About Lykke's Updated Listing and Delisting Policy
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Since the emergence of the first cryptocurrency more than ten years ago, new and new projects have been appearing on the market offering new blockchains and cryptocurrencies. Behind the crypto movement lies the idea of decentralization, the idea of peer empowerment and trustless transactions. The range of issues that crypto projects address is truly infinite: from transaction registration optimization to real estate to governance and much more. Lots of those ideas are indeed long-sighted and visionary. Some of them take off and others, maybe because of being too ahead of their time, do not succeed, just like in the traditional business.
The growth of the crypto movement resulted in the appearance of thousands of new cryptocurrencies. Many are utility tokens, others are potentially securities. The choice is enormous. If in the early times, speculation would make newborn projects rise fast and get listed at crypto exchanges, at the current phase, the market is becoming highly competitive.
During the gold rush age of crypto, 2017-2018, lots of assets were listed at Lykke Wallet crypto exchange. We believe that eventually, everything will be tokenized: workers’ time, supermarket discounts, real estate, etc. Giving nascent projects a marketplace for their assets was an important element of our listing policy during that phase of the crypto movement evolution. However, with the market maturing, the needs and priorities change.
Recently, we have updated the Lykke Wallet listing and delisting policy in accordance with our current focus. Our priority has always been creating a level playing field for cryptocurrency trading for all kinds of users. On many cryptocurrency trading venues, the trading conditions depend on the volume which creates unequal conditions for retail traders. Lykke’s goal is to democratize finance, and we have built a fully functional marketplace with the most cost-efficient trading conditions. Cost-efficient conditions means zero trading fees and low spreads.
To maintain these conditions, the listed assets have to meet certain requirements. Our users come first, and it appears that lots of the assets we had listed enjoyed very little interest from our traders and investors. Little interest translates into poor order books and low liquidity. If an asset is illiquid, we cannot maintain the necessary conditions for cost-efficient trading. Even if the fee is zero, when the asset is illiquid, the buy-sell spread grows high, and trading becomes economically not feasible.
The fact that many listed assets awoke little interest from our users made us modify Lykke Listing Rules. During the past more than a year, we have been consistently delisting illiquid assets and unsuccessful projects. Some of these delistings are just a temporary solution until the correspondent assets gain more liquidity. Once the interest towards them grows again, they can easily be newly enabled at Lykke Wallet. For some other cryptocurrencies, the number of fiat pairs has been reduced which resulted in tightening of the order books of the remaining pairs. The selected assets that we have maintained have to maintain the standards we require for the listing.
Since our users demonstrated interest in more consolidated assets rather than in nascent projects, our listing criteria have also changed. During the past year, we have concentrated on listing such top assets as the cryptocurrencies of Chainlink, Uniswap, Tezos, Cardano, Polkadot. Other popular assets are currently in the pipeline. With the updated listing and delisting policy we strive to create and maintain the conditions for cost-efficient trading of the selected assets. Therefore, our users can count on zero fees, low spreads and a continuously growing liquidity. Get registered if you don’t have an account yet or enjoy trading and spread the word!