The infrastructure of crypto listings has understood that there’s money to be made with regards to making ways to liquidity. To list an ICO on a known crypto exchange can cost anyplace between $1 – $3 million.
The application and entry fee on the Nasdaq Capital Market, for a listing of up to 15 million shares cost as little as $55,000 with yearly fees generally a similar amount to stay listed.
“The market price to list a crypto token on an exchange is $1 million for a reasonably regarded token, to $3 million for an opportunity to get quick liquidity,” explained the authors of the report.
Tokens turn out to be more alluring if purchasers know they can trade them effectively, which means the accomplishment of an ICO frequently comes down to getting the listing on an exchange.
The authors do disclaim that the research is based on sleuthing inside Telegram groups and private discussions with those up to date, however, there have been different rumblings somewhere else in the industry to propose that these figures are exact.
Business Insider revealed it had discovered crypto exchanges charging a $1 million for each ICO a month ago, while one altcoin developer disclosed to news.Bitcoin.com that they were cited a fee of $3.5 million for being integrated with a prevalent mobile wallet.
Keeping in mind the end goal to cover these astronomical fees, claims the report, new companies are overfunding their projects. That is prompt a few companies storing up 10 times more in funding.
Blockchain startups have raised more than $3 billion in ICOs this year as of now, contrasted and about $270 million in venture capital rounds, lending further credibility to the claims made in the report.
The exchanging managing with these ICOs has become fat off the proceeds. In 2017, Coinbase is accounted for to have made a $1 billion in profits and Binance upwards of $200 million. Advisers on the arrangements additionally take a cut, something close to 5 percent of the aggregate arrangement.
Right now, more than 98% of digital currency exchange trading happens on centralized exchange networks like Binance, Bitfinex, Okex, and Upbit.
But there is hope. Decentralized exchanges, for example, Bisq offer comparable services that centralized exchanges offer at a small amount of the price, however, are still in the beginning stages of development.