Crypto exchange Bitget is taking significant steps to enhance the safety of its platform by implementing more stringent standards for token listings. This initiative, announced on Thursday, aims to shield users from potential exit scams and high-risk projects.
Thorough Review Process for Projects
All blockchain projects seeking to list their tokens on Bitget will now be subjected to a comprehensive legal and technical review. Hon Ng, Bitget’s chief legal officer, emphasized the importance of this process, stating, “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.”
Improved Token Evaluation Protocols
To reinforce its token evaluation methodologies, Bitget is adopting updated protocols that demand strict adherence to various criteria. A crucial aspect of this evaluation includes an in-depth analysis of the project’s tokenomics, focusing on factors such as token supply, distribution, utility, and the experience of the development team.
Assessing Fully Diluted Valuation and Token Unlock Guidelines
For newly emerging projects, the evaluation process begins with a detailed analysis of the fully diluted valuation (FDV). Bitget insists that the FDV should generally not exceed 20 times the amount raised during funding rounds. For instance, if a project secures $5 million in funding, the FDV should remain below $100 million to ensure fair valuation practices and prevent misleading representations.
Additionally, Bitget will scrutinize previous funding rounds to flag any potential risks. Projects linked to reputable institutions are more likely to obtain approval, while those with lesser-known or dubious backers will undergo heightened scrutiny. The token unlock schedule will also be critically evaluated; shorter unlock periods may indicate a lack of long-term commitment and risk early selling pressure.
Analyzing Token Circulation and Smart Contract Security
For tokens already circulating in the market, Bitget employs on-chain data analysis to evaluate economic health and trading activity. A notable discrepancy between trading volume and FDV—such as an FDV exceeding $10 million with minimal trading volume—could suggest overvaluation and possible price manipulation.
Moreover, the exchange will assess the security of smart contracts and the distribution of tokens listed on other exchanges. Indicators of high risk, like trading suspensions or the ability of issuers to alter balances, will raise alarms. Projects demonstrating concentrated token distribution are viewed as risky, prompting Bitget to utilize blockchain explorers to reveal authentic distribution patterns and expose fraudulent practices that misrepresent token supply.
Evaluating Social Media Presence and Team Background
Bitget also places considerable emphasis on evaluating the social media presence and community engagement of the projects. The backgrounds of team members are thoroughly vetted to ensure none have been previously involved in scams or illegal activities. This comprehensive review is aimed at filtering out high-risk assets and detecting unethical practices associated with token projects.
In addition to these evaluations, Bitget requires projects to submit a detailed business plan and roadmap. This stipulation is designed to mitigate the likelihood of listing short-lived projects or scams, thereby enhancing transparency and safeguarding user interests.
Listing Opportunities for Promising Blockchain Projects
Bitget remains open to listing promising blockchain projects at no additional cost, provided their tokens are in global demand. In other situations, token placement may involve commercial agreements, such as paid partnerships, but all listed tokens must still comply with the rigorous requirements set forth by Bitget.