Hello everyone, a warm welcome to week 4 of this season's lesson series. The lesson taught by professor @reddileep discussed How to list your own Token on a Public Exchange. In this post, I will be responding to the assignment given.
Question 1
Define your idea of listing a Crypto token in a public Crypto Exchange and what its significance is.
Listing Crypto in Public Exchanges
The listing of crypto tokens on public exchanges brings about multiple benefits to the crypto token being listed. Benefits like accessibility to trading (exchanging with other crypto assets), exchange buying, and selling of the listed token, token growth and expansion, generation of trading liquidity, partnership, etc. These benefits further help the general acceptance of the listed token projects, which in turn leads to the valuation growth of the tokens.
Crypto tokens are listed in centralized or decentralized public exchanges, where the centralized exchange required a set of standards and fees to be met before a project's token can be listed on the centralized exchange. On the other hand, a decentralized exchange only requires a few standards to be satisfied before the token can be listed on the decentralized exchange.
To illustrate this, listing a token on a centralized exchange like Binance will require the following:
1- Application phase
The application step involves providing the required basic information about the project developers, the project, and the token.
2- Complete Detailed Information
This phase of the coin listing requirement involves providing detailed information about the token to the exchange platform. There is a 10 page Google doc that asks the detailed question about the token and the project.
After filling in the required detailed information, acknowledge the submission of the Google docs form on the complete detailed information page.
3- Application Submission
This is the last phase of the application, where the application will be reviewed by Binance based on the answer provided to the questions. If the review was successful, the candidate will be contacted for furtherance of the listing process.
Whereas, listing a token on decentralized exchanges like Pancakeswap, JustSwap, etc. will cost less and only requires importing the created token from the Blockchain wallet to the decentralized exchange platform.
Significance of Listing Token on Public Exchanges
Some of the significance of listing tokens on public exchanges includes:
1- Trading
Listing tokens on exchanges brings about the possibility of trading the listed token against other exchange-listed tokens based on the amount of generated and available liquidity. This greatly improves the valuations of the listed token, as IPOs, IDOs can be conducted through centralized and decentralized exchanges.
2- Buying and Selling of Tokens
Listing tokens on exchanges bring about accessible means to buy and sell the listed token easily using cryptos or fiats via Bank deposits.
3- Acceptance
Listing new project tokens on high trading volume exchanges like Binance results in overall acceptance of the newly listed token because of the requirements satisfied before listing on the Binance exchange. This greatly improves the market absorption and acceptance of the token.
4- Liquidity
Listing of the token on public exchanges also contributes to the overall generated liquidity of the listed token. Exchanges can generate liquidity through the listing, trading promotions, etc.
Question 2
Demonstrate how to prepare everything needed to list your newly created Crypto Token in a public exchange such as selecting an exchange and adding a few BNB coins to your MetaMask wallet to accomplish the gas fee. (If you already have some amount of BNB in your wallet, you don’t need to deposit again.)
Requirements for Listing Your Crypto Token
To list a crypto token on decentralized exchanges, there are certain elements required which include:
Creating a Token
Before listing a token, it is required that the token is created based on the blockchain of choice, using a compatible wallet. Like in the previous lesson, I created a token called BECK with the symbol BEK using Metamask wallet. I have a BEK token balance of 100,000 BEK.
Gas Fees
A gas fee is required when preparing to list the created token on exchanges. The gas fee is usually deducted from the Blockchain's native token balance stored in the corresponding wallet as previous balance or funding the wallet. the gas fee is important as it covers the cost of the transaction and energy consumption during the listing transaction. For this illustration, I have a token balance of 0.0234 BNB, which is sufficient to cover the gas fees required to list the BEK token on a decentralized exchange.
External Wallet
Lastly, an external wallet is required in preparing to list a created token on exchanges. The external wallet is used in distributing the created token to different wallets which helps the project and token creator understand how the token reacts when moved to a different platform. For this illustration, I chose Trust wallet. To access the wallet, visit trust wallet's official website and download the wallet software according to the corresponding operating system. I chose the android operating system.
Question 3
Demonstrate all the steps of listing your own Crypto Token in a Public Crypto Exchange. (Screenshots required)
Listing a Token on Public Exchange
To list a token on a decentralized public exchange, you need to access the created token's Contract address. For this illustration, I chose to use pancakeswap DEX.
To access the contract address, open the metamask wallet and click on activity. Then click on the contract development transaction.
Next, choose to view the transaction via Binance block explorer (BSCScan) by clicking on the Right pointing Arrow from the pop-up dialogue box.
On the explorer page, copied the contract address, which is the interacted with address.
The contract address is:
0x7ae5554ca14f058a71a9e6818bc1593cec7a85fc
With the obtained contract address, you can visit any decentralized exchange and import the token. For this illustration, I chose Pancakeswap DEX.
Next, visit pancakeswp's official website and click on Trade. Then click on Exchange
On the exchange page, click on connect wallet at the top right corner, and choose the wallet of choice. For this illustration, I chose Metamask wallet.
On the swap section, click on the drop-down menu to access the available token.
On the search menu, paste the copied contract address and click on Import.
Next, read the warning notice and check the I understand box, then click on import.
Next, the BEK token will be listed on the pancakeswap DEX.
Question 4
Demonstrate all the steps to bring half of your newly created Crypto Token into a Public Exchange (In addition to simply stating the steps, you should provide a clear explanation about each step)
Sending Tokens to Exchanges
To send half of the created BEK token to public decentralized exchange like Pancakeswap, the following steps should be followed:
First access the created token via metamask wallet and click on the send option.
Next, paste the copied contract address in the search box and choose the amount of the BEK token to be sent. For this illustration, the total amount of BEK token available is 100,000 BEK, sending half will imply sending 50,000 BEK tokens. Then click on Next.
From the transaction below, a transfer of 50,000 BEK token is initiated with an estimated gas fee of 0.00038445 BNB.
Next, confirm the on-chain transaction by clicking Confirm
With sufficient token balance to cover the gas fee, the send transaction will be successful with half of the created token (BEK token) sent to the public exchange, which in this illustration is pancakeswap.
The transaction hash is:
0x9051219af06e98c5071399094b44dbfb33c46a9ff9ba8048dcaf976ba061c234
On the DEX platform, the token will be available but would require liquidity before it can be exchanged with other tokens. The liquidity generation process requires an inflow of capital, which would be cost-effective.
On the exchange section of pancakeswap, search for the BEK token, the result shows the available amount of the BEK token, which is 50,000 BEK.
Question 5
Withdraw some of your own crypto Tokens into any other wallet such as Trust Wallet and MetaMask wallet. (Confirm the transaction through the relevant Block Explorer)
Withdrawing Created Token to Trust wallet
For this illustration, I chose Trust wallet. First download and install trust wallet, then open an account. To withdraw the created BEK token to Trust wallet:
Picture labeled 1
First, copy the contract address, then open trust wallet and click on the search menu on the top right corner.
Picture labeled 2
Next, paste the copied contract address and click on Add custom token.
Picture labeled 3
Next, select the network, which in this case is Binance smart chain, then paste the copied contract address. The token name, symbol, and decimal will fill automatically. Then, click Done.
Picture labeled 4
Next, the BEK token will appear in the list of assets in the trust wallet.
Picture labeled 5
To receive the BEK token to Trust wallet, select the added BEK token and click on receive.
Picture labeled 6
Next copy the available receiving address. The copied receiving address is:
0x1DC915937f54477a508a16E595975FDa0b1DB537
With the copied receiving address, the created BEK token can be sent from Metamask wallet to Trust wallet.
To do this, open the metamask wallet and access the created token. Next, click on send
Next, paste the copied receiving address in the search box and choose the amount of the BEK token to be sent. For this illustration, the total amount of BEK token available is 50,000 BEK, the amount to be sent is 20,000 BEK tokens. Then click on Next.
From the transaction below, a transfer of 20,000 BEK token from metamask wallet to Trust wallet is initiated with an estimated gas fee of 0.00038436 BNB.
Next, confirm the on-chain transaction by clicking Confirm
With sufficient token balance to cover the gas fee, the send transaction will be successful with 20,000 BEK token transferred from metamask wallet to Trust wallet.
The transaction hash is:
0xdcda09d4598de005a9548c032189f6472799f82be0ca41f94f95c981c0f871ca
Checking Trust wallet, the sent 20,000 BEK token was received.
Verifying the Transaction through Block Explorer
The above on-chain transactions can be verified using Binance smart chain block explorer. To do this, access the BEK token section of the metamask wallet and click on the send transaction
Next, choose to view the transaction via Binance block explorer (BSCScan) by clicking on the Right pointing Arrow from the pop-up dialogue box.
Next, the block explorer will display the transaction with the transaction status marked success and the contract address:
0x7ae5554ca14f058a71a9e6818bc1593cec7a85fc
Conclusion
Crypto tokens are listed in centralized or decentralized public exchanges, where the centralized exchange required a set of standards and fees to be met before a project's token can be listed on the centralized exchange. The listing of crypto tokens on public exchanges brings about multiple benefits to the crypto token being listed. Benefits like accessibility to trading (exchanging with other crypto assets), exchange buying and selling of the listed token, token growth, and expansion, generation of trading liquidity, partnership, etc.
Thank you professor @reddileep for this educative and insightful lesson.