The cryptocurrency industry includes a wide variety of crypto assets and tokens, which puts pressure on centralized exchanges (CEX) in terms of choosing the right coin for listings.
According to data from CoinGecko, the crypto market features roughly 15,000 cryptocurrencies, including coins like Bitcoin (BTC), stablecoins like Tether (USDT), exchange tokens, memecoins and others.
Out of this amount, global exchanges like Binance only list about 2.5% of tokens, as Binance lists 378 cryptocurrencies on its platform at the time of writing, according to Coinranking data.
People may wonder how best to approach the process of choosing the right cryptocurrency for listing on a CEX. To help exchanges efficiently handle coin listings, the onchain analytics firm Nansen has collaborated with Bitget crypto exchange to issue a new report called “Discovering Token Potential for Trading and Exchange Listing.”
In the report, Bitget and Nansen Research teams employed different approaches to evaluate token potential depending on the token cycle. For early-stage tokens, the firms focused on offchain metrics and traction, while for established tokens, the analysts used onchain metrics.
Bitget's research highlights token listing criteria
Published on July 29, the joint report combines Bitget’s expertise in market dynamics with Nansen’s blockchain analytics, aiming to provide users with a more informed crypto investment experience.
Bitget highlighted its core principles when listing a token, such as considering a token’s growth potential, listing popular assets quickly and offering users a comprehensive range of options.
The Bitget research team has also set up an automated onchain data monitoring system to evaluate coins for listing in five key dimensions, including market traction, community verifying, tech innovation, token economics and security.
“Strict control is essential to make sure no high-risk assets are listed,” the report notes, adding that it is crucial to assess risks related to smart contract security, token distribution and others.
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For already listed tokens, it is important to look at risks like suspended trading and the possibility for the contract issuer to change balances. The report noted:
“When it comes to token distribution, projects where the team keeps 50% of the tokens are considered highly centralized and risky. Generally, addresses related to the token creator should not hold more than 20% of the supply.”
Approaches to listing tokens by exchanges
According to Bitget Research chief analyst Ryan Lee, different exchanges have various standards for listing tokens, primarily considering factors such as the token's wealth effect, trading demand and associated risks.
He stressed that CEXs often do not disclose their listing standards due to competition purposes, stating:
“It’s important to note that the specific methods used by centralized exchanges to evaluate tokens are core competitive advantages and are not typically disclosed publicly.”
Lee went on to say that the number of assets listed on an exchange varies based on standards by a particular exchange. While some exchanges prioritize the trading popularity of tokens, others focus on deep collaborations with project teams.
He also mentioned that discovering quality projects can be approached from both onchain and offchain perspectives. Among offchain discovery tools, Lee mentioned Trendx, Rootdata, Messari and DefiLlama, while onchain project discovery tools include instruments like DEX Screener, Dextools, Pump.fun and others.
Exchanges must strategically select tokens for listing
According to Ruslan Fakhrutdinov, CEO and founder of a hybrid crypto exchange, X10, smaller exchanges are unable to list every token because there is not sufficient liquidity in each market.
“Therefore, they must strategically select specific tokens to list,” Fakhrutdinov told Cointelegraph, adding that exchanges should avoid listing unreliable tokens and prevent future delistings.
To prevent listing unreliable tokens, exchanges should research the token’s team, roadmap and project details, Fakhrutdinov stated, adding:
“Scam tokens often have little to no information about the people behind the project or vague, unrealistic plans.”
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