The realm of cryptocurrency encompasses a vast array of different crypto assets and tokens, which presents a challenge for centralized exchanges (CEX) when it comes to selecting the right coins for listings.
Data from CoinGecko reveals that the crypto market is home to approximately 15,000 cryptocurrencies, ranging from popular coins like Bitcoin (BTC) to stablecoins such as Tether (USDT), exchange tokens, memecoins, and more. Despite this vast number, major exchanges like Binance only list around 2.5% of tokens. Currently, Binance lists 378 cryptocurrencies on its platform, according to Coinranking data.
With so many options available, individuals may be curious about the best approach to take when choosing a cryptocurrency for listing on a CEX. To assist exchanges in streamlining the coin listing process, the onchain analytics company Nansen has teamed up with Bitget crypto exchange to release a new report titled “Discovering Token Potential for Trading and Exchange Listing.”
In this report, Bitget and Nansen Research teams have employed different strategies to evaluate token potential based on the token’s stage in its lifecycle. For newly launched tokens, the focus is on offchain metrics and traction, while for established tokens, onchain metrics are utilized.
The joint report, published on July 29, leverages Bitget’s market expertise and Nansen’s blockchain analytics to offer users a more informed crypto investment experience. Bitget emphasizes core principles when considering a token for listing, such as assessing its growth potential, promptly listing popular assets, and providing users with a diverse range of options.
Additionally, Bitget has implemented an automated onchain data monitoring system that evaluates coins based on market traction, community engagement, technological innovation, token economics, and security. The report stresses the importance of strict control to ensure that high-risk assets are not listed, emphasizing the need to evaluate risks related to smart contract security and token distribution.
Even for tokens already listed, it is crucial to consider risks such as suspended trading and the potential for changes in token balances by the issuer. According to the report, projects where the team holds 50% of the tokens are deemed highly centralized and risky, with addresses related to the token creator ideally holding no more than 20% of the supply.
Ruslan Fakhrutdinov, CEO and founder of the hybrid crypto exchange X10, highlights the challenge faced by smaller exchanges in listing tokens due to the requirement for sufficient liquidity in each market. Fakhrutdinov emphasizes the importance of strategically selecting specific tokens for listing to avoid unreliable assets and future delistings.
To mitigate the risk of listing unreliable tokens, exchanges should conduct thorough research on the token’s team, roadmap, and project details before making a decision.