Crypto Exchanges Charge Up To 10X The Amount Traditional Exchanges Take

What happened

According to the report by Autonomous Research, the market price to list a crypto token on an exchange reaches up to $3 million – or almost 10x the amount traditional exchanges request for securities.

Whoah… Can you give some detail?

Sure. According to the researchers’ sources, crypto exchanges take $1 million for a reasonably regarded token, to $3 million for an opportunity to get quick liquidity. NASDAQ or other traditional equity exchanges charge fully registered securities about $55-300k for listing, with annual fees of $100-500k to remain listed.

Why is it important?

Comes without saying, ICOs are highly dependent on crypto exchanges. After selling non-dilutive digital assets that are in many ways just free funding, project owners owe nothing to utility token buyers by law, and often overfund the project by a factor of 5-10x relative to early stage fintech startup.
As a result, ICOs are expected by buyers to get liquidity on the crypto exchanges, and preferably the bigger ones. That allows the latter to boost the fees – reportedly, in 2017, Coinbase have made a $1 billion in profits.

What can we learn from it

  •  When planning an ICO and a consequent listing on exchange, it’s important to factor in some hefty costs into the raise amount.
  •  Tokens are more attractive if buyers know they can trade them easily, so the choice of exchange (and, unfortunately, the amount you’re ready to pay) can define your ICO success.

Related Articles