opportunity are over, with trust and reputation leading the way to success in crypto space. 

The leading cryptocurrency exchanges acknowledged this truth a long time ago and now have tightened their regulations.

What are the requirements that leading crypto exchanges have these days?

When a particular cryptocurrency exchange is considering whether to list an asset on its platform, its biggest concern is whether this asset is secure. There are a number of ways of how exchanges answer this question – we will present them in the form of questions:

  1. What is the idea behind the project? Is it relevant and useful?

The very first and the most important question, is, without a doubt, about the idea of the project. Why?

The idea or the value proposition behind the coin is the key to its long-term success. The usefulness and relevance of the project will determine how long the project will survive and how popular it will be. Thus, cryptocurrency exchanges take this point very seriously. 

2. Who is behind the project?

Another very important point for cryptocurrency exchanges is the team behind the project. One might argue with this point, saying that nobody knows the person/team behind Bitcoin, the cryptocurrency pioneer, but we will say that one was an exception. 

Every single exchange is evaluating the team behind the project – their skills, background, communication with the public, and their social media activity. All of these factors provide exchanges with an idea of how transparent and stable the project might be.

3. Tokenomics and financial strategy of the project

Tokenomics of the project is the mechanism of the token implementation within an ecosystem. This explains how the token will be used by the users and why should such a token be created. This part is usually explained in detail in a whitepaper, so paying close attention to the creation of a whitepaper is a must when it comes to preparing for a listing on an exchange. 

4. Does the project have any community support?

If a project has a substantial base of followers, this will definitely play a role in the decision-making process of an exchange. Not only community support in the crypto world usually means that the project is believed to be valuable, but it also means a ton of new users for an exchange. 

5. Are there any partners?

Partners are like the stamps of approval – if a project has partnered with reputable and well-known companies, that means those companies are not afraid to associate themselves with it. While this point might seem insignificant to some people, this means a lot to crypto exchanges – they carefully review the list of partners before making the final decision. 

Legal Aspect

In addition to the points mentioned above, a large number of exchanges also look into the legal aspect of the project in question. The key purpose of the legal opinion on a project is to conclude that the token is a utility. 

Stay tuned for the next piece of article series about the top cryptocurrency exchanges and differences in their listing criteria and application processes.

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