Each cryptocurrency project has a whitepaper and a roadmap to present its project and make it known to the public little by little. In general, a presale takes place as soon as possible in order to discover the project, and also to raise funds for long-term financing.
Among all the steps that transform a coin from a simple project to a cryptocurrency, is made available on many centralized exchanges (CEX) and is a mandatory requirement for long-term success. Indeed, trading platforms provide visibility and also trading volumes to potentially increase the price of crypto.
Let’s take a closer look at how setting up new cryptocurrencies on a centralized exchange platform and why this vital step does not necessarily guarantee a reliable or still viable project.
presale marks an important milestone for launching a crypto project. First of all, it is a good way to allow anyone to invest and therefore to obtain funds to finance the project over the long term, but also to obtain liquidity.
Likewise, the pre-sale provides visibility and helps determine if the investors are there or if more needs to be done to generate much more excitement across the community to help the project get off the ground.
Thus, presale is a milestone that can already determine the success or failure of a project, but it is also the ideal time to prepare for the other stages, including listing with trading platforms, which generally occurs at the end of the presale.
This is a crucial step that should not be overlooked and which will potentially ensure the good health of the cryptocurrency in the long term just as it does not mean that the project will be a success.
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Why get listed on trading platforms?
Getting listed on a centralized exchange includes many advantages for a new cryptocurrency. Indeed, this will increase its visibility with new traders and investors, which is never a negative point.
In addition, the fact of being available on various platforms brings exchanges which increases the liquidity of the crypto, but above all, it can positively influence its price in the event that the demand for purchase will be stronger than the sale.
There is therefore every interest for a project to be listed as soon as possible on a maximum of exchange platforms while targeting as a priority the most important ones, those which bring together the most traders in order to increase their visibility even more.
Although the goal of all new projects is to be available on as many exchange platforms as possible, especially the most important ones like Binance, there are conditions to be respected just as it is not necessarily easy.
The more influence an exchange has, the more it can afford to be strict and define its rules as it sees fit. It must also be taken into account that an exchange platform does not want to make a crypto-currency available for free, there are fees to pay in addition to respecting certain criteria which come up most of the time anyway each CEX has its own way of deciding.
Beyond the financial aspect that most exchanges require, they will check the whitepaper, and the project itself and also analyze investor enthusiasm around the latter as if there is liquidity available.
Know how to take precautions
A project that joins a centralized exchange platform, does not guarantee that it will be successful or that it is completely reliable. This is because exchanges make money from transaction fees, so they have an interest in getting new users.
However, an exchange cannot guarantee that a project is not a scam and they also have “all power”. That is to say, if the project does not meet the required conditions, the exchange platform may interrupt or delete the crypto at any time: what is called le delisting.
Therefore, do not consider a project as real and reliable simply because it announces its arrival on an exchange platform. Pay attention to red flags, be careful and never invest more than you can afford to lose.
A trading platform uniquely aims to bring together as many users as possible and to make money mainly on transaction fees. It does not work in your interest and the regulations around them are still relatively limited or even non-existent. Therefore, be careful which ones you choose as well.
The Shopayment case
Shopayment is a potential scam case that took place recently and perfectly illustrates the situation described above. Indeed, this project ended its presale recently and was able to obtain its listing on Bitmart.
After many adventures, the crypto-currency could therefore be traded on bitmart, but within a few days, the exchange decided to delister Shopayment following its price which was only falling, and other information, was still uncertain.
Thus, as a user, there is no other solution than to suffer the situation without knowing if the project will be back or not. This is why, regardless of the pre-sales on which you bet, be vigilant, form your own opinion, and above all never consider only a listing on an exchange platform. means that the project is real.
There are many exchanges and among them, Binance is the most popular across the world. Its CEO, Changpeng Zhao recently spoke about his desire to partner with Musk’s Twitter and in particular the 500 million dollars invested for these purposes to educate the public about Web3.