There are many centralized exchanges that are charging high fees to list the ICOs. While Initial Coin Offerings are a hot commodity these days, many wonder the justification of such exorbitant charges.
The creator of Ethereum, Vitalik Buterin, has indicated that some centralized exchanges hold immense power when it is a question of crypto tokens. These trading exchanges have the ability to make a coin successful or even ensure its downfall.
Buterin also explained that these centralized exchanges often charge a listing fee between a whopping 10 to 15 million dollars, which is quite crazy. Although not every crypto exchange charge that much, listing fees tend to be incredibly high, particularly for those virtual coins, which are just being launched in the market.
Such high fees to list an ICO are a symbol of a power imbalance between cryptocurrency exchanges and cryptocurrency firms. The silver lining is that all the exchanges do not charge a fee for listing.
However, startup businesses should make sure that they adhere to the financial needs of the said exchange. On the flip side, there are also some crypto exchanges that will only list ICOs on the basis of the reliability of a project as well as its digital token, Brave New Coin reported.
Necessity For ICO Listing
Despite the issue of costly fees, it is necessary for listings on exchanges to ensure that investors can access the required liquidity to trade fast as well as make a quick profit. If an ICO token is not listed on an exchange it can be as good as being dead.
To put it simply, if a crypto firm decides to list their ICO token on a second-tier exchange, it may not enjoy the same kind of access to trade, which the coins listed in a tier-one exchange have. While some investors who purchased the token may hold them for a longer time period and even for several months to see the listing happening, others may not like to do so, according to Finance Magnates.
The post Some Crypto Exchanges Charge Exorbitant Fees To List ICO appeared first on OWLT Market.
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