Bitget introduces stricter token listing standards, focusing on FDV, tokenomics, security, and compliance to protect users and prevent fraud.
Bitget, a cryptocurrency exchange, has announced tightening its token listing standards to protect users better. The exchange evaluates key factors before listing tokens. These factors include such as a project’s fully diluted valuation (FDV), tokenomics, security, compliance, and potential ethical and political risks.
Bitget’s legal and technical review process will be more comprehensive. Before any project can list tokens on its system, blockchain projects must undergo an audit of the code, security, and legal structures. Projects that do not meet these standards will not be allowed to be listed in the exchange. The idea is to minimize the chances of listing projects likely to engage in exit scams and other risky activities.
Bitget Strengthens Safeguards Against Token Overvaluation and Misleading Data
Bitget’s Chief Legal Officer, Hon Ng, said those new measures are crucial to safeguarding users. He added that projects must also show that they comprehend the tokenomics of a project, which entails the supply, distribution, and use of tokens.
Furthermore, more attention will be paid to the development team’s experience and qualifications. The FDV will be one of the key elements in the evaluation criteria. It will ensure that a project’s total token supply value corresponds to the amount of capital raised. Proposals closely involving FDV above the amount raised may be overvalued or contain misleading values.
The exchange is also enhancing its analysis of the token unlock timeline. A short or a ‘rush-through’ unlock period suggests that the project team might not have a long-term interest in the project. This is because it raises concerns about early sell-off pressure that may affect the stability of the particular token.
Bitget will analyze on-chain data for tokens already in circulation, focusing on the relationship between FDV and 24-hour trading volume. A significant divergence between these two could lead to suspicions of unrealistic attempts at skewing the market or latent market action. Further, Bitget will consider the distribution of tokens, focusing on potential situations when the majority of tokens are owned by the team or several investors.
