Birdchain’s approach towards a new exchange

Once in a while, the “exchange question” pops up within our community chat, lingering until it is addressed and the community is properly reassured that this is not a forgotten question.

Today we decided to cover the most important arguments and give an explicit answer. Most of these points were already presented before, in different echo waves of this question.

Some context to this question — Birdchain gathered funds for development through an ICO that finished in May 2018, when Ethereum was traded at a value 5 times higher than today, exchange listing costs were 5 times lower and there were not much concerns about trading volume.

Three quarters later, the cryptocurrency market is still reluctant to recover, the amount of exchanges has grown exponentially, but so did the listing costs, trading volumes fell and most tokens survive on self-fueled market making, pressed by delisting threats of exchanges that need these volumes to survive.

But while these were hard 3 quarters for the market, we came a long way. It is true that the market constraints shaped the project thinner and slowed down our development pace. But, against the odds that killed most ICO projects, Birdchain is breathing and kicking.

We released a product, and the product is working. We show our face every fortnight live on YouTube, we have never hidden. We listen to our community, even if it is sometimes against our better judgement, unlocked the tokens and listed on a CEx, that unfortunately proved to be good only on paper.

Now, I ask you a question, what is the goal of listing in another exchange?

  • The token is “de facto” tradeable on DEx’s, and arguably tradeable on BitInka.
  • While listing on another CEx may be appealing, it will only appease the majority of the community if the listing happens on a top 10 Coin Market Cap ranked exchange, which is bound to be an expensive endeavor.
  • Listing on a CEx will not push the trading volumes, unless we fund market making efforts.
  • We can actually experience the opposite reaction, since we are splitting the trading volumes on various exchanges.
  • And if we will not consistently fund market making, we will face both FUD and delisting due to lack of trading volume.

Summing it up bluntly, the funds we gathered during ICO are less than half (to a quarter) of the listing cost of a CMC top 10 exchange, and just about the cost of an exchange somewhere in the 10 positions below that. Market making represents a fixed monthly cost, and the volume provided will not have a direct effect on your trade orders.

All this said, we DO want to list on another CEx. And this is because we understand the “brand trust” value of being listed on Coin Market Cap, and because it would be a plus to our community to have a more comfortable platform where to trade their BIRDs.

However, we are not rushing anywhere. We will be realistic, and avoid to create unrealistic expectations — we will list responsibly with our available funds, especially in these market conditions.

We are focused on developing the SMS feature (which is a complex task), on trying to list on iOS (which we need to handle with care, given Apple’s stance on crypto Apps), on thickening the App content, on general growth. That is what our sight and sweat are set on.

Our main focus is to deliver Birdchain, the App. Everything else will follow naturally.


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