South Korean exchange Bithumb has announced a new committee which will evaluate the cryptocurrencies listed on the platform on a monthly basis.
The new committee called “the Listing Eligibility Deliberation Committee,” will take into account certain factors, such as 24-hour trading volume, base market capitalization variations and project backing.
“The specific conditions for the delisting are:
- The daily trading volume of the exchange is insignificant for more than one month
- The base market cap has fallen by more than one month from the time of listing
- If there is no support from the cryptocurrency developer or there is no project participation
- The utility of related technologies Is missing or flaw is found
- used in crime or is clearly related
- requested by the Cryptocurrency Foundation to abolish listing.”
Based on these criteria, the committee will assess cryptocurrencies listed on Bithumb. Cryptocurrencies that do not meet the requirements listed above will have a period of two months to better their status before being delisted.
“Cryptocurrencies that qualify as judged will be listed. However, cryptocurrencies that have been ineligible are designated as ‘items of investment oil’ and are delisted if there is no improvement within two months.”
The committee will start its operations starting with this September.
The committee’s members are mostly lawyers and professors which ensure that the exchange’s listing process is based on legal, technical and fintech experts reviewing.
“We will strengthen the check on technology development efforts and utility of cryptocurrency projects. We will take the lead in protecting investors by creating a transparent and safe trading environment.”- stated a Bithumb official spokesperson.
The reason for launching a committee is due to the poor performance some listed coins experienced after being added to the platform. This prompted the exchange to set up a new review process before introducing new coins into the market.
Featured image: CoinDesk
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