Binance listing – and the necessity to hire market makers to manage your liquidity on the exchange

If you are seeking to list on exchanges like Binance, it might also be good timing to understand that you might need some help from an experienced third party. A party, that partners with trading platforms and can guide you through often an uneasy listing process. An entity, that can advise you where to list first and tailor a strategic listing plan for your token project.

Empirica offers token projects support in planning their listings. We will guide you step by step in launching your markets and making them liquid from day one. Check how we can support you in token listing.

As of September 2022, Binance is the largest crypto exchange in the world. With a daily trading volume of over $19 billion, it is the number one digital asset trading platform according to Coingecko. It was founded in 2017.

Binance has managed to establish a huge international community. Today the exchange has 40 multilingual Telegram groups that are aimed at providing users from different regions with the most recent updates.

The Binance team includes over 2000 employees based in more than 20 locations all over the world.

Why list on Binance

For token projects searching for a new coin listing on the platform, Binance has several options. You can apply for a direct listing on the Binance exchange, for listing on Launchpad or Launchpool. Launchpad is intended only for new projects that haven’t issued their tokens yet. As for Launchpool and direct Binance listing, these options are available to both young projects and those that already have their coins in circulation.

Though there are no precise requirements for tokens that will be approved for listing, Binance conducts a serious analysis of each project in order to make sure that only the most high-quality tokens will be presented on the exchange and its apps.

By the time of writing this article, these platforms have already onboarded over 60 tokens.

At the moment, Binance offers 357 coins and 1471 pairs for trading.

Binances score metrics

When choosing a venue for listing, it is important to check its reputation and general rank in comparison to other exchanges. A good choice is to check how CoinGecko, CoinMarketCap and Nomics rate the exchange.

CoinGecko uses Trust Score, a rating algorithm evaluating the legitimacy of an exchange’s trading volume. Trust Score is calculated on a range of metrics such as liquidity, the scale of operations, cybersecurity score, and more. Binance’s Trust Score is 10. Only 10 out of more than 500 cryptocurrency platforms have a Trust Score of 10.

CoinMarketCap’s Exchange Score is based on the following factors:

• Web Traffic
• Average Liquidity & Volume
• the Confidence that the volume reported by an exchange is legitimate. Weights are assigned to the above-mentioned factors and a score from 0.0 to 10.0 is given to the Spot Exchange.

Binance’s Exchange Score is 9.9.

Nomics’ metric is called Impact Score – and represents an exchange’s influence on the price of cryptocurrencies it trades. The score is a combination of web traffic, volume, and other factors.

Binance’s Impact Score is a max. 10.

CryptoCompare has established the notion of Top-Tier volume whereby investors can segment the market into higher and lower-risk volumes (A is the best and E is the worst grade).

Here’s the current CyptoCompare’s classification of Bittrex in comparison with other exchanges:

Listing on Binance with our help

We can help you prepare for listing your token and managing liquidity on Binance and other exchanges. The usual process looks like this:

1. We set up a call to understand the phase of your project. The following points will be discussed:
   • Are you already listed on DEXes or CEXes?
   • What is the tokenomy of your project?
   • Do you have a listing strategy for your token?
2. We discuss the best possible liquidity strategy for your project.
3. If we agree to set up a partnership, we introduce you to verified managers of one or more exchanges (listing support).
4. After your project gets listed on an exchange, we help you build your markets on platforms.

Why do I need a market maker?

Managing a token startup is a real challenge. As a cryptocurrency project, you need to focus on building your products and services and leave liquidity to market makers.

A market maker will help you:

• deepen the liquidity on your token’s books and make them more stable – which helps mitigate the price fluctuations of your coin
• lower spreads between bids and asks so that the prices get fairer for investors; that reduces the cost of entering and exiting positions and encourages investors to trade your coin

In the 24/7 cryptocurrency markets, well-managed assets are supported by algorithmic market makers. They provide liquidity through market-making services, supported by fully automated software algorithms. Empirica’s liquidity products are reputable top-notch algorithmic market-making solutions. Check how our crypto market makers provide liquidity as a service. We are also a market maker on Binance.