The management teams of the exchanges in this category are heavily competent, but – it just happens that, for one reason or another, traders are not flocking to these platforms in the way that they flock to the other trading venues.
As such the issue at hand is the lack of what we call ‘free roaming liquidity.’
In the simplest terms, free roaming liquidity is a situation that occurs when users are fans of the actual exchange platform – ahead of any particular currency.
This is the case with the larger platforms, like Bittrex. The traders that populate Bittrex tend not to be fans of any one particular currency – but, more so the exchange itself. As such, an environment is established in which liquidity roams, freely, from one asset to another.
In contrast, this is not the case when it comes to the platforms in this lower tier.
There are not many traders in this market that exclusively conduct their trading activities on Cryptopia, or on Livecoin.
In fact for the majority of those that trade this market, logging on to Cryptopia is an action that they take only to trade a specific currency that isn’t available anywhere else.
This creates an obvious lack of free roaming liquidity.
Because of this we find that, on these lower tier exchanges, market making tactics do not have the same huge and impactful effect as they do on the larger platforms.
With this being the case, we find that developers have to do extra work to bring traders into their currency. We find that this extra work has to be conducted off exchange – which is out of our purview.
As such, listing on these lower tier platforms means that your project must already have a large enough pool of users that are fans of your currency, so that when listing is achieved, market making tactics can be employed in an effective way.
In short, on these lower tier exchanges, development teams are forced to work much harder but in return for much less revenue than they’d be able generate on a higher tiered platform.
This is an exchange based in New Zealand and is operated by a growing team of more than 50 individuals.
We place the Cryptopia platform in this category of lower tier exchanges due to the fact that they do not have the same pool of liquidity as the other exchanges that we work with.
The team at Cryptopia is very transparent and we have found that communication is very smooth and simple, as they tend to respond to our requests quite fast.
For an exchange that is still quite small in comparison with the alternatives, we feel that their workload is manageable and perhaps this is the reason why we are able to have such a strong and speedy line of communication with them.
Despite this, regardless of how responsive we have found the operators of Cryptopia to be – liquidity is still an issue. Cryptopia is not on the same level as Kucoin, or even HitBTC in this regard.
For this reason, we tend only to look toward Cryptopia when we find that a project isn’t suitable for the larger exchanges.
Additionally, they are quite flexible when it comes to their listing procedure provided that you, as developer, are not concealing anything that could tarnish their reputation.
We find that they are very willing to offer favourable listing terms when they are approached in the correct manner.
In short, Cryptopia is an okay exchange – it is useful to a development team that is desperate to appease their investors.
Although their levels of liquidity are quite low, we find it to be a venue on which consistent revenue can easily be achieved – but of course, not at the same level as can be achieved on the higher tier exchanges.
One of the only exchanges with a female CEO is Livecoin, headed by Svetlana Geller.
Livecoin is a great platform but, again, liquidity is somewhat of an issue here.
Liquidity aside, they have put together a finely tuned trading engine. In addition to this, their trading fees are incredibly low which is obviously very beneficial when conducting market making activity.
As far as listing goes – their process is perhaps the most straightforward out of all the exchanges, since they focus purely on the technical aspects of your token – as opposed to the amount of users you have, how flashy your marketing is and etc.
Despite the fact that some developers report facing difficult negotiation procedures when undergoing review, we cannot say the same.
It is always a pleasure to work with Livecoin. We have never faced any issues and this has been the case since 2015.
We find the Livecoin team to be very open, transparent and even willing to work with developers who have very little experience in this space.
However, we place Livecoin in this category of lower tier exchanges because – the most important thing when it comes to opening a trading pair on an exchange is the ability for a development team to draw large amounts of revenue on a continuous basis.
As mentioned above, Livecoin is not on the same level as the more prominent trading venues when it comes to liquidity.
In short, you will have to work harder to earn your keep.
Other than this, Livecoin is a competent exchange that we work with – especially when we have a client that is attempting to list a project that isn’t innovative, mind blowing or widely used.
For projects like this, Livecoin is the perfect fit.