4 Cases When it is Impossible or Useless to List a Token
For sure, you don’t want to face a situation when your token is not well enough prepared for listing on an exchange. Reasons may vary. But where a big exchange dictating overly strict requirements is one thing, not fulfilling typical expectations is quite another. Here are 4 most common reasons why it can be impossible or useless to list a token.
Case 1. Technical non-compliance
The main reason why listing can turn out to be unsuccessful is poor technical condition of the token. This means that a project might have a poorly prepared white paper, as well as underdeveloped tech specification or smart contract.
This case can be quite relevant for beginners — companies that intend to make their tokens popular and listed fast. As a rule, it is not very useful to try to get listed on the market-leading exchanges. Instead, one should better try to communicate with mid-tier exchanges and get a piece of advice from their competent specialists on the problems that might arise.
Thus, if you are still unsure about your technical conditions, better to be on the safe side and check everything beforehand.
Case 2. Legal issues
The next sphere which involves a lot of effort and consideration is the legal sphere. It is already a norm that big exchanges require full legal compliance and thorough verification. On the contrary, the smallest exchanges might accept tokens without hesitation, just to make sure they don’t miss the client. And somewhere in between there are medium-sized exchanges, which might probably be the best option for you.
Why? Well, these exchanges do conduct checks and testing, because they want to maintain their good reputation with healthy tokens — and that’s good. What’s even better is that these checks and verifications do not last for weeks. Every procedure is polished well enough to get done faster. And if the exchange has an obligatory legal compliance check, they will notify you about it at once, so that you would have time to get a legal expert in the cryptocurrency sphere.
Case 3. Unprepared community
The third case to describe can be called as unprepared community. For this case it is possible to mention ideas which found no response in people, which could cause weak support in the community and absence of active interest among potential buyers.
Another factor which can be added here is the saturated market. The coin and the project are intended to ideally suit the audience. If it is not the case, your coin can be of no interest to the exchange and to the people, so the things will not work properly here.
Needless to say that a useless idea of the project behind the coin may be the reason of the problems arising. If you have just started and don’t have significant expertise yet, chances are that your project will not live up to their expectations.
There is another possible reason to mention, which is the absence of social network activities. In this case listing may only worsen the situation, as long as the coin supporters have not been properly attracted to the project before that. Thus, even if the coin gets listed in the exchange, it does not mean that it will actually work — it might rather pass unnoticed, which is a waste of time and money that should be avoided.
It is a good situation when your token is used as a currency for in-project purchases. Still, sometimes even in this case the listed token may lose its price, which means it will not bring profits to the project.
Case 4. Lack of development
Last but not least comes the lack of development. For this case it is necessary to mention that the dynamics of the project development after listing can significantly influence the effectiveness of listing. The project dynamics must be positive, and you need to keep your community up to date with the latest developments.
All of these cases show that thorough planning and preparation, as well as active work in social media might help avoid a lot of wasted time and money.