Is A Major Exchange Listing Enough to Succeed?September 25, 2018
Most people believe that securing a listing on a renowned Cryptocurrency exchange is a guarantee of success. Once their coins get listed on major exchanges, many project leaders relax and think it is done. However, this popularly held opinion has been found to be untrue. A closer look at the various major Cryptocurrency exchanges reveals that although there are coins that have been successful, others are still struggling and have low trading volume.
Misconception About Major Cryptocurrency Exchange Listing
Many ICO teams and project leaders work towards listing their coins in major exchanges. They believe that achieving this important milestone is a guarantee to succeed. Nevertheless, the credibility, validation, and liquidity that come with the listing are instrumental in enhancing the growth of the new currency and advancing it to the next level. Securing a listing in such exchanges provides token-holders with an opportunity to pass their assets to the next traders.
However, when projects get listed on these major exchanges, project owners soon discover that their belief that it would guarantee their success was wrong. Unknown to many, creating a token with long-term value and high demand is a daunting task. Most project leaders ignore important inputs such as partnership forging, protocol enhancing, community building, and the hard work that are needed to ensure the project becomes successful. Listing a project on a major exchange is just one of the important things you need to do to succeed.
The Exchanges Cannot Create Demand
Currently, there is a high number of assets available making it easy for people to slip in and out of the different tokens. Nevertheless, although the exchange makes the coins easily available in the market, they cannot create the demand. As a project leader, you need to give the traders a reason to purchase your coin. This is where most projects fail as they only concentrate on listing.
Some Cryptocurrencies On Major Exchanges Have Low Volume
Binance, for instance had a $1.3 billion trading volume in the last 24 hours. EOS and stellar recorded a trading volume of $42 million and $20 million respectively. However, a look at some of the other tokens on the exchange reveals a different picture. There are many altcoins with trading volume of between 0% and 0.01% on the exchange. For instance, in the last 24 hours, the QLC Chain (QLC/BTC) and Bread (BRD/ETH) recorded a trading volume of $71,000 and $12,000 respectively. There are more currencies with an even lower trading volume on Binance.
The story is not different in other exchanges such as Okex and Huobi. On Okex, over 500 trading pairs have zero to single digit trading volume. For instance, Unikoin Gold (UKG/ETH) recorded a trading volume of $1 in the last 24 hours. At Huobi, ADX/ETH pair as not yet passed the $1,000 mark.
Most of these major exchanges charge hundreds of dollars to list these Cryptocurrencies. Given that there are many altcoins already listed in these exchanges but have not succeeded, it is essential for project owners to work hard and not just rely on listing to succeed. It is important to spend more time and resources in developing a coin that will have demand than rushing to list on a major exchange.