For any cryptocurrency, getting listed on an exchange is a crucial step. It’s what makes a token truly accessible to a broad audience of investors. Every crypto project team aims to get their token traded on an exchange because it doesn’t just open doors for the project’s growth—it also plays a huge role in the token’s liquidity and price.
Why Listing Matters
Listing a cryptocurrency on an exchange serves a purpose similar to stock market listings. It makes the token available for purchase by a wide range of investors and allows them to profit from price fluctuations. For the project’s team, it’s an opportunity to attract additional liquidity and expand the reach of their token.
Just like companies going through an IPO, crypto projects often face a long road before successfully listing their tokens. It can take significant time and financial investment. However, in the decentralized world of crypto, the complexity of this process depends on factors like the jurisdiction of the exchange, the token issuer, and whether the token is operating within legal frameworks or prioritizing mass adoption.
High-quality projects with well-structured tokenomics and clear listing goals aim for top-tier centralized exchanges (CEXs). These exchanges, in turn, carefully scrutinize projects before allowing their tokens to be traded.
Why Crypto Projects Push for Listings
Listing a token on an exchange significantly boosts its liquidity. Once listed, users can freely buy and sell the token, creating a dynamic market. This also increases the project’s visibility among investors. Large centralized exchanges like Binance and Coinbase offer high liquidity thanks to their vast user bases, while decentralized exchanges (DEXs) like Uniswap and PancakeSwap enable direct token swaps without intermediaries. However, trading on DEXs carries risks like low liquidity and smart contract vulnerabilities.
A perfect example of how listings impact token prices is PEPE and TRUMP. When PEPE was listed on Coinbase on November 13, 2024, its price skyrocketed by 75%, reaching $0.000022. Within 24 hours, the token surged 40%, and within a week, it was up 96%. TRUMP followed a similar pattern.
After listing, a token’s price can fluctuate based on various factors, with community interest being one of the most significant. A strong following can lead to immediate price surges, while high trading volumes indicate sustained demand, which helps maintain or increase the price. Media coverage also plays a crucial role. Unlike traditional stock markets with strict regulations, crypto markets are highly volatile, making investments riskier.
Regulations and Jurisdictions Matter
In regions like the EU and the U.S., regulations heavily influence token listings. The classification of a token dictates the requirements for its issuer. For instance, since late 2024, discussions in the EU have centered around delisting USDT due to its failure to meet the bloc’s stablecoin regulations.
Steps to Get Listed on an Exchange
For a crypto project to successfully list a token on an exchange, it typically follows these steps:
- Researching Exchanges & Regulations – The team evaluates possible exchanges and considers regulatory requirements. Even offshore exchanges must comply with the rules of their users’ jurisdictions, meaning availability can vary by country.
- Preparing Documentation – This includes crafting a comprehensive Whitepaper and meeting all regulatory requirements.
- Applying for a Listing & Passing Evaluation – Exchanges conduct thorough checks on the token, its issuer, and the development team. This process can take months.
- Marketing & Community Engagement – Generating buzz before the listing is crucial. The more interest the project garners, the better its chances of a strong market debut.
- Launch & Trading Begins – Once the token is listed, trading officially kicks off.
That said, there are always exceptions. Many exchanges proactively list tokens to attract traders, especially hyped-up memecoins or trending AI-related tokens. Additionally, anyone can list a token on a decentralized exchange with no restrictions—just supply and demand. But this lack of oversight also makes DEXs a hotbed for scams and fake tokens, posing security risks for traders.
Final Thoughts
Getting listed on an exchange is a major milestone for any crypto project. It drives liquidity, boosts visibility, and can significantly impact token prices. However, the process varies based on regulations, the exchange’s policies, and market trends. While centralized exchanges offer security and higher liquidity, decentralized ones provide freedom but come with risks. As the crypto space evolves, understanding the listing process becomes even more critical for investors and project teams alike.