How to list your token on Binance
Getting a token listed on Binance is considered to be an uphill task which makes it a challenge for almost all token issuers to fulfill. It is the largest exchange as per trading volume and also based on the value of trades on the exchange. More than 1.2 million transactions happen on Binance every second. Considering the importance of Binance as an exchange and the impact that it can have on the popularity and growth of your token, it is not surprising that almost all token issuers desire to list on Binance.
The process of getting listed on Binance is based on strict screening and a process through which the issuers would be required to showcase the viability of the Token and their business model. While hundreds of applications for listing are received by Binance, only very few actually make the cut. A key part of the process is that the successful applicants normally have a reliable legal consultant like Empire Global who have years of experience with hundreds of clients to assist them during the process.
Binance runs a complete web of offerings which include the Binance Exchange in multiple locations across the globe, the Binance Decentralized Exchange and the Binance Academy which deals with teachings on cryptocurrency and its related issues. Binance also has a range of new offerings including a derivatives exchange and a lending service. All these services make Binance the undisputed leader of the sector. Binance, however, is continuously innovating and will remain a big draw for cryptocurrency enthusiasts also in the future. It launches new products and services at regular intervals and also encourages new cryptocurrency projects through an offering called the Binance Launchpad.
While Binance and its offerings are exciting and can merit a number of separate articles, this article will focus on listing on the Binance exchange which is the largest in volume and value and more than 1.4 million transactions are conducted every second on Binance worth millions of dollars.
For any cryptocurrency, listing on Binance is and should be the ultimate goal considering its global reach and the ability to ensure customers across borders. Token issuers who are not ready yet should still have the goal of listing on Binance sometime in the future.
Basic essentials towards listing on Binance
Listing on Binance is a complicated process and a number of cryptocurrencies see their applications rejected. In fact, out of the thousands of applicants who wish to be listed on Binance, very few are ever accepted to list on the exchange. The listing process involves multiple steps including listing on Binance DEX and the need to make changes to the project.
There are a few basics that have to be fulfilled by any cryptocurrency which expects to be listed on Binance. If these basics are in place, then half the job is already done. These basic essentials are a strong team for the project, tested technological infrastructure for the project, a functioning platform, and a legally compliant project.
A strong team for a cryptocurrency project generally indicates that the project has the knowledge base to progress ahead and has a degree of reliability in delivering what it promises. A team should consist of experts from all areas including blockchain technology experts, financial experts, software developers, marketing experts, and legal experts to name a few. Clients and the exchange look for successful completion history of projects for the team members which provides them an added assurance that a particular project will perform well.
The technology used by a project is also essential in determining its viability. A product based on tested technology that is already functional presents a better perspective about the project than any project which does not have a reliable technological base or is running on software still in beta or early development phases. Tried and tested technology ensures that the project is less likely to face technological hurdles which might hamper or cut short its development in the future.
A functioning platform for a project is considered as a major positive and provides the exchange with a much-needed assurance that tokens based on a functional platform are less likely to be considered as securities. It also provides potential token investors an assurance that their Tokens will have a definite utility in the future.
Last but not the least, Tokens which have been issued in compliance with the law and have not invited legal scrutiny for any violation is preferred. Exchanges aim to conduct their business in a legally compliant manner and any Token which violates laws is may hamper their business.
Steps on the path to listing on Binance
The process of listing on Binance can be divided into five key steps:
1. Initial consultation with Empire Global to understand the steps to be taken for the listing process
2. Preparing the application and arranging documentation
3. Understanding the necessary technological integration for the listing process
4. Necessary modification in the project to facilitate listing on Binance
5. Listing on Binance
Preliminary review and consultation for listing on Binance
The first step as we mentioned before begins with communication with Empire Global and discussions about how the process should move ahead. Empire Global seeks information about the Token and the platform on which it operates. Empire Global then provides it with the options for listing and how they should proceed to ensure success in the listing process. Any token which plans to list on Binance needs to undergo a preliminary review of the project with special emphasis on project viability and regular activity which are crucial for listing on Binance.
The initial checklist for the listing of the project includes a review of the functionality of the token and the project, a review of the team behind the project and the need for changes required to make the project ready for listing. Binance places emphasis on regular updates and communication about the progress of the project. For many projects, this may also involve making minor changes prior to listing, particularly if it does not comply with the initial parameters mentioned above.
Application and legal documentation for listing on Binance
As we move to the second step, the actual application needs to be filled for the project to be considered for listing on Binance. Key details that are sought at this stage include the name of the project, its website and a one-sentence pitch about the project. A link to the asset page on the Binance Chain for projects built on the Chain is required. Details of the project including team size, information about the applicant and the target of the project are also sought. A few key documents which have to be attached to the project include the whitepaper, image or link of the roadmap, current status of the project, the business model and the market assessment of the project consisting of the market opportunity and the potential user base.
In a nutshell for easy understanding the key questions to be replied are:
1. Project Summary
2. Project Name
3. Link to asset page on Binance Chain
4. The name and position of the person filling in the Application
5. A one-sentence pitch about the Project
6. The planned target or achievements of the project
7. The size of the team and a list of core members of the project team and their roles and responsibilities
8. Information about any project member being involved in other projects.
9. A clear statement of commitment of the team members and how they avoid conflict of interest.
10. Link of the Project Website and a link of the project’s whitepaper
11. A link or image of the roadmap
12. The current status as per the roadmap
13. The business model of the Project
14. The potential user base and market opportunity?
Empire Global will be closely involved in preparing the application and will provide guidance. Any necessary legal documentation will be acquired by Empire Global after a discussion with the token issuers. The key legal which is sought by Binance is a legal memo with an evaluation of the Token under the US security laws and comparison with recent cases dealt by the SEC.
When the documentation is complete and all conditions are met, the listing can finally take place. Binance, however, requires regular updates on the work being done on the project during the listing process and after the listing takes place to show its activity and viability.
Binance places special emphasis on the characteristics of the Token which is proposed to be listed on the exchange. Detailed information about the token and the token issuance process needs to be provided. Key details include the name, symbol and supply of the token and the primary use case of the token. Detailed information is required about the token allocation process, dates of allocation of the Token and its listing on other exchanges.
Considering that an ICO is a key event for a Token and a project and is frequently under legal scrutiny, it is perhaps not unusual that Binance seeks detailed information about the ICO and the manner in which it was conducted. Binance also does not limit itself to the ICO and also enquires about the post-ICO utilization of funds and the proposed usage of the funds in the future. This acts as an indication of the projects which do not have a viable business model or a plan for future growth.
The assistance in the application process commences with an evaluation of the project followed by on-call guidance to the CEO or founder who is required to complete the application on behalf of the Token issuers. We coordinate between the applicant and the exchange to ensure that there is regular communication about the progress of the project and the application. This is crucial since Binance emphasizes weekly updates on the progress of the Token.
The emphasis on technology for a viable project is also clearly seen in the application process. Binance seeks detailed information about technological innovations through the project and the presence of code repositories for access by the public. Transparent evaluation of the technology builds much-needed trust in the suitability of a project. Binance places very high emphasis on the release of weekly updates about the development of the technology and Empire Global assists in this process. Binance also wants projects to hold monthly or bi-monthly Ask me Anythings (AMAs) which enhances public scrutiny and promotes better projects.
The final part of the initial application process requires furnishing of information about current competitors and a comparison of the applicant project with them. This ensures that the project could be evaluated correctly based on developments in the sector.
Transparency and regular updates to a project are crucial and Empire Global will assist you in publishing regular updates during the token issuance and listing process. This process of regular updates has to be continued throughout the time when the listing application is in progress and even after listing to ensure the continued viability of the project.
Technical Integration for listing on Binance
The application would be followed by a preliminary assessment by the exchange which may highlight any technological hurdles in the listing or integration process or the need for any further legal documentation. The support of the technical team is necessary to ensure that any required technological modifications are put in place for the listing process.
Considering that Binance places special emphasis on listing on the Binance DEX for projects not yet listed on the exchange, a parallel chain on Binance Chain or migration to Binance Chain might be required for the projects. This may be completed through migration or a swap plan for existing Tokens or a buildup using the Binance chain for new tokens.
Technological modification for the listing process
Binance places special emphasis on the integration of every proposed project which is planned to be listed on the Binance Chain and listing on the Binance Decentralized Exchange called Binance DEX prior to its listing on Binance. This is being done to promote acceptance of the in-house token BNB. Integration on Binance DEX is only possible after a change of the token to be listed into a BEP-2 Compatible Token. For existing tokens, this can be done through the creation of a parallel chain. For proposed projects, it can be done through the creation of the new project on the Binance Chain itself. Considering that it may be simpler and more cost-efficient for a new project, we request you to get in touch with Empire Global at the earliest if you ever plan to list on Binance with a token. Under ideal circumstances, the process of listing takes around 14–28 days.
Binance and Binance DEX belong to the same Binance ecosystem. While Binance is the well-known cryptocurrency exchange, Binance DEX is the new entrant which provides an opportunity for new entrants to list as it is based on a decentralized model where the community takes the major decisions on listing in the exchange and there is no centralized decision making.
Listing on Binance DEX, however, requires the adoption of new technology by Binance based on a new Blockchain and requires the issuance of a BEP-2 compatible token. It was introduced to enhance the popularity of the BNB, the token issued by Binance. To overcome this hurdle of accepting a new technology for a pre-existing project, Binance has provided the possibility of the creation of a second chain with BEP-2 Tokens. For new projects, it is much simpler and if a project aims to be listed on Binance it is recommended to be issued on the Binance Chain with a BEP-2 Token. Empire Global will assist both new and old players in listing on Binance DEX.
The importance of Binance DEX listing can be summarized in four key points.
First, it is essential that you are listed on Binance DEX before listing on the main exchange.
Second, Binance Chain is the preferred blockchain for listing on Binance.
Third, new tokens which plan to list on Binance are recommended to be issued on the Binance Chain with BEP-2 Compatible Tokens
Fourth, existing projects need not worry as listing through a second chain is possible. Get in touch with Empire Global and receive complete guidance about this process.
The ongoing process for integration with the Binance Chain is also under close scrutiny by Empire Global which ensures that the project is implemented correctly. This is important since listing on Binance DEX is the key step to ultimately listing on Binance.
After listing on Binance DEX, the Token would then be considered for listing on Binance and this will be done through an internal decision-making process which would evaluate the documentation, the viability and status of the project, the reputation of the backers, the legal compatibility of the token, the response to the Token from regulators and public and its status of listing on Binance DEX.
To assist future clients who will be willing to list on Binance and ensure that they have continued success in the process, Empire Global has released a webinar with in-depth guidance on the listing process for Binance which is available on YouTube https://www.youtube.com/watch?v=ri0GzUhAR-U