Here’s A Shining Example Of The Silent Business Of Coin Listings On Top Exchanges From Decred Team

$3 Million To Get Listed On A Cryptocurrency Exchange

In a recent article released by The Block, Frank Chaparro discusses how opaque and difficult is to get listed on an exchange in the cryptocurrency market. The process is something that many new projects have to experience when they try to get listed in some popular exchanges.

During a conversation with The Block, Jonathan Zeppettini (JZ), in charge of Decred’s listings, he explains the crypto path they had to follow to get listed on Vergbase. The exchange allows U.S. investors to purchase virtual currencies with fiat.

In general, the project has good relationships with the exchanges on which it is listed. That includes Vertbase. However, he explained that there are some exchanges that make things more difficult.

In general, to list a token on a crypto exchange is much more difficult than listing a company on a stock exchange. He said that after explaining how much companies need to pay as listing fees at the New York Stock Exchange (NYSE) and Nasdaq.

Zepettini commented that there was an exchange that asked $3 million to list their token. This is completely insane compared to other platforms. And indeed, the exchange is not even in the market yet.

Richard Johnson, a market structure specialist at Greenwich Associates, said:

“This tells us two things: firstly crypto exchanges have significant market power; and secondly, these coin issuers must expect to receive significant value to pay these fees. But we’ve seen coin’s market cap triple when a major listing was announced – so in a way, it’s a rational decision for coin issuers.”

He went on saying that this also shows the ‘wild west’ nature of the current market. This is why there are some regulators that are already looking into this practice.

According to a recent report released by Bloomberg, the Ripple company offered $100 million worth of XRP to Coinbase, one of the largest and most popular crypto exchanges in the market, to let users trade the digital asset. At the same time, Ripple has offered Gemini $1 million for them to list XRP.

XRP is one of the largest digital currencies in the market and Ripple owns 60% of the total supply of this currency. The company is able to pay such large fees for exchanges to list the cryptocurrency. However, Coinbase and other major exchanges are waiting for a clear definition from the SEC regarding Ripple’s legal status before they list the coin.

Zeppettini is asking for fairness. They are also willing to pay listing fees that reflect the actual integration cost. He explained that they would understand if an exchange would have to pay for a developer to add support for the token. This is wh Zeppettini says that if an exchange shows their cost structure, it might be easier for projects to be able to list their tokens in exchanges. However, he believes that in most of the cases, platforms just show a random number ‘pulled out the air.’

There are exchanges that prefer not to take fees from projects that are considered the ‘best-in-class.’ Thus, Decred did not have to pay a fee to be listed on Binance, the largest cryptocurrency exchange in the market in terms of trading volume.

At the time of writing this article, Decred (DCR) is the 33th largest cryptocurrency in the market. It has a market capitalization of $155 million and each coin can be purchased for $16.74.

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