WHOA, hello classic economics and true capitalism. When you get strong demand and infuse capitalism to listing cryptocurrencies on reputable exchanges you get………wild exorbitant (?) pricing. In order to get liquidity, security (no no hacks) AND credibility for new initial coin offerings (ICOs) the better exchanges are charging anywhere from $50K to $1M (yup, $1M) to list. Oh its good to be a crypto exchange right now. Just like any traditional stock exchange some have more “cred” and liquidity than others and since the tokens issued by companies need both………fees go up. I mean, would you want your tokens (or stock) listed on the NYSE or Fred’s Crypto Exchange in Fargo, North Dakota (duh)? Of course with regulations coming left and right in this sector the quality of ICO’s are also getting better and will pay higher fees. Like I said, its good to be a crypto exchange right now. Boy, back on the trading floors if I made a market $50K bid and $1M offered the exchange police would lock me up.
(Bill Taylor/Managing Editor)
“LONDON — Cryptocurrency exchanges are charging up to $1 million to list initial coin offerings on their platforms, according to multiple industry sources.
Around half a dozen market participants, from investors to CEOs of companies with their own coins, told Business Insider that some exchanges are charging anywhere between $50,000 to $1 million to get their tokens listed.
A $1 million listing charge is higher than the cost to list on most stock exchanges, the mainstream equivalent, and one ICO advisor told BI the charges were “too much.” The costs reflect the current power imbalance between exchanges and crypto projects.”
The people who spoke to Business Insider, both on and off the record, declined to name the exchanges charging high fees for fear of falling foul of them. Exchanges wield huge power in the crypto market as access to larger ones can mean the difference between success and failure for many of projects…”