Crypto exchange, Bitget is introducing new strict rules for listing tokens to protect users from scams. Before a cryptocurrency project can list its token on Bitget, it must go through a thorough legal review. This review checks the quality of the code, security measures, and if it meets the exchange’s standards.
Hon Ng, Bitget’s Chief Legal Officer, stated that all projects must meet these strict standards to ensure user safety. If a project doesn’t pass the review, it won’t be allowed to list its token on the platform. These measures aim to improve the experience and safety of users while allowing Bitget to remain innovative.
The exchange is also updating its token evaluation process with stricter criteria. This includes examining the token’s economics, such as its supply, distribution, and usefulness, along with the experience of the development team.
For new projects, Bitget evaluates their potential value based on how much they plan to raise. For example, if a project wants to raise $5 million, its total potential value should be less than $100 million. This is to avoid misleading investors.
Projects will also be assessed based on their previous funding and the credibility of their backers. Projects supported by well-known institutions are more likely to pass the review, while those with lesser-known backers will face more scrutiny.
Bitget will look at the schedule for when tokens become available for trading. If the unlock period is too short, it may indicate that the project team isn’t committed long term, which can hurt the token’s price stability.
For tokens already in circulation, Bitget will analyze trading activity and economic health. A significant gap between trading volume and potential value could indicate overvaluation or manipulation.
The exchange will check the security of the smart contracts and token distribution for projects already listed elsewhere. Projects with high risks, like those with a large amount of tokens held by a few people, will face additional scrutiny.
Social media activity, community engagement, and any past connections of team members to fraud will also be considered. Bitget would want to ensure that any potential listings pass strict checks to avoid high-risk tokens.
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When evaluating new projects, Bitget will look at various risks, including financial, security, and ethical concerns, to prevent scams like Ponzi schemes. A detailed business plan will be required to ensure projects have a clear path forward.
Hon Ng stressed that Bitget is committed to protecting users, who go through a detailed registration process, and ensuring they can trust the projects listed on the exchange.
Promising blockchain projects might be able to list on Bitget without extra fees if there’s user demand. However, all projects must still meet the required criteria.
Gracy Chen, the CEO of Bitget, emphasized that the exchange aims to create a safe trading environment. By implementing these new standards, Bitget is not only safeguarding its users but also ensuring that listed projects are strong and viable for the long term. The exchange is dedicated to supporting projects even after they are listed.
