Bitget Tightens Token Listing Criteria to Avoid Exit Scams

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Bitget Tightens Token Listing Criteria to Avoid Exit Scams

This is a significant development in stemming specific tokens posted on Bitget as the exchange looks to ratchet up user protection standards. 

As highlighted under the new listing framework, each project intending to list on Bitget must undergo the evaluation criteria, which cover several elements deemed significant. A legal assessment will also analyze the code, its security, and how it meets society’s legal requirements.

Among the innovations of the revised criteria, the most attention is paid to tokenomics. From Bitget, there will be token supply, distribution, and an overall look at project FDV analysis. Additional investigations will occur on all projects with an FDV greater than twenty times the amount of capital in the rounds in which they are funded.

https://twitter.com/bitgetglobal/status/1844321938086506827

For example, I do not expect a project that has secured $5 million in funds sourced to have an FDV higher than $100 million so as not to distort market value expectations.

Further, Bitget will also pay close attention to token unlock schedule analysis. Special situations may include rush unlock plans that do not take more than two years. This situation implies that such projects may lack lasting support from their teams, and owners will be pressured to sell to get their money back, thus destabilizing the tokens.

Bitget Tightens Listing Criteria to Ensure Trust and Reduce Risk

It will also determine the experience of the development team, as well as their funding methodology. Big project sponsors are more likely to get their projects past the listing criteria, while projects sponsored by relatively unknown persons will receive closer scrutiny. Any links to previous fraud or otherwise unethical activity, including last rug pulls or running Ponzi schemes, will lead to an automatic disqualification from the listing process.

Tokens that have already entered other exchanges will be subjected to more rigorous checks, including determining their sound state of affairs through on-chain data analyses. Based on trading volume and FDV distribution, tokens that demonstrate a huge gap between them will be ineligible for trading, as this may indicate relative manipulation of the asset’s price.

By implementing such measures, Bitget wants to establish a less risky trading platform and regain investors’ trust in a constantly changing cryptocurrency market.

 

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