Blockchain and Cryptocurrency Intermediate - Listing a Crypto Token in A Public Crypto Exchange and Its Significance
When it comes to the creation of a crypto token, one of the main aims is to ensure the successful listing on a public crypto exchange where it can be traded for other cryptocurrencies or stable coins. For instance, when a crypto token is created on the binance smart chain, one of the main aims is to list it on a public crypto decentralized exchange like the pancakeswap DEX which is much easier than a centralized exchange. When a token is listed on the pancakeswap DEX, it can be traded for BNB, BUSD and vice versa. When it comes to listing a cryptocurrency in a public exchange like a decentralized crypto exchange, there are factors that must be considered even before the crypto token is created.
The creation of a crypto token starts with the idea… The creator has an idea of the project and what he wants to achieve with the crypto token. After that, the decision on the blockchain to build on will be made. This is very important stage in the token creation process as the blockchain the crypto token is built determines the gas fees to be paid on each transactions on the blockchain and also can facilitate the success of the listing on a public exchange.
A decentralized exchange like panacakeswap is public exchange and open source protocol that allow users to swap between different binance smart chain tokens without any third parties and also gives users full control of their funds and their transactions. Even though centralized exchanges is more popular in the crypto space, decentralized exchanges have achieved a lot of growth in recent times and more and more users are beginning to take advantage of decentralized exchanges such as security, low transaction fees, faster transactions and more.
The great thing about open source decentralized exchanges like pancakeswap is that token creators can directly list their tokens on pancakeswap in just a few steps without having to go through different processes like listing on centralized exchanges. To do this, the token creator needs to connect his BSC supported wallet like metamask wallet or trustwallet to the public exchange like pancakeswap. Next is to add liquidity pool tokens by importing the created tokens by copying and pasting the token contract address in pancakeswap.
Next, the token will be added with the pair users will be able to swap the tokens for. The common pair is with BNB or BUSD or USDT. After that, the token creator will then supply a particular amount of the created token and also the other pair such as BNB or BUSD. The ratio you supply will determine the price of the token at the given ratio. Once that is done, the token will be successfully listed on pancakeswap which is one of the top public crypto exchanges on the binance smart chain network with lots of active users.
The significance
The main significance of listing a token in a public crypto exchange is that it allows other people who believe in the idea and vision of the project to buy the token and benefit from the project when the token gains more value as the project continues to grow.
When a token is listed on a public crypto exchange, it makes it possible for users to buy the token and make of the use cases of the token.
It makes it possible for the public to acquire the tokens and make use of it as intended by the project/token creator
It allows the token to gain value due to trading activities. As more and more people who believe in the token buy the token from the public exchange, the token gains value over time.
It facilitates adoption of the project and the purpose for which the token was created.
