CoinOne, a major South Korean cryptocurrency exchange, has issued its official listing criteria. The criteria lay down the nine requirements for projects that seek to list on the exchange. The exchange doesn’t receive listing fees and therefore, it only lists projects that have high trading volume to generate revenue from the trading fees.
A company that seeks to list on CoinOne must have transparency in its governance model. In projects where the development and governance factions exist separately, issues can arise which lead to investor damage. The exchange stated, “Therefore, CoinOne examines in detail how the governance structure of listed projects is organized and the risks that may arise from the governance structure.”
Projects also need to have sustainable business models to list on the exchange. The crypto industry has been plagued by projects that are short-sighted and whose revenue model solely revolves around token price increase. The exchange requires all new projects to have a sustainable mid- to long-term business model.
The vision of a project and the value it seeks to give its investors will be just as crucial in order to get listed on the exchange. With an influx in crypto startups whose founders only seek to dupe investors, this stipulation seeks to protect investors from such scams.
CoinOne will also assess the market size that a project seeks to replace. The exchange explained, “If the market the project intends to replace is limited to a specific service or adapter, the market size is unlikely to expand. The extent to which the project can be extended, and which markets the tokens are in, are the criteria for examining the market size.”
Other criteria the exchange will review include the use case of a project’s products, the team formation and the experience they possess, the roadmap achievement rate and the token distribution plan.
The exchange also published its criteria for delisting projects. Projects that are involved in legal issues such as market manipulation or crime that affect token prices are will be liable for delisting. Other reasons for delisting include technical issues such as a non-functioning platform and issues with the project’s team such as bankruptcy or team dissolution. Projects with marketability issues such as insufficient trading volume will also be liable for delisting.
CoinOne, considered to one of the biggest crypto exchanges in South Korea along with Upbit and Bithumb, published the new listing criteria in response to a shift in industry regulations in the country. As CoinGeek reported recently, financial regulators in the country recently revealed that they intend to directly regulate the industry. The shift in regulations will see exchanges subjected to more scrutiny by the watchdog, with an aim of improving the transparency of crypto transactions.
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