listing a token on DEX

Token listing during bear market

The decision to list a token during a bear market is not an easy one and involves some risks. There are many cons, but there are also a few pros. We should consider a few factors, including the token’s specific characteristics and the project’s goals. Even in a bear market, there can be success stories, but it’s also a time when many projects struggle or fail. 

As market makers, projects often ask us for advice on listings in this market situation. Concerns about token projects relate to high listing fees on CEX exchanges, adverse market sentiment, and declining prices. Listing a token during this period might generate less excitement and attention than during a bull market. 

Is it worth listing a token or waiting for a change in market sentiment?

Aspects to consider when making a decision

Token listing is a time-consuming process, and market sentiment can change. However, the listing might be a strategic move as any bear market will finally end.  Additionally, projects having a unique value proposition for a community stand out even in a tough and prolonged market. Besides, your investors are waiting for it. It could give them an opportunity to buy the token at a lower price.

Is your product, community, and team ready for listing?

If the token has strong fundamentals, a clear use case, and a dedicated team working on the project, the listing may be the right decision for a token exposure. But there are some more considerations to keep in mind when making that decision:

  • Market-proven or mature product

    Projects that introduce a market-proven or mature product with breakthrough technology, unique features, or valuable partnerships, released to the community at least in the alpha or beta stage, may overcome market sentiment. While convincing investors with ideas in a bear market is hard, it may be easier with facts.

  • Strong community and user engagement

    The success of a project depends on multiple factors beyond its product or idea. Generating interest and awareness in a new token listing is more challenging during a bear market. Project teams may need to allocate additional marketing and community engagement resources to ensure a successful listing. Projects with active and engaged communities tend to be more resilient in harsh market conditions. An enthusiastic and committed user base can provide support and stability.

  • Long-term vision and proven roadmap progress

    Projects with a clear long-term vision and proven track record of advancing at the initial stages of their roadmap are often better equipped to weather market volatility. They demonstrate commitment to their goals and the growth of their ecosystem.

  • Regulatory Compliance

    This bear market also showed that many regulators are tightening their grip on crypto and present negative or at least cautious attitudes to blockchain projects. Be aware of the regulatory environment in your jurisdiction. Regulatory changes can significantly impact token listings, and ensuring compliance is vital.

How you can deal with high listing costs

Lowering listing fees for a cryptocurrency token on a centralized exchange (CEX) can be challenging, as crypto exchanges typically charge these fees as a source of revenue. However, there are some strategies and considerations that you can explore to reduce or negotiate listing fees potentially:

  • Choosing the right exchange

    Let’s start with one listing only during the bear market. Choosing the right exchange and engaging a good market maker can be an excellent test for your project. Will the listing increase the number of investors for your token? Will the market-making activities encourage the traders to bring organic volumes to your markets?

    Research and target exchanges that align with your project’s size and goals. Smaller – local or newer exchanges might offer more competitive listing fees compared to larger, well-established ones. On the other hand, smaller exchanges may have much fewer investors. Such exchanges may also not be popular among market makers, so finding one to build liquidity in your markets is harder. Ask your market maker for some advice regarding that matter.

  • Negotiating fees

    Some exchanges may be open to negotiating listing fees, especially if your project has unique features, a strong community, or a solid business case. It’s worth contacting their listing teams and discussing your project’s potential. Highlight what makes your project unique and how it can benefit the exchange. Exchanges are often interested in tokens that can attract new users or offer a competitive edge. If your token has clear use cases and can attract more trading activity, this can be a point of negotiation.

  • Listing on DEXes

    Consider listing your token on decentralized exchanges (DEXes) instead of or in addition to CEXes. DEXes often have no listing fees and provide an alternative way for users to access your token.

Carefully assess whether the benefits of listing on a particular exchange justify the associated costs. A successful listing should align with your project’s goals, user base, and overall strategy.

 It’s also important to remember that exchanges have policies and criteria for listing tokens, and each negotiation will vary. Consider seeking the assistance of market makers who have experience with exchange listings. They may introduce you to the exchange listing teams or provide insights to help negotiate.

Listing support – liquidity provision and stabilizing prices

Listing during a bear market may impact the liquidity of the token. Lower trading volumes and high price volatility can make it more challenging for investors to decide about new investments. When investors encounter empty order books, they are unlikely to return. Supporting the overall health of the token market by ensuring constant liquidity is crucial for smooth trading and price stability, especially in a bear market.

Empirica supports token projects in listing on centralized and decentralized exchanges

We are market makers and liquidity providers on most centralized and decentralized exchanges. We support token listings as one of the leading market makers there with a significant market share. We also improve liquidity long-term.

Find out how we can help your project by scheduling a call.