BUIP186: Mid-Tier Exchange Listing Fee

BUIPs
1

BUIP186: Mid-Tier Exchange Listing Fee
submitted by Singularity
date 28 Dec 2022

Motivation

For Nexa to be correctly perceived as a legitimate cryptocurrency, it is important that it is available to trade on an exchange that also has a reasonable level of legitimacy and trust. Many investors will be put off from getting involved in the cryptocurrency if they cannot access from an exchange that they trust.

Having Nexa on a mid-tier exchange will also expose Nexa to many more people than it currently is, especially if that exchange is also tracked on Coinmarketcap.com.

Over time, a larger exchange will also bring more volume to trading of Nexa allowing the price to become less volatile. It will also allow larger investors to enter Nexa without moving the market too much, thereby encouraging their participation.

Objectives

The objective of this BUIP is to provide funding to pay the exchange listing fee of a mid-tier exchange. If a market maker is required for listing (as if often the case for new exchange listings of smaller cryptocurrencies), this cost will be crowdfunded separately from the Nexa community.

A marketing campaign can be organised around the listing to maximise its impact, but the details of this are outside the scope of this proposal.

The exchange listing should happen in Q1 2023 after the Nexa Growth Plan has been funded and started.

Funding

Budget of a maximum of $50,000 to go entirely towards the exchange listing fee.

The elected BU officials: President, Secretary and Developer will jointly agree to this expenditure to make sure the exchange agreed upon is of a sufficient quality.

Expected Impact

  • A more mature market for Nexa trades.
  • More exposure of Nexa to investors, users and businesses.
  • Ability to purchase Nexa from a more established and less risky exchange.
  • Nexa will have a higher perceived legitimacy as a cryptocurrency.
2 Likes
2

It would be interesting to have some membership views on when B.U. should be actively persuing the listing of Nexa on a mid-tier exchange. Certainly, Exbitron has taken the heat out of the unsatisfactory situation where more and more people were trading OTC. Nexa has remained the top-ranked coin on the exchange for the first month and looks likely to continue at the time of writing. This augurs well for listing on a larger exchange.

Is this describing the case where market-maker fees involve amounts of nex? A major difference between Nexa and most other new coins is that issuance started from zero, so there was no developer or foundation holding at launch. This means any exchange should not have expectations of being handed a large amount for martket-making.

3

A market maker will require both NEX and a USD stablecoin to add liquidity to both sides of the market. This isn’t handled by the exchange itself. It is handled by a 3rd party MM service. The exchange makes nothing from the market making. They even often offer zero fee accounts specifically for this, so they potentially wouldn’t even make fees from it.

4

I definitely agree that a larger exchange should be considered in the short-mid term. Especially considering Exbitron having deposit and withdrawal issues already due to the high volume of NEXA. Nexa is currently nearing a 20M marketcap which is way too big for such exchange - al though CEXs are never 100% safe (not your keys not your crypto) it would also benefit the Nexa users to be able to store their coins on a more reputable exchange (Exbitron for instance went offline for 1-2 hours, very randomly a couple days ago)

5

–Begin Signed Message–
BUIP186: YES
–Begin Signature–
H8EXM+MLIpl2zgcH77O66H4xxC6830JstTaLhowXENoGSMVISuzeXrtZNw5Vkns0Z4yZ4xY7AND7yJTwC5cGpSU=
–End Signature–

6

Personally, I think that we should have a mid-tier exchange desperate to list us first. Why should we pay up to 50k so that they can subsequently make nice profits on the fees? One reason is to create unwarranted excitement and buzz – that is, pump and dump. So I want to wait on this… (but not voting yet you can change my mind :-)).

8

I don’t think listing on mid-tier is creating unwarranted excitement and buzz, why’d you call that unwarranted? I would say it’s part of growth - Nexa grew from a 2.5M cap to over 16M, and with that, Nexa should look for better exchanges. If not, and the community sees Nexa is not going to continue the current growth, then the actual chart imo will look like a pump and dump as many do believe (probably unwarranted) that the proposal will be aye, and hence, further development of growth / exchanges will continue.

Looking at the exchanges Nexa is now, they have a hard time living up to the investors expectations, take then in consideration that for many the desktop wallet is not preferable (due to various reasons) hence I think it’s good to have a reputable exchange where people could “store” their coins (NYKNYC, obviously) - ofc I understand other wallet developments are on the way.

I don’t really think any exchange is desperate to list Nexa, neither. In my country we say, just the sun comes up for free :wink:

Other than that, for instance a listing on MEXC is 35k, so a bit lower :slight_smile:

9

I think this is critical to the success of Nexa. Exbitron and Txbit only make it look… bad. You can’t really make exchanges desperate to list you anymore these days. They have a lot to choose from.

Nexa needs this to get actually get noticed and be perceived as serious.

Also consider that the marketing budget is a waste if there’s no exchange that people feel is reputable to invest in it on. I’ve encountered numerous people I’ve told Nexa about but they did not want to get into it because of the current exchanges.

1 Like
10

i can attest that i’ve (reluctantly) had to act as broker for friends & family, even for the crypto-savvy ones that just really want NEXA, but can’t/won’t use Exbitron (currently the majority of liquidity) due to the “pro-style” UX

imo, it would really be nice to have ANY exchange that supports “market” orders … which i believe offers a much “simpler” UX

1 Like