What is a listing review?
- Author
- CRYPTO PORT Editorial
- Published
- Updated
- Reading time
- 4 min
In short
A listing review is the assessment an exchange runs before it starts supporting a new asset. It means the asset cleared some bar, but passing is not an endorsement of its value or safety. What is examined, and how strictly, differs from one operator to another.
Key points
- An assessment run before support begins
- Covers issuer, technology, liquidity and legal fit
- Passing is not a guarantee of value or safety
- Criteria differ between operators
Definition
An exchange's internal process for checking a prospective asset's issuer, technical design, liquidity, and compliance with law and self-regulatory rules before listing it.
Reviews typically cover who the issuer is and how it is organised, whether the technical design has serious flaws, whether enough liquidity can be expected, and whether the asset fits the applicable law and industry self-regulation. In Japan, the process follows an industry-body framework.
Because listed assets have cleared some review, users are less likely to run into the obviously broken. That is a real benefit. But a review is only a judgement on what could be verified at the time — circumstances change after listing, and some assets are eventually delisted.
Whether a price will rise is not part of any review. The fact that an exchange supports an asset says nothing about its future. Listing announcements usually include a summary and specific cautions, so making a habit of reading them gives you more to work with.
Watch out for
- · A listing is not an endorsement of value or prospects
- · Assets that passed review can still be delisted later
- · Criteria differ by operator — check their published standards