2024

Online

Crypto exchange Bitget has announced an overhaul of its token listing requirements, introducing tighter criteria that now mandate a detailed review of projects’ business plans and developers’ background checks.
According to an Oct. 10 announcement, the new listing requirements stipulate compliance with several factors, such as fully diluted valuation (FDV), past development and investment records, a detailed business plan, lock-up periods, a token distribution plan, and social media activity, among other indicators.&nbsp;
Bitget is based in the Seychelles and is <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitget-wallet-overtakes-metamask-downloads-crypto-rank" rel="noopener noreferrer nofollow" target="_self" text="null" title="https://cointelegraph.com/news/bitget-wallet-overtakes-metamask-downloads-crypto-rank">one of the largest crypto exchanges</a> by trading volume. According to data from CoinMarketCap and DefiLlama, it holds over $3.4 billion in user assets, with more than $1.5 billion in trading volume over the past 24 hours.&nbsp;
<figure><img alt="Bitget tightens token listing standards amid scam concerns" src="https://s3.cointelegraph.com/uploads/2024-10/019272a9-836c-79d9-98a4-81c3275765e0" title="">
 <figcaption style="text-align: center;">
 Total assets on Bitget. Source: DefiLlama
 </figcaption>
</figure>
The exchange said <a data-ct-non-breakable="null" href="https://cointelegraph.com/learn/what-is-tokenomics-a-beginners-guide-on-supply-and-demand-of-cryptocurrencies" rel="noopener noreferrer nofollow" target="_self" text="null" title="https://cointelegraph.com/learn/what-is-tokenomics-a-beginners-guide-on-supply-and-demand-of-cryptocurrencies">projects’ tokenomics</a> will receive “special attention,” which includes an analysis of token supply, distribution and utility. The evaluation process for new projects on the platform starts with an examination of the project’s FDV — a metric that estimates the potential value of its entire token supply.
“The FDV should align with the amount raised, typically not exceeding 20 times the financing. For example, a project raising $5 million should have an FDV under $100 million,” Bigter noted, adding that the measure “ensures valuations don’t mislead investors.”
In addition, tokens with a locking period below two years will receive additional scrutiny. According to Bitget, a short-term unlock period may indicate a “lack of long-term commitment” and potentially lead to “early sell pressure, jeopardizing the token’s stability.”
Online reputation and team members’ backgrounds, including <a data-ct-non-breakable="null" href="https://cointelegraph.com/explained/crypto-rug-pulls-what-is-a-rug-pull-in-crypto-and-6-ways-to-spot-it" rel="noopener noreferrer nofollow" target="_self" text="null" title="https://cointelegraph.com/explained/crypto-rug-pulls-what-is-a-rug-pull-in-crypto-and-6-ways-to-spot-it">connections to fraud</a>, investor deception, or involvement in illegal activities, will also influence the decision to list a token. According to Hon Ng, chief legal officer at Bitget:
<blockquote>
 “Users put in considerable effort to gather documents to register. We appreciate that and want to make sure we protect them and that they can expect the same from projects.”
</blockquote>
For tokens already listed on other exchanges, Bitget will review smart contract security and token distribution. Projects with concentrated token distributions — where the team holds more than 50% or the issuer holds more than 20% — will be considered risky.&nbsp;
“For instance, Simpson-themed tokens in 2024 attempted to hide centralized control by spreading holdings across multiple addresses, but the analysis revealed the truth, leading to their rejection,” the exchange explained.
Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/deposit-risk-crypto-exchanges-money/" rel="noopener noreferrer nofollow" target="_blank" text="null" title="https://cointelegraph.com/magazine/deposit-risk-crypto-exchanges-money/">Deposit risk: What do crypto exchanges really do with your money?</a>

Bitget tightens token listing standards amid scam concerns

Cointelegraph

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