Bitget Tightens Token Listing Requirements to Prevent Fraud
Date: 2024-10-10 Author: Henry Casey Categories: BUSINESS
According to a press release published by Bitget, the new criteria are aimed at preventing the listing of tokens with inflated valuations and questionable intentions. The new requirements apply to all projects wishing to list their tokens on the platform. Each project will undergo a rigorous review, including code security, regulatory compliance, and quality development of the token structure.
One of the main aspects of the new policy is the analysis of the project's tokenomics. Bitget pays special attention to the assessment of the token issue volume, their distribution, and the fully diluted valuation (FDV). Projects with an FDV exceeding 20 times the amount of funds raised will raise suspicions. For example, if a project has raised $5 million, its FDV should not exceed $100 million, which helps to avoid unreasonable inflated valuations.
Additionally, Bitget is focusing on the token unlock timeframe. If it is shorter than two years, it may indicate a lack of long-term commitment from the team, which in turn may lead to selling pressure and a decrease in the token price.
The exchange will also carefully examine the history of the development team and sources of funding. Projects backed by well-known institutions have a better chance of a successful listing, while lesser-known teams will undergo additional scrutiny. Any connection to previous fraudulent activities, such as Ponzi schemes or “rug pulls”, will immediately disqualify the project.
Tokens already listed on other exchanges will also undergo in-depth scrutiny, including analysis of blockchain data to identify possible signs of market manipulation. In the event of significant discrepancies between the trading volume and the FDV, the token may be flagged as suspicious.
According to Bitget’s Chief Legal Officer, Hong Ng, the new listing process is designed to ensure user safety and prevent risky projects from entering the exchange. Those projects that do not meet the established standards will not be able to be placed on the platform.
The new Bitget rules are aimed at increasing user confidence in the platform and minimizing the risks associated with fraud in the cryptocurrency sector.
