Bitfinex listing – and why one needs a market maker to manage token liquidity there

Facts about Bitfinex exchange

Bitfinex was founded in 2012 in Hong Kong. Currently, the platform is registered in the British Virgin Islands. According to the information provided by Coingecko, as of September 2022, the exchange offers 182 coins and 443 trading pairs and is included in the top 10 crypto exchanges based on the trading volume.

Bitfinex has a remote corporate environment and its team unites experts in blockchain and crypto technologies from different corners of the world, including Europe, Asia, South and North America.

Why list on Bitfinex

Bitfinex is known for its serious criteria for tokens that will be approved for being listed on their platform.

To get approval as a candidate for being listed on the platform, a token project should fill in a special form offered by the exchange.

The Bitfinex assessment team always conducts a diligent analysis of the applications submitted by companies in order to offer their users only those tokens that will be of most interest to them. But this approach is a win-win game for projects: once listed, they can expect to see growing attention from the side of crypto investors and traders who rely on the expertise of the Bitfinex team.

One of the most important things when applying for listing on an exchange like Bitfinex is to come with a reputable market maker, that will take care of the liquidity of your coin from day 1.

Bitfinex’s 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, scale of operations, cybersecurity score, and more. Bitfinex’s Trust Score is a maximum 10 point. Only 2,7% out of more than 500 cryptocurrency platforms have Trust Score 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.

Bitfinex’s Exchange Score is 7.0 (8th place ranked by the Exchange Score at the moment of writing).

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

Bitfinex’s Impact Score is a high 7.27. What is also important, the second Nomics metric, called Transparency Rating is a high A-. Nomics explains the purpose of these scores as rating cryptocurrency exchanges by their willingness to provide auditable history.

Listing on Bitfinex with our help

We can support you on your way to Bitfinex listing and help you manage the liquidity on the platform. 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 digital currency?
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 a trading platform, we help you build your markets on platforms.

But why do I need a market maker on Bitfinex?

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 their market-making services, supported by fully automated software algorithms. Empirica’s liquidity products are reputable top-notch algorithmic market making solutions.