Can you believe that there are over 13,000 cryptocurrencies on the market, with 1,000 new ones emerging monthly. It’s no surprise that most of them don’t live long, as it takes a lot of effort to make a project successful. This journey consists of many steps: developing token/coin architecture and utility, creating the nodes and consensus mechanism, making the project recognizable, and growing its community (among other equally important activities).
Can a white-label software provider help a coin issuer make this process a little easier and more cost-effective? Scalable Solutions can.
Build Your Own Exchange
Yes, you’ve heard that right. From our experience, we know how expensive and difficult it is to list your coin or token on third-party exchanges. For small exchanges, the listing fee can vary from about $6,000 – $30,000, second-tier exchanges charge $60,000 – $300,000 and top tier exchanges might charge $1 – $2,5m. So, in some cases, it is considerably cheaper to establish a trading ecosystem with the help of a white-label software provider. Let’s go through the benefits of having your own exchange.
Benefits of Having an Exchange for Coin/Token Owners
Set up your token distribution channel to grow the community around it
If you already have a community, it’s much easier to grow and strengthen it around your exchange, rather than disparate channels.
Gain an additional income channel
Usually, crypto exchanges make money off different fees, such as withdrawal, deposit, transaction, and trading fees. On your exchange, you decide on the fee size and structure. So, those fees can create a major source of income for coin or token owners.
Open up new revenue streams by listing other tokens/coins on your exchange
As you are the owner of the exchange, it’s your turn to charge fees for listing new tokens and coins. Use this income to invest in the development of your projects.
Incentivize users to trade with Trading Contests
One of the marketing tools that the Scalable platform can offer to coin or token issuers is a Trading Contests feature. It works like this: an exchange announces a trading contest on a particular coin/token and the user who trades the most, wins. Trading competitions direct attention to the coin/token, help it gain liquidity and stimulate its purchase.
Draw attention to your project with the Staking Tool
Another marketing feature that Scalable’s white-label platform offers is the Staking Program Tool; it helps attract the users’ attention to the coin/token as a chance to earn passive income. Also, it stimulates its purchases and generates more liquidity.
Note that this type of staking differs from staking in DeFi. Staking in DeFi is the act of locking your cryptocurrency in order to participate in a Proof-Of-Stake consensus mechanism. Usually, users get rewards for it. Staking in Scalable’s platform looks like this: the rewards for staking a coin/token come from an allocated budget that is distributed among the users staking the coin/token based on the staking programs rules.
Both Trading Competitions and the Staking Tool can bring benefits to the exchange owner, as other coins and tokens can use them for marketing purposes.
Build trust in your community
Issuers of new coins/tokens can often face uncertainty, distrust, and FUD from the crypto community. It’s no surprise, considering the volume of rug pulls and other scams among young projects. Your own trading ecosystem will highlight your project from the competition, show that you mean business, and help you build users’ loyalty.
Closing Thoughts
It’s challenging to create a cryptocurrency but what’s even more challenging is attaining user demand for it. Many coin/token issuers see listings on third-party exchanges as their main marketing strategy, but our expertise shows that sometimes developing and operating an exchange can be considerably more beneficial and cost-effective.
Sounds interesting to you? Get in touch with our team and let’s discuss your case, so you can benefit from Scalable’s expertise to move forward with your project.
