As a seasoned crypto investor with battle scars from the 2017 bull run and the subsequent bear market, I welcome Bitget’s recent move to tighten their token listing requirements. The crypto world has seen its fair share of scams and fraudulent projects, and stricter regulations can only serve to protect investors like myself.
As an analyst, I’m sharing that in an effort to enhance security and foster trust, the Seychelles-based cryptocurrency exchange Bitget has recently unveiled a substantial overhaul of its token listing standards. This update, implemented on October 10, enforces more stringent conditions to minimize the risk of scams and maintain the credibility of the listed tokens.
As a prominent cryptocurrency exchange by trading volume, Bitget manages over $3.4 billion worth of user assets and facilitates trades valued at more than $1.5 billion daily, as indicated by CoinMarketCap and DefiLlama. These recent adjustments underscore growing worries in the crypto community about deceptive projects and highlight the importance of tougher regulations to address this issue.
Under the revised listing guidelines, every proposal’s business model and the creators’ professional profiles are subject to a comprehensive examination. Moreover, proposals now need to fulfill several essential conditions such as Fully Diluted Valuation (FDV), past development and funding records, well-structured business plans, lock-up periods, token distribution schemes, and consistent social media interaction.
Bitget Enforces 20x FDV Limit
Bitget has made changes to its listing procedure by emphasizing token economics more. Now, they closely scrutinize the token supply, distribution, and purpose to promote balanced expansion and fairness. A crucial factor is assessing a project’s Total Fully Diluted Valuation (TFDV), which calculates the overall value of the token supply. Bitget has established a threshold, mandating that the TFDV should not exceed 20 times the amount collected during fundraising.
As an analyst, I advocate for a balance in the relationship between funds raised and Fair Diluted Valuation (FDV). Ideally, it’s prudent to ensure that the FDV doesn’t surpass a multiple of 20 times the amount collected. This guideline is put in place to prevent misleading valuations for investors, ensuring a more accurate representation of the project’s worth.
Bitget examines tokens whose lock-up durations are shorter than two years as well. A shorter lock-up period could signal less long-term commitment from the project team, possibly leading to early sell-offs and price declines. To foster a more consistent and dependable trading atmosphere, Bitget encourages longer token lock-up periods.
Bitget Intensifies Team Vetting
As an analyst, I’m highlighting a shift in Bitget’s approach: we’re intensifying our investigations into project teams, focusing particularly on conducting comprehensive background checks for team members. The purpose behind these checks is to identify any links to fraudulent practices, misleading investors, or illegal activities. Our Chief Legal Officer, Hon Ng, underscores the significance of safeguarding users who invest their time in submitting registration documents. This initiative underscores Bitget’s dedication to prioritizing user safety and security.
For tokens currently listed on other platforms, Bitget will carry out extra assessments, concentrating primarily on the safety of smart contracts and token distribution patterns. Projects with a team controlling more than half (50%) or the issuer holding over 20% of the tokens are considered high-risk and could potentially be denied listing.
In 2024, an interesting instance arose with Simpson-themed tokens, where control was disguised by distributing tokens across various accounts instead of one central location. However, Bitget discovered this centralization, leading to the project’s omission from their platform.
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2024-10-10 15:17