Upbit CEO Says That Crypto Exchanges Must Screen Altcoins Before Listing Them
If you are an avid follower of crypto news then you will have noticed something interesting, crypto exchanges are continually adding new listings to their platforms every day. Choosing to list any virtual asset has an instant effect on both its volume and price since it is now accessible to more investors. Hence, it is critical that crypto exchanges do their part in ensuring that they are only listing the best coins in the market.
Crypto Exchanges Must Be More Accountable.
There are hundreds of crypto tokens entering the market every day. Coinmarketcap.com’s list is about to hit over 2,000 coins. It has become increasingly critical to start weeding out most of these coins. Crypto exchanges will act the gatekeepers in this cleanup process by serving as the arbitrators of which coins get listed for trading on their platforms.
Dunamu CEO, Lee Sir-goo, who operates a leading crypto exchange in South Korea, Upbit, recently gave the local Kore Herald an interview and shared his thoughts on screening potential blockchain tokens and projects. He stated that that various stock exchanges across the world like Nasdaq and Kosdaq all have stringent criteria to establish the kind of company stocks that they can handle, thus protecting the investors. He believes that the same level of strict measures should be used in cryptocurrency exchanges.
With over 20,000 cryptocurrencies currently existing all over the world, there must be safeguards in place within crypto exchanges that will also protect the investors. Lee believes that it is no longer enough to list a coin provided that the creators pay the listing fees. He added that one of the primary roles of crypto exchanges was doing a thorough screening and evaluation process, before finally picking a high-potential blockchain token and project with the aim of helping your clients find high-quality investment opportunities.
In his speech to the press ahead of his company’s inaugural developer’s meetup in Jeju Island, Lee also added that the screening of crypto coins was particularly crucial for crypto exchanges with crypto to fiat functionalities. The evaluation would not only add a transparency layer to the process of trading, but it would also prevent money laundering and other scams.
Upbit Cleared by Korean Authorities
Upbit hired Lee back in January this year, and he has helped to guide the exchange through a maze of regulatory ambiguity as Korea continues creating its crypto industry framework. The crypto exchange was embroiled in money laundering investigations but was eventually cleared in May. Lee also added that he acknowledged the government’s concern over the unregulated digital asset market and the great need of protecting investors.
According to Lee, Upbit would be increasing its investment into the crypto industry by about 90 billion dollars over a three-year period. He said that the blockchain industry was still entirely new in Korea with new products and players entering the field every day. Upbit plans to continue enhancing its investment in the sector to enable the blockchain ecosystem to grow and thrive.
Lee finished the interview by noting that Upbit was not planning to offer an ICO. He believes that when crypto exchanges have a native coin, then it creates favoritism for their currencies. However, competitive exchanges like Huobi and Binance have performed very well with their native coins which were launched to support convenient trading without needing to go through ETH or BTC.