Crypto Exchange Bitget Implements Stricter Token Listing Standards
Crypto exchange Bitget is enforcing stricter standards for token listings to protect users from potential exit scam projects. This decision was announced by the exchange on Thursday.
According to Hon Ng, Bitget’s chief Legal officer, every Blockchain project seeking to list its token on Bitget will undergo a comprehensive legal and technical review. This review process is essential to evaluate code quality, Security measures, and regulatory compliance based on Bitget’s listing criteria.
Bitget is enhancing its token evaluation process by introducing updated protocols and more stringent criteria. The exchange will pay particular attention to tokenomics, including token supply, distribution, utility, and the Experience of the Development team.
Stricter FDV and Token Unlock Guidelines
When evaluating new projects, Bitget will start by analyzing the fully diluted valuation (FDV). The FDV should align with the amount raised by the project and should generally not exceed 20 times the financing. For example, if a project raises $5 million, its FDV should not surpass $100 million to avoid misleading valuations.
Bitget will also review previous funding rounds to identify any potential risks. Projects with reputable institutional backing are more likely to meet Bitget’s standards, while those with less credible supporters will face additional scrutiny. The exchange will also assess the token unlock schedule, as a short unlock period may indicate a lack of long-term commitment.
Token Circulation, Distribution, and Smart Contract Audits
For tokens already in circulation, Bitget will analyze on-Chain Data to evaluate economic health and trading activity. A significant disparity between trading volume and FDV could signal overvaluation and potential Price manipulation.
In addition, Bitget will examine smart contract security and Token Distribution for tokens listed on other Platforms. High-risk indicators such as suspended trading or the ability to alter balances by issuers will raise red flags. Projects with concentrated token distribution will be considered risky by the exchange, which will use Blockchain explorers to uncover true distribution patterns.
Bitget’s evaluation process also encompasses social media activity, community engagement, and the online reputation of project teams. Members are vetted for any past involvement in fraudulent or illegal activities. This thorough review aims to exclude high-risk assets and detect unethical schemes.
Furthermore, Bitget mandates that projects present a detailed business plan and roadmap. This requirement aims to reduce the listing of short-lived projects and scams, enhancing transparency and protecting users’ interests from potential risks associated with unreliable tokens.
Promising Blockchain projects may qualify for listing on Bitget without additional fees if their tokens are in global demand. In other cases, commercial token placement may be arranged through a paid agreement or partnership, provided all necessary criteria checks are met.
