Bitget, a major cryptocurrency exchange, has made it harder for projects to sell tokens in order to protect users from projects that might be dangerous or fake. The new rules stress that business plans, token sharing, and the backgrounds of development teams should all be carefully looked over to make sure that everything is clear and trustworthy.
The exchange said on October 10 that some things that would be looked at in detail as part of its new listing process are fully diluted value (FDV), project background, business records, and social media presence. The platform will also look closely at tokenomics, such as the quantity and spread of tokens, to stop false valuations and make sure that projects match the money they have.
Bitget’s system for judging projects will pay special attention to their FDV, making sure it doesn’t go over 20 times the amount of money they raised. For example, a project that gets $5 million should have an FDV less than $100 million so that the market doesn’t have too high of hopes for it. We made this rule to keep buyers safe from tokens that are worth too much.
Also, the exchange is paying close attention to the times when tokens are locked up. Tokens with open times shorter than two years will be looked at more closely because this could mean that the project team isn’t committed to the long term and there are worries about early sell-offs that could make the price of the token unstable.
Bitget’s listing method will look into the backgrounds of project creators in more detail. If a project has any ties to fraud, like investment scams or being involved in illegal activities in the past, the site will not let it be listed. Hon. Ng, Bitget’s Chief Legal Officer, stressed how important it is to protect users by making sure that all projects on the list meet strict standards for ethics and security.
Bitget will do a lot of checks on tokens that are already trading on other platforms. For example, they will look at smart contracts and coin distribution trends. Bitget will mark as dangerous projects those where a few teams own a lot of tokens (more than 50%), since market manipulation can happen when too many people own a lot of tokens.
The new standards show that Bitget is dedicated to making trade safer by lowering the risks of scam tokens and boosting investor trust in the cryptocurrency market, which is changing very quickly.
