Bitget increased the strictness of token listing criteria on their platform on October 10 to cut down on scams and make crypto safer.
The Seychelles-based cryptocurrency exchange Bitget has announced a significant revision of its token listing requirements to enhance security and trust. The update implemented on October 10 implements more stringent criteria to mitigate the risk of scams and maintain the integrity of listed tokens.
According to CoinMarketCap and DefiLlama, Bitget is one of the most prominent crypto exchanges in terms of trading volume, managing over $3.4 billion in user assets and over $1.5 billion in daily trades. As a result, these most recent modifications underscore the necessity for more stringent regulations and demonstrate the growing apprehension within the crypto community regarding fraudulent projects.
The new listing standards meticulously examine each project’s business plan and the developers’ backgrounds. Additionally, projects must satisfy several critical criteria, such as a fully diluted valuation (FDV), a history of previous development and investment, detailed business plans, lock-up periods, token distribution strategies, and active social media engagement.
Bitget Implements a 20x FDV Limit
Bitget has redesigned its listing process to emphasize tokenomics. To guarantee equitable growth and development, the exchange now conducts an exhaustive assessment of token supply, distribution, and utility. The Fully Diluted Valuation (FDV) of a project is a critical component that estimates the total value of the token supply. Bitget has established a restriction that necessitates the FDV to be at most 20 times the amount of financing raised.
For instance, if a project raises $5 million, its FDV should be at most $100 million. The representative of Bitget stated that the FDV must be consistent with the amount raised to maintain a ratio of less than 20 times the financing. This step aims to prevent investors from being misled by inflated valuations.
Additionally, Bitget evaluates tokens with less than two years of lock-up periods. Shorter unlock periods suggest a lack of long-term commitment from the project team, which could result in early sell-offs and price drops—bitget endeavors to establish a more stable and dependable trading environment by advocating for extended lock-up periods.
Bitget Enhances Team Vetting
Bitget is increasing its scrutiny of project teams by prioritizing comprehensive background checks on team members. These examinations identify any connections to fraudulent activities, investor deception, or unlawful activities. Hon Ng, Bitget’s Chief Legal Officer, underscored the significance of safeguarding users who devote time to submitting registration documentation. This endeavor serves to bolster Bitget’s dedication to user safety.
Bitget will conduct supplementary reviews for tokens already listed on other exchanges, emphasizing the security of smart contracts and the distribution of tokens. Projects classified as high-risk and may be rejected are those in which the team maintains a majority ownership of over 50% of the tokens or the issuer retains more than 20%.
In 2024, Simpson-themed tokens were a notable example of centralized control being concealed by dispersing the tokens across multiple addresses. The project was excluded from the platform due to Bitget’s identification of the centralization.
