Why do trading platforms pay attention to projects with a strong community and can a coin become successful only thanks to "HYIP"
In many cases, the price of tokens rises sharply after listing. For example, over the past few months, the Binance crypto exchange added a number of digital assets, which then went up significantly. For example, the DAR token has risen in price by 72,900%, the Beta Finance price has increased by 6500%, the LAZIO token price has increased by 2280%, and the dYdX decentralized exchange token has risen in price by 1100%.
Binance CEO Changpeng Zhao has revealed the main condition for listing new tokens on the trading platform. According to Zhao, for the coin to start trading on the crypto exchange, it must have a large number of users.
Zhao added that Binance also takes into account other project metrics, such as the number of active addresses on the blockchain, audience on social networks, and regular updates on the technical part of the project. In June, the head of the exchange explained that the large number of users reflects the real value of the project. This is one of the main indicators of value that is easy to measure, Zhao noted. He also recommended that developers include user statistics when applying for a listing.
The topplabs.org experts explained on what basis it is necessary to select tokens for investment, which in the future will be traded on large exchanges.
New ideas
A promising project for the market is, first of all, the availability of new ideas, says Artem Deev, head of the analytical department at AMarkets. According to him, such decisions provide a clear answer to specific needs of people or their preferences. In addition to novelty, an attractive project for investment must be scalable (have a margin of growth) and easy to use, the analyst added.
When selecting coins, it is important to understand its prospects for the future, Deev explained. In his opinion, before investing, it is necessary to clearly predict how widely this or that asset can be used and who may be interested in it from the point of view of technology.
Strong community
Projects with a large and strong community, which Changpeng Zhao spoke about, are usually in plain sight, so one of the first can get to large crypto-exchanges, explained Pavel Shkitin, CEO of the Nominex cryptocurrency exchange.
As an example, the expert cited a recent story that happened on Twitter of the head of Binance. Zhao asked his followers on social media which coin should be added to the trading platform. One of the subscribers offered to list the token of the TON (The Open Network) project on Binance. More than 3 thousand users have already supported the proposal. Shkitin also added that the TON project community has grown to 120 thousand people in two months.
Other factors
To fully evaluate the project and identify its prospects for possible listings on large exchanges, you must first of all familiarize yourself with its White paper, advised Shkitin. Then he recommended to closely study social networks and chats dedicated to the project. Special attention should be paid to what its users say about the project, the expert believes.
It is also worth familiarizing yourself with the structure of the blockchain and its features, the emission of altcoins and the roadmap for the development of the project, says Shkitin. Before investing in a project token, the expert advised to talk to its developers at AMA sessions (Ask Me Anything).
What does "HYIP" solve
Investing in projects that are already on everyone's lips and actively continue to "hype" is a risky strategy, the head of the analytical department of AMarkets is sure. He explained that in such cases, the growth of tokens is stimulated by various manipulations.
On the one hand, it is the active community of traders that is the determining factor when listing new coins on large crypto-exchanges, says the CEO of the Nominex cryptocurrency exchange. However, not every coin that is on the "hype" is able to pass the strict compliance of the trading platform, added Shkitin.
Most of the "meme" cryptocurrencies are dangerous because they do not have any infrastructure or at least plans for the development of the technical part, the expert noted.
“The interest in such coins is explained only by the speculative component, so long-term investment in such assets is doubtful,” explained Shkitin.