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How exchange listings affect cryptocurrency prices | Brave New Coin

In 2017, hundreds of new digital tokens emerged onto the scene thanks to a booming ICO market. However, many of these new digital tokens and currencies never get in front of crypto investors or near the public eye because they fail to get listed on the major digital asset exchanges.

Without the support of major exchanges, buying and selling a digital asset becomes more challenging. Hence, there is a clear correlation between the success of a cryptocurrency and the number and quality of exchange listings it secures.

The effect of exchange listings and delistings on prices
The positive effect of being listed on a popular exchange has been quite substantial for altcoins and newly-issued ICO tokens as it not only provides the digital asset with a certain level of industry approval but it also allows a much larger investor base to invest in it. Naturally, a listing on a major international digital currency exchange usually results in a price boost for the token.

Aside from being listed on international cryptocurrency exchanges, a listing on a popular regional exchange can also have a profound impact as it allows local investors to invest and withdraw profits using their own local fiat currency.

An excellent example of this would be when the Lisk (LSK) token was listed on the Japanese exchange bitFlyer in late January, at which point the price of the token jumped by over 65 percent in less than an hour. After strong volatility, LSK managed to close the day around 25 percent higher despite an overall downward trend in cryptocurrencies in that time period.

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How exchange listings affect cryptocurrency prices » Brave New Coin.