Bitget Exchange Unveils Revised Token Listing Criteria to Enhance Security and Transparency

One of the main players in the crypto market, Bitget Exchange, has released its revised token listing criteria. This action is meant to improve security, lower the possibility of fraud, and give users more open surroundings.

Major crypto exchange Bitget has updated its token listing criteria to enhance security, reduce the potential for fraud, and provide users with a transparent trading environment.

As the exchange handles over $1.5 billion in daily trades and watches over $3.4 billion in user assets, these stringent requirements showcase Bitget's commitment to protecting user investments and maintaining the integrity of its platform.

Assessing FDV and Team Background for Long-Term Stability

Kicking off with the token's fully diluted valuation (FDV), the new listing criteria focus on evaluating several aspects of a project.

Projects applying to get their tokens listed must demonstrate that their FDV is less than twenty times the funds raised during their financing rounds. For example, a project that raises $5 million will have an FDV of less than $100 million. This helps to prevent inflated valuations that can quickly deceive investors and create financial instability.

Furthermore, Bitget will be conducting in-depth examinations of development teams' backgrounds, and projects will be required to submit detailed business plans and roadmaps to ensure long-term sustainability.

These assessments also include background checks on team members to identify any potential links to fraudulent activities or illicit operations. Hon Ng, Chief Legal Officer at Bitget, stated:

“Projects looking to list a token on Bitget must undergo a rigorous legal and technical review to assess its code quality, security measures, and regulatory compliance, in accordance with Bitget’s listing criteria. This is an important step to protect our users from projects with high risks. Those that do not meet the standards will not be able to get listed on Bitget.”

Additionally, this new evaluation method places a significant emphasis on the token unlocking timeline. Bitget identifies projects with shorter lock-up periods as high-risk, as such plans can lead to early sell-offs, which in turn destabilize token prices. These guidelines apply to tokens that are already in circulation.

Now, Bitget will be paying closer attention to the paramount importance of on-chain data analysis in ensuring economic stability. The relationship between 24-hour trading volume and FDV serves as a critical indicator; a substantial disparity could signal either a lack of organic demand or price manipulation.

For example, a token with an FDV of over $10 million but a 24-hour trading volume of less than $1 million would raise red flags.

Bitget's In-Depth Review Uncovers Risks in Token Distribution

Bitget examines token distribution and the security of smart contracts with extra vigilance, especially for tokens that have already been listed on other exchanges. Projects where the developer team retains more than 50% of the tokens or the issuer controls more than 20% are deemed risky, often indicating a tendency toward centralization.

In some cases, projects attempt to conceal these risks by distributing tokens across multiple wallets, but Bitget's thorough investigation can uncover such underhanded tactics. This comprehensive approach helps the platform to weed out high-risk assets.

Broadly, these updates embody Bitget's dedication to ensuring a secure and transparent trading environment. By also nurturing blockchain ecosystems, Bitget has positioned itself as a forward-looking platform.

As we covered previously, to accelerate dApp development and grow the ecosystem, the exchange has joined forces with Foresight Ventures to allocate $30 million to the TON blockchain.

In another move, Bitget is expanding the horizons of blockchain accessibility through OmniConnect, which integrates Telegram into a Web3-compatible platform. As CNF highlighted, the integration enables users to seamlessly interact with over 500 different blockchains, underscoring Bitget's leadership in the Web3 arena.

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