Since Coinbase goes through howey tests and only cryptos that would pass it can be listed on the platform…
Does it mean the coins on CB will most likely pass nash’s legal review since they already pass the “test” in Coinbase?
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Likely, if you look at the base token listings for launch all of the coinbase ones except Stellar and ZCash are on Nash.
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So if I understood correctly, Coinbase is doing the Howey test and if negative - means token is not a security - they could list it on the exchange. As the NEX token is a security it does basically mean that NEX is not going to be listed on Coinbase.
@mtanev For an exchange to be able to list a security would mean they have the necessary license to do so. I believe securities would be one of the main source of trading volume in the near future on nash platform.
In this case, CB would need to apply and obtain the license to be able to trade securities. It’s the same for nash and one of their vision for trading securities.
Since adding ripple I am not convinced any more that they still use the howey test. I think they are going for the ask to be forgiven rather than ask for permission now.
That is true and why would coinbase add competition you don’t see them adding BNB either.
That doesn’t make sense. Exchanges earning money by charging fees and always pursuing to have a lot volume. They really don’t care listing a competitor.
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To my knowledge none of the exchanges that have their own token are listed on other exchanges that have there own token.
If you buy a utility token for exchange X on exchange Y you would probably move it to exchange X to test it out/get value from using it on their fees or staking. This means you would now be using exchange X to trade since you have a benefit for using it. So exchange Y has lost your fees.
Don’t mix purpose of token with the interest of the exchange having a lot of trading volume.
If you list an exchange token on your exchange you are “stealing” liquidity of the token which is normally traded on the exchange where the token belong to. As long as the trading is happening on your exchange you will collect the fees. So your exchange gained fees it normally won’t have.
In this perspective we should might ask: Would it make sense to list another exchange token and give them the publicity to your user base?
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Not sure if you are new…
but switcheo, APH, toktok has listed NEX security tokens to gain their volume 
This proves a lot
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That is what I am getting at 99% of the time it doesn’t make sense and won’t be worth it for the fees you may gain short term.
@MaoMao they are taking advantage of the fact that NEX isn’t trade able on it’s own platform at the moment. That is the only time it is worth it for other exchanges to list another exchange token.
Yes, and it is with this reason that not many exchanges can list NEX because it is a security token.
For this reason, exchanges that can list NEX will definitely do so because they will get extra volume.
It doesnt matter when NEX is available on nash exchange… NEX will not be taken away from switcheo etc, because it could still generate volume for them.
your argument earlier was
“no exchange would list other exchange tokens…”
and here are the list of exchanges that listed NEX … 
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Well, what is the other 1% you are thinking of?
I would differentiate in a short term and in a long term view:
short term:
Nash should think about adding BNB to their exchange. At the moment nearly everyone in the cryptospace know this exchange. This won’t cause a disadvantage in terms of publicity to their user base. Everyone who is here, decided that nash is better than Binance, or at least has the hope. With this move nash could gain market shares of the token of a direct competitor.
Binance is also moving to their own blockchain. Other projects are willing to switch with their tokens over to Binance Chain, as CZ is propagating (maybe just rumors, I don’t know). Integrating BNB would also allow to integrate all the other tokens from Binance Chain.
long term:
New people will join the cryptospace, who aren’t knowing anything about the environment. Even Binance will be new to them. When they join nash first and later on find out about Binance they maybe take a closer look to them. If they are impressed (for any reason I don’t know), they might turn their backs to nash and will join the Binance community.
Even though in this scenario nash has to think about implementing Binance Chain, because of tokens which are depending on their Blockchain. Just ignoring it and giving Binance the monopoly about this tokens wouldn’t be a smart move, I think.
Another thing to look on is that BNB will maybe evolve into a type of spending currency. People are willing to pay stuff with BNB. In this case it is getting attractive for nash to list BNB because of nash payment. The token is widely spread among many users. Therefore gaining volume for a trading pair with BNB will strength nashs’ ecosystem (trading volume, generated fees, …).
All I have written is compared to Binance, but some statements would also work with other exchange tokens. Also the legal perspective must be researched (Security, or not?).
Overall the decision of listing an exchange token is hard. There are several things to take an eye on. When thinking longer about this topic I’m sure there will be found more pro and con arguments. But from my view one of the strongest pro arguments is: gaining market shares from a competitor, no matter where the token belong to.
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I can’t really add anything new because your reasoning is really good. Also we have to take into consideration that we don’t know why certain exchanges are not listing others exchanges tokens. They could have various reasons for that:
- Strategic,
- Compliance,
- Demand,
- Technical Implementation
So from my perspective we can’t necessarily say that they don’t list exchange tokens, because they don’t list competitors’ tokens.
I never said that.
I think you are confusing what I said, NEX is different because you cannot trade it on it’s own platform, Once NEX platform is running I won’t expect it be delisted from the other exchanges but the question was is coinbase likely to add NEX and to that my answer is still unlikely. Also they are only listed on 2 dex’s and some none top 10 centralized exchange. DEX’s will list anything.
@Symiaq the 1% of the time is like now when NEX exchange isn’t up and running.
That is a really good point as BNB is turning into more of a currency with more than one use case so there is a good reason for other exchanges to list it. There is no reason for BNB to list other exchange tokens however.
- Strategic: this is what I have been trying to say it is a centralized exchange strategy to not list it’s competitors.
- Compliance: NEX is a security so for this reason it is unlikely to be listed on other exchanges since they won’t have the licenses to do so.
- Demand: there isn’t any, if I want to buy kucoin I will go to kucoin, if I want to buy BNB I go to binance.
- Technical Implementation: I think all the exchange tokens are ERC 20 or NEP 5, so if the exchange has worked out how to list ETH and NEO they would be able to list another exchange’s token. (BNB is moving over to it’s own chain soon so this could change in the future.)
So taking these four points into consideration, I would say there is a lack demand and strategic planing from the exchanges as the two key factors why one exchange won’t list another exchange’s token.
This is basically the main reason + strategic and deman (for now)
Presumably, if Nash gets a securities trading license, it can list any token.
BitMax just listed KuCoin Shares (KCS). So we have now at least one exchange that is listing a competitor’s exchange token.
Meaning most of the tokens in crypto space are utility and the token holders should not expect any profits holding the token? @canesin ?
The problem is not listing a competitor but the fact that exchange tokens are securities in Europe and US which are very important markets for us. The SEC did a very clear digital asset framework where it pointed out that if you create a market for your token it is a security, which was the last piece since exchange tokens already failed the Howey test. As they derive value from the exchange business which is centrally operated and developed.
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