The world of cryptocurrency is home to a vast array of different digital assets and tokens, creating a challenge for centralized exchanges (CEX) when it comes to deciding which coins to list.
With approximately 15,000 cryptocurrencies in the market, including big names like Bitcoin (BTC), stablecoins such as Tether (USDT), exchange tokens, memecoins, and more, global exchanges like Binance only list around 2.5% of these tokens. Binance, for example, currently lists 378 cryptocurrencies on its platform.
To assist exchanges in making informed decisions about which cryptocurrencies to list, Nansen, an onchain analytics firm, has partnered with the Bitget crypto exchange to release a new report titled “Discovering Token Potential for Trading and Exchange Listing.”
The report combines Bitget’s market expertise with Nansen’s blockchain analytics to offer users a deeper understanding of the cryptocurrency investment landscape. Bitget emphasizes key principles when considering a token for listing, such as evaluating its growth potential, listing popular assets promptly, and providing users with a diverse range of options.
Bitget has implemented an automated onchain data monitoring system to assess coins for listing based on five key dimensions: market traction, community verification, tech innovation, token economics, and security. The report stresses the importance of strict control to avoid listing high-risk assets, highlighting the need to assess risks related to smart contract security and token distribution.
For already listed tokens, it’s crucial to consider risks like trading suspensions and the potential for changes in token balances by the contract issuer. Projects where the team holds 50% or more of the tokens are deemed highly centralized and risky, with the report recommending that token creators should not control more than 20% of the token supply.
Ruslan Fakhrutdinov, CEO and founder of the hybrid crypto exchange X10, notes that smaller exchanges face the challenge of limited liquidity in each market, making it necessary to strategically select which tokens to list. Fakhrutdinov advises exchanges to conduct thorough research on a token’s team, roadmap, and project details to avoid listing unreliable tokens and potential future delistings.