Why are there thousands of crypto coins on exchanges?
The Strategic Newb
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Open a crypto app and you'll see an endless row of new tokens next to Bitcoin and Ether. Some support a useful network. Others mainly run on a story, a community or the hope that the next buyer will pay more. Why do exchanges allow so many crypto coins?
The short answer: tokens are relatively easy to make, investors ask for new markets and exchanges often earn from trading activity. A listing can meet technical and legal conditions without the token being economically strong. Moreover, a token appearing on a decentralised exchange is something other than a coin that is admitted to a large central exchange after examination.
Updated on 29 September 2026. This article is general information, not investment advice. Supply and listing conditions vary per exchange and EU country.
Does “thousands of coins on exchanges” mean thousands on a single platform?
No. The total crypto offer is spread over central exchanges (CEXs), decentralised trade protocols (DEXs) and different country versions of the same service. Not every coin is with every provider. Even a large central exchange selects from the much larger range: Kraken shows on its listing page for example more than 600 tokens, with its own admission rules. A current market total is difficult to compare without defining whether you count inactive tokens, duplicates and tokens on DEXs. Kraken listing page.
| Route to Trade | Who usually decides? | What does appearing there mean? |
|---|---|---|
| Centralised exchange | The platform assesses and activates the market | The token complies with its applicable admission criteria according to that platform |
| Decentralised protocol | Depending on the design, a user can start a liquidity pool | Trade may arise without the same prior selection as on a central exchange |
| Aggregator or wallet | Shows existing markets of other parties | Visibility in an app is not always its own listing decision |
These differences are essential. A token may be negotiable anywhere without an EU regulated platform having assessed it. Ethereum: token standards · ESMA: MiCA rules for trading venues.
Reason 1: making a token has become much easier technically
Token standards such as ERC-20 give developers a common interface for transfer, balance and use with other applications. You don't need to build a completely new blockchain to create a marketable token. This lower technical threshold also helps to experiment legitimate projects. At the same time, almost every new story can get its own token, even if an existing currency could fulfil the same function. Ethereum documentation on ERC-20.
The number of tokens therefore says little about the number of useful networks. A new token may be a means of payment, an access pass, a governance tool, a game item, a stablecoin or a purely speculative cultural symbol. Having a use case is not a sufficient test of value: a working application can still have a token with excessive supply, weak demand or an unfavourable distribution.
Reason 2: demand for new coins brings customers and volume
Many investors seek new tokens before they are widely known. Anyone who offers a popular coin first can attract trading activity. In addition to the legal, compliance and safety assessment process, Coinbase mentions demand, trading volume, market capitalization, token holders and expected liquidity as factors for priority and timing. Kraken mentions, among other things, security, regulation, liquidity potential and market connection. Coinbase listing process · Kraken admission process.
There is a potential conflict of incentives here. An exchange can earn money when customers trade even if those customers lose money. That is a potential incentive conflict, not proof that a particular platform deliberately lists poor tokens. Platforms have different business models and review processes. Ask how they assess a token and when they review or remove it.
Reason 3: a listing gives a project reach and liquidity
For the project, a large listing means access to new buyers and a greater chance of active trade. For an investor, additional liquidity can facilitate the purchase and sale. But an order book can quickly dry up, especially after a hype peak or as a few large parties control the supply.
Trading volume alone does not answer a long-term investor’s key questions: how many tokens will be released later, who can sell, where demand comes from and who can change the rules. Alongside volume, examine the bid–ask spread, order-book depth, circulating supply, maximum or future supply and unlock schedule. The separate Strategic Newb articles discuss token unlocks, liquidity and slippage. token unlocks · liquidity and slippage
Do projects pay to get listed on an exchange?
A listing is not bought by definition. Coinbase says that no application or listing fee is charged to token publishers. Kraken claims that there is no listing fee and no paid accelerated assessment. Kraken does mention that optional integration or promotion services can be priced separately. The policy of these two exchanges cannot be applied to all other platforms without proof. Coinbase: listing fees · Kraken: listing request · Kraken: optional services.
Even without direct listing fees, a platform has reasons to add a market: customers want choice, activity can generate trading revenue and an attractive product range helps it compete. These incentives explain why popularity can influence a listing decision. They do not establish whether a particular coin suits your portfolio.
What does an exchange actually check?
A central platform can look at code, security, legal status, team, distribution and expected commercial value. Coinbase describes a test on legal, compliance and technical safety criteria, followed by a business assessment. Kraken says to assess its listing requests for security, regulatory position and liquidity potential. A risk and marketability assessment is not a prediction of future return. Coinbase · Kraken.
MiCA sets specific rules for European crypto trading platforms. Article 76 requires clear operating rules and a suitability assessment before a crypto-asset is admitted to trading, including technical reliability and risks of unlawful or fraudulent activity. This is a real obligation, but not a general legal requirement for every coin to generate minimum revenue or satisfy a universally defined useful application. ESMA, MiCA article 76
A MiCA whitepaper may be required to provide relevant information, but inclusion in the ESMA register is not EU regulatory approval. Whitepaper obligations differ for older admitted tokens, exemptions and tokens without an identifiable issuer. ESMA MiCA registry and explanation · ESMA Q&A over issuerless tokens
Why don't weak coins disappear right away?
A poor investment is not automatically a prohibited product. A token may initially serve a real purpose and later lose its users. An exchange must act within its rules and obligations when there are signs of manipulation, technical problems or a changed legal status, but a low price alone is not conclusive evidence of fraud. Conversely, a price can rise sharply without a sustainable project behind it.
Delisting also has consequences: customers must know what happens to their assets and how long they have to sell or withdraw. Ongoing review therefore deserves as much attention as the initial listing. Our earlier opinion article, “Why Crypto Exchanges Must Raise the Bar for Token Listings”, develops stricter standards proposed by The Strategic Newb. These are editorial proposals, not existing uniform legal requirements. ♪Why Crypto Exchanges Must Raise the Bar for Token Listings ♪
Review a listing in seven questions
- Which market is this? A centralised exchange, a DEX pool or merely an entry in a wallet?
- Which legal entity offers the trade? Check with an EU service the relevant ESMA data or your national supervisor.
- What does the token do? Explain the product and the necessary role of the token in one sentence.
- Who holds the supply? Look at concentration among founders, investors, the treasury and market makers.
- When will new supply be released? Read the unlock schedule and check whether it is legally or technically enforceable.
- Can you sell without a large price impact? Examine the spread, order-book depth and volume in the market you use.
- What changes after the listing? Follow product progress, warnings, contract changes and possible suspension.
These questions are an investigative framework, not a guarantee against loss. The joint European supervisors warn that even when MiCA crypto comes, risk remains and protection depends on the assets and service provider involved. EU Consumer Warning.
Conclusion: more listings mean more choice, not automatically more quality
There are so many crypto coins on exchanges because the supply of new tokens is large, traders are interested in new markets and platforms compete for that activity. The inclusion on a serious platform means that there has been an assessment process according to the rules applicable to that platform. It means not that the token is necessary, fair priced or suitable for you.
For European investors, MiCA helps to better control the provider and certain information. The next step remains your own investigation into the token itself, his supply, liquidity and real demand. A listing opens the trading door; it does not answer the investment question.
Frequently asked questions about crypto exchange listings
Can any cryptocurrency be placed on Coinbase or Kraken?
No. Both platforms describe their own application and assessment process. A token that is negotiable on a DEX does not receive an automatic permission at a central exchange. Coinbase · Kraken.
Does a listing mean a coin is safe?
No. A listing indicates that a market has been opened in accordance with the applicable platform rules. Price losses, unfavourable token allocation, liquidity shortage and fraud remain possible. EU supervisors.
Do exchanges make money on new coins?
Commercial activity can generate revenue, but a listing fee It's something else. Coinbase and Kraken say not to charge for their own listing assessment. Check the policy of a specific exchange before taking over claims about paid listings. Coinbase · Kraken.
Does MiCA require every coin to have a useful application?
No, there is no general EU test that evaluates each coin on a predefined use case. However, MiCA imposes requirements on trading venues and, in applicable cases, on a token. ESMA, article 76.
Why might a coin be delisted?
The reasons differ according to platform and case: for example, legal changes, technical or security problems, insufficient tradability or no longer meet platform conditions. Read the concrete message of the exchange; the decision does not automatically say that the project was fraud.
Sources and editorial note
Consulted: Ethereum over token standards, Coinbase listing policy, Kraken listing policy, MiCA Article 76 and ESMA's MiCA registry. The analysis of economic incentives and the seven research questions are editorial explanations. Platform numbers and listing policies can change.