Crypto Exchanges Initiating Controversial Approach To Maintain Income Due To Massive Crypto Fall
After reaching the peak of its value around December 2017 and January 2018, the dramatic fall which Cryptocurrency is experiencing lately has made some of the biggest exchange platforms to initiate what could be called unconventional practices to maintain their income despite the plunge.
According to CoinMarketCap, cryptocuyrrency is at the moment 80% below its peak value, and exchanges are trying to sustain their activities by implementing practices like exchange listing fee, establishment of own native coins and traffic request, among others.
Pay To Get Listed
Although exchanges like Binance and KuCoin claim to list coins based on credibility, but they are requesting variable pay rate for listing on their platform. The CEO of Binance, ChangPeng Zhao, once said even if offered 4,000 BTC, “we don’t list shitcoins”.
Attesting to the fact that some exchange now charge whooping sum for listing, Christopher Franko, the co-founder of the blockchain startup that is based in Washington, claimed he was quoted 400 BTC for listing on Binance, and similarly 50 BTC for listing on KuCoin exchange.
Franked rejected making such payment averring that many startups will prefer to invest such fund on marketing, development and research.
The two exchanges refuted the fact that they requested such amount for listing from the cofounder but maintained that fact even though their listing fee varies the quality of the project matters a lot.
Contrarily, Nasdaq Inc. listing fee is based on the share of the company. For the listing of a company with up to 15 million shares, $50,000 is acceptable, while $225,000 is requested for the listing of a 15 million shares company.
Community Contribution As Listing Prerequisite
Instead of charging fee, the world known second largest exchange, Okex however request applicants to add to their community with users. Applicants must offer 50,000 new registered users to Okex, of which 20,000 must be active. In this contest, active user means someone who has a minimum of 1 ETH worth in the account.
Binance also make use of a similarly approach, it gives project that incorporate its currency into their ecosystem more privilege.
“We remember people who help us,” ChangPeng Zhao, said.
The Voting Method
Giving existing loyal users say in the listing of coins, Bitfinex makes use of the voting technic whereby holders of native coin are given the privilege to vote for coins to be listed. Okex sometime also uses the approach.
To be candid, the future of a coin is more in the hand of the team. What a coin offers really matter. If a coin stands out to give tangible things, it will likely get listing approvable from most exchanges. Not to gain say, if Bitcoin were to be released today, it would have received favour from countless of exchanges due to its viability and potency in the fintech world.