The process of obtaining a token on a stock exchange is one of the most opaque aspects of the nascent cryptocurrency market.

Jonathan "JZ" Zeppettini, who manages the registrations for Decred, is familiar with the process. In an exclusive interview, he spoke with The Block to explain the progress of the last transaction on Vertbase, which will allow US-based investors to buy crypto fiat for the first time.

Zeppettini said the project has excellent relations with the exchanges on which it is currently registered, including Vertbase. But he said that all the commitments were not working. "Last year, I spent a lot of time with crypto to crypto exchanges and that was really a headache," Zeppettini said in a phone interview.

He noted that the process of obtaining a token on an encrypted stock market is much less transparent than on the process of listing a company. "You know pretty much what you're going to pay," he said, referring to the Nasdaq and New York Stock Exchange stock markets, both of which describe the structure of their listing rights on their website. . For reference, the listing fees on the New York Stock Exchange may be as high as $ 500,000, compared to a maximum of $ 155,000 set by the Nasdaq.

"The biggest registration fee that we asked for was totally crazy," Zeppettini said. "It was for an exchange that still has not been launched. The exchange itself does not exist. But they asked us for $ 3 million to be one of the first projects listed at launch. "

Richard Johnson, a market structure specialist at Greenwich Associates, said the high price tags for cryptographic trading listings illustrate the disproportionate influence of companies on the market.

"That tells us two things: first, cryptographic exchanges have significant market power; and secondly, these coin issuers must expect to receive significant value to pay for those fees, "Johnson said. "But we found a triple market capitalization of coins when announcing a major listing. So it's sort of a rational decision for coin issuers. It's also a sign of the "wild" nature of the market – I imagine regulators are interested in this practice. "

As reported by Bloomberg, Ripple offered to lend Coinbase $ 100 million worth of coins to allow users to exchange crypto. In addition, a Ripple executive offered Gemini $ 1 million to XRP. For a project like Decred, which has not led an ICO, it is virtually impossible to pay this type of fee, says Zeppettini.

"What I'm saying fundamentally is that Decred is an issue of equity," he said. "We are therefore willing to pay reasonable registration fees and reflect the actual costs of integration. If an exchange tells me that we're going to have to put a developer on that, it's going to take 20 hours of work, here's what it's going to cost, we have to score, we have compliance costs and what not. If they set their cost structure and if I think it should be presented to our stakeholders, then we can vote on it. But in most cases, these are random numbers that come out of the air. "

Nevertheless, not all exchanges charge for projects to register on their site. Binance, for example, did not charge Decred for registration. An insider said the company did not charge a registration fee for the projects it considered the best in its class. In addition, a spokesperson for Coinbase said he did not charge a registration fee. "All registration decisions are made on the welfare of the asset and not on the expected income," the spokesman said.