Getting Listed on Crypto Exchanges

• Getting listed on decentralized exchanges (DEXs)
  • Uniswap
  • PancakeSwap
  • SushiSwap
  • What you should know about listing on DEXs
  • Adding a token to a DEX: A Uniswap example
• Getting listed on centralized exchanges (CEXs)
  • Tier 1 exchanges
  • Tier 2 exchanges
  • Tier 3 exchanges
• Market making after listing

Let’s say you have issued a cryptocurrency in the form of a coin with its proprietary blockchain or a token on an existing blockchain. Then you have made a website and built a community. And now you want to let users exchange your cryptocurrency for other coins, tokens, or stablecoins.

For that, you need to apply for listing your cryptocurrency on exchanges. And this is what we would like to assist you in. You can introduce your token to centralized exchanges (CEX) and decentralized exchanges (DEX). If you have a coin with a proprietary blockchain, your only option is centralized exchanges. Let’s look at the listing process for both types of exchanges.

Getting listed on decentralized exchanges (DEXs)

Every DEX works like a trading machine: they perform exchange transactions automatically using smart contracts deployed on the network where tokens are exchanged. All this occurs without involving a human. And since the code of smart contracts is public, anyone can inspect it for malicious segments.

This is why many people trust DEXs. The Block has some statistics to prove this fact. In November 2022, DEX trading volume reached $107 million, which made 16% of the total trading volume on centralized exchanges — showing a 563% increase against November 2020.

DEXs became the most popular decentralized apps, handling most transactions on blockchains. They also contribute to DeFi projects by providing their protocols and users with the necessary liquidity.

We will discuss three popular exchanges.

Uniswap

This most popular DEX was launched in November 2018. It became the first DEX capable of rivalling centralized exchanges in terms of trading volumes.

Uniswap V2 operates on the Ethereum blockchain. Released in May 2021, V3 also supports Arbitrum, Celo, Optimism, Polygon.

Here you can create trading pairs with tokens and stablecoins of the ERC-20 standard.

PancakeSwap

This popular DEX was launched in September 2020. At that time, it was only funded by its founders, but today it is financed from its own treasury to which 9% of each trading fee charged is contributed.

PancakeSwap operates on BNB Smart Chain (formerly Binance Smart Chain). Released in December 2022, V2 also supports Aptos and Ethereum.

Here you can create trading pairs with tokens and stablecoins of the BEP-20 standard.

SushiSwap

This DEX was originally introduced in September 2020 as Uniswap’s hard fork. It gained traction as a place that welcomes a dozen blockchains and layers of both levels.

SushiSwap operates on the Ethereum blockchain. From 2021 to 2022, it added support for 12 more networks: Arbitrum, Avalanche, BNB Smart Chain, Celo, Fantom, Fuse, Gnosis, Harmony, Moonbeam, Moonriver, OKExChain, Polygon.

Here you can create trading pairs with tokens and stablecoins of the ERC-20 standard.

What you should know about listing on DEXs

First and foremost, getting listed on a DEX is a prerogative of the tokens working on the same blockchain as the target exchange. For example, Uniswap only accepts ERC-20 tokens, which can only be traded against the tokens issued on the same blockchain.

Secondly, coins with a proprietary blockchain can’t be listed on a DEX. It’s also impossible to create a trading pair with other independent coins (e.g. bitcoin) because they aren’t listed on DEXs.

To get around this restriction, developers issue so-called wrapped tokens. For example, Wrapped BTC (WBTC) is a tokenized bitcoin that is actually an ERC-20 token. WBTC holders can utilise Ethereum-based De-Fi protocols and the liquidity of the Bitcoin ecosystem on the Ethereum network.

WBTC tokens are issued through exchanging genuine bitcoins for their wrapped counterparts. And this transaction is performed manually by a restrained scope of persons. The process isn’t transparent and dubious, so we don’t recommend using wrapped bitcoins.

Adding a token to a DEX: A Uniswap example

Let’s look into the process of creating a trading pair (listing a token) on a DEX. For that, we need to build a liquidity pool. This can be done almost for free: we only have to pay the network fee.

Here’s what we will need:

• A crypto wallet. Uniswap supports MetaMask, Coinbase Wallet, and WalletConnect.
• The contract address of the ERC-20 token that you are going to take to Uniswap. Your token must be deployed on the Ethereum’s mainnet and available in the crypto wallet. You can get the token’s contract address on Etherscan.io.
• ETH to pay for gas. Adding a new token, exchanging, providing the liquidity — all this needs gas, which is paid with ETH.
• Liquidity to create a pair. We need to freeze the liquidity in both tokens in the pair. For example, you issued a PGT token and want to create a 1:1 pair with USDT for 1000 units. You will need 1000 PGT and 1000 USDT.

Adding a token to Uniswap consists of three steps:

1. Unlock your wallet, connect to Uniswap, and check token availability. For that, go to https://app.uniswap.org and in the top-right corner click Connect wallet. Select MetaMask or another wallet you have, unlock it, and click Connect. Once your wallet is connected, go to https://app.uniswap.org/#/swap, click Select token and find your token. Since this is a user-generated token, it won’t be on Uniswap’s default list. You need to find the token by contract address.
2. Build a liquidity pool. Go to https://app.uniswap.org/#/pool/v2 and click Create a pair. To get listed on Uniswap, you have to provide the liquidity — not just to the token you add but also to the token that will be paired with yours. The ratio in your pair defines the price of your token. For example, you provide 1 ETH and 100 PGT. This means the price will be 0.01 ETH for 1 PGT.
3. Approve tokens on Uniswap to automate transactions. Click Approve on the token name and confirm the transaction in your wallet. After that, click Create a pool and Supply to confirm the token list. MetaMask will request a confirmation, and the network will charge a small fee in ETH for this transaction. Eventually, you will see this message: ‘Transaction submitted — View on Etherscan.’

You have just created a pair and provided the liquidity. Congratulations on getting your token listed on Uniswap!

Getting listed on centralized exchanges (CEXs)

As of late 2022, there are more than 300 CEXs, 244 of which are featured in the CoinMarketCap catalogue.

In most cases, CEXs charge a listing fee in bitcoins or stablecoins. The more renowned the exchange, the higher the fee.

There are three tiers of CEXs: Tier 1, Tier 2, Tier 3. The tier depends on the exchange’s popularity. And the higher the tier, the more difficult it is for a token developer to get listed. But on the other hand, getting featured on a popular exchange generates more value.

Tier 1 exchanges

This is the elite that you can find in CoinMarketCap’s Top 15. It includes such giants as:

• Binance
• Coinbase Exchange
• Kraken
• KuCoin
• Bitstamp

They need no introduction, so let’s jump to the terms.

To get listed on a Tier 1 exchange, you will have to offer the following:

• A breakthrough idea or technology. If you have just released yet another ERC-20 token and aspire to take it to Binance, get ready for a rejection. The chances are much brighter for projects having a proprietary blockchain or having something innovative.
• A large community. Your project must have a broad interest and see at least 50,000 living followers (not bots) in its main communities.
• A transparent team. All key team members must be real people with proven experience in cryptocurrencies and a LinkedIn profile. Since large CEXs necessarily conduct KYC, they will request identification documents and invite you to a video interview.
• A legal opinion. You need to provide a legal opinion from an accredited legal firm (every exchange has a list of such companies) where it is stated that your cryptocurrency isn’t a tokenized security.
• Participation in accelerators or hackathons. Major CEXs have their own accelerators, for example, Binance Labs. Being a member of such a community boosts your chances.
• Renowned funds who invested in your projects. This requirement may be optional. But if some respected funds are amongst your early investors, you can count on greater listing chances.

The requirements are kind of strict just because the exchange’s reputation is at stake. On top of meeting these requirements, you need to pay a listing fee that may reach 2,000,000 USDT. In some cases, an exchange may require a share in the issue volume instead of the listing fee. And this is a good sign meaning that the exchange has faith in your success and expects to capitalize on your growth.

How getting listed on a Tier 1 exchange can benefit you:

• Trading opportunities. Opening a trading pair allows you to perform transactions, deposit and withdraw cryptocurrency through the exchange.
• Convenient trading. Most traders have accounts with at least 3 major CEXs. Once a new cryptocurrency emerges, they don’t have to sign up again and can start trading right away.
• Audience. A part of the vast audience of major CEXs will take notice of the new project after listing is announced. And some may even want to buy some coins. You can also negotiate a promotion campaign in which the exchange would advertise your project in its channels.
• Trust. A cryptocurrency listed on a respected CEX is definitely not a scam. People believe such exchanges as Binance inspect projects thoroughly before introducing them.

Tier 2 exchanges

These are good average performers from CoinMarketCap’s Top 50. This group includes less well-known exchanges such as:

• MEXC
• Upbit
• Poloniex
• Bittrex
• Local, for example, BtcTurk

Tier 2 exchanges usually set softer—and fewer—requirements:

• A breakthrough idea isn’t a requirement but will be an advantage.
• A community is required. But it can serve a medium-size audience.
• Participating in accelerators or investments from renowned funds are just an option.
• A publicly known founder is enough. Team transparency isn’t required.
• A legal opinion may be requested if it is difficult to determine whether the cryptocurrency being added has signs of a tokenized security.

Tier 2 exchanges focus more on earning from listing payments they receive from newcomers. The listing fee starts from 30,000 USDT and may reach 300,000 USDT.

How getting listed on a Tier 2 exchange can benefit you:

• Trading opportunities. Opening a trading pair allows you to perform transactions, deposit and withdraw cryptocurrency through the exchange.
• Audience. Average CEXs can serve broad audiences. You can also negotiate a promotion campaign in which the exchange would advertise your project in its channels. This may ignite interest but don’t expect any viral effect.

Tier 3 exchanges

These are all other exchanges who can’t make their way to CoinMarketCap’s Top 50. The lower the rank, the less popular the exchange is.

Tier 3 exchanges are fully concentrated on earning from listing payments they receive from newcomers. The listing fee starts from 4000 USDT and may reach 40,000 USDT.

These small-sized CEXs only require a payment and often don’t bother to carry out a KYC. Getting listed on such an exchange could only provide you with a technical opportunity to trade your cryptocurrency. But in 99% of cases traders would have to sign up for a little-known exchange.

Market making after listing

Now that your coin or token can be traded freely, you need to maintain and manage its price, ensuring sufficient trading volume. This process is called market making.

Remember that the free trade market is a wild one. You will have to oppose professional traders and bots created by exchange founders to suck up your liquidity. This is why a safer way is to delegate market making to a competent team that has a kit of automated tools — trading bots.

You can learn more about it in ‘Market Making for Crypto Projects.’

The Polygant team has been involved in coin and token listing for more than 6 years. We have successfully added our clients’ cryptocurrencies to various exchanges. Contact us on Telegram or using the feedback form and tell us what you are going to introduce and where. We will settle everything for you.