If you are interested in cryptocurrency and exchanges, you might have noticed already that different platforms list different amounts and different types of coins. How do the exchanges choose these coins? Have you ever thought about it?
Different Platforms Have Different Criteria for Listing
The main reasons why different platforms list a different number of coins are different requirements for the coins to be listed. Along with the requirements, also some technical features of a platform are considered. For a better understanding, let us have a look at the determining factors that allow a specific coin to be listed.
This is, probably, one of the most important requirements to a coin. Both new exchanges such as a cryptocurrency exchange platform LetsExchange.io as well as those platforms that have been around for years operate in a specific legal environment. Thus, legal requirements might differ. However, there are the basics with which all the exchanges shall comply.
Every coin shall be compliant with AML (Anti-Money Laundering)/Combating the Financing of Terrorism law and other relevant security laws. To ensure this compatibility, exchanges validate coins and collaborate with third parties such as Crystal Blockchain Analytics to ensure the legal origins of crypto-coins.
Coins Shall Be Beneficial for a Project
Further, exchanges consider coins based on their suitability for the project. Here, a number of criteria can be considered. A couple of them are the following:
- A team might consider whether the coin is going to help the project to develop.
- Another factor is the supply and demand relation.
- It means that behind a coin, a proven team shall be present.
- Another option might be a coin that has proven itself as the one that has a big potential.
This list can vary from one exchange to another. But simply put, exchanges want good coins, those coins that can bring some benefits to an exchange.
One more important factor for listing is the ability of the team behind a specific coin to react to feedback adequately and efficiently. For example, when a vulnerability is detected, the engineering team shall fix it asap. It is important not only for the team behind the coin but for a cryptocurrency exchange where the coin is listed.
Most platforms perform security audits of the blockchain and the smart contracts if such can be created. Also, the maintenance status and the availability of the source code are checked. It is made to ensure the top quality of coins.
Can a Coin Be Delisted?
Even if a coin was listed on a specific exchange, it doesn’t mean that it will hold this status forever. Exchanges apply also delisting criteria to check whether the coin shall stay or shall be removed from the exchange`s listings.
These criteria can differ, too. But among the most common ones, we can distinguish the following:
- Low trading volumes – it indicates that the community has little interest in a coin.
- Unresponsiveness of the team behind a specific coin – if there are some issues, and nobody is hurrying to fix them, the coin is at risk to be removed from the exchange`s listings.
As you can see, exchanges take care of their reputation and the safety of their users. Thus, all the coins are carefully checked.