Korean exchange Bithumb as formed a coin execution squad that will assess the merits of recently listed tokens on the platform and will decide if they should be cut, according to local news website Yonhap News. Yonhap reports that The Listing Eligibility Deliberation Committee, which was formed on August 22, will meet once a month to assess all recently listed tokens on the exchange and will take appropriate action against coins that fall below the standards imposed by the committee. Bithumb’s action follows similar steps taken by the likes of Binance and Bittrex, who have delisted hundreds of coins between them this year.
Strict Criteria in Place to Uphold Standards
The first meeting of the new committee, which is formed of “legal, technical and fintech experts”, is due to take place in September, where they will judge tokens based on the following criteria:
- The daily trading volume remains low for more than one month
- The base market cap has fallen more than one month from the time of listing
- There is no support from the cryptocurrency developer or there is no project participation
- The utility of the technologies is missing or a flaw has been found
- The token is used for or is clearly related to criminal enterprise
- The Cryptocurrency Foundation has requested removal
Any tokens that fall foul of this criteria will have two months to address the concerns, with failure to do so resulting in expulsion from the Bithumb exchange. The policy, and in particular the use of an expert panel from a range of disciplines, has been created to ensure that the token listing process remains fair and transparent. This is in contrast to the likes of Binance who have previously delisted tokens with no notice and with the decision made behind closed doors, infuriating the affected projects and token holders. The report states that Bithumb users will not be impacted to a huge degree seeing as any tokens they delist will still be tradeable on other exchanges.