As a seasoned analyst with over two decades of experience in the ever-evolving world of finance and technology, I find Bitget’s latest moves to be both refreshing and commendable. The new stringent listing criteria are a much-needed step towards mitigating risks for users in the crypto space, where scams and exit strategies have unfortunately become all too common.
Bitget is enforcing updated policies by requiring legal assessments, more rigorous scrutiny of token economics, and extensive identity verifications.
As reported by a Bitget press release that was circulated on crypto.news, the firm has introduced rigorous standards for adding tokens to their platform. This move is intended to protect users from engaging in risky projects and prevent them from becoming victims of potential exit scams.
According to the latest guidelines, any project aiming for listing on Bitget undergoes an extensive evaluation process that scrutinizes various facets. This thorough examination includes a meticulous legal review aimed at verifying the project’s coding standards, safety protocols, and adherence to regulatory requirements.
Bitget’s new listing criteria
The revised guidelines place great emphasis on the economics of tokens. Starting now, Bitget will delve deeper into examining the amount of tokens in circulation, how they are distributed, and the total market value of the project when all potential shares are taken into account.
Projects having Future Development Values (FDV) more than 20 times the money collected during their funding rounds might suggest overvalued appraisals, causing concern. For instance, a project that gathers $5 million in funding should not have an FDV greater than $100 million to ensure that valuations align with what the market generally anticipates.
Beyond this, Bitget will examine the token release timelines, flagging any unlock periods shorter than two years as potentially suggesting insufficient long-term dedication from the project team. This might result in premature selling pressure, threatening the token’s stability.
On Bitget, we’re adopting tougher criteria for tokens listed on our platform to shield users from fraudulent projects. Here’s a glance at the measures we’re taking to secure your investments ↓↓
— Bitget (@bitgetglobal) October 10, 2024
The system will additionally examine the history and financial backing of the project’s development team. Projects with support from well-known organizations tend to clear the listing process with ease, whereas those with backing from less recognized entities might undergo extra review.
Projects with any history of fraudulent activities like rug pulls or Ponzi schemes are automatically ineligible for listing. Tokens that are already being traded on other platforms will undergo more thorough scrutiny, involving an examination of on-chain data to evaluate their financial stability.
Any tokens displaying a large difference between their trading activity and Funded Development Value (FDV) may trigger warnings for possible market manipulation.
As a diligent analyst at Bitget, I ensure that every project seeking to list a token here undergoes a thorough examination of both its legal and technical aspects. This rigorous review process is designed to evaluate the quality of the code, security measures, and regulatory compliance of each project, all in accordance with our stringent listing criteria. This meticulous step serves to safeguard our users from high-risk projects that may not meet our standards, ultimately preventing them from being listed on Bitget.
Hon Ng – Chief Legal Officer at Bitget.
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2024-10-10 16:36