Following the recent publication of a report by the Blockchain Transparency Institute (BTI) is brewing a scandal in the crypto industry. The recently released report the BTI examined the data that were collected at some of the biggest crypto currency exchanges in the industry, and noted that some of the Exchanges Trading to use Bots to increase the volume of trading of many crypto-currencies artificially to fake the Numbers and to improve. The Background is probably that the Exchange for potential customers should be interesting.
Many companies want to sell their tokens, as new investors and traders are conducted in large numbers to the crypto-currency markets. But, the typical 0815-Investor, particularly in the United States, buy Token on crypto Exchanges. Investors pay their Fiat currency, for example. USD in crypto-exchanges, such as Coinbase, Binance and Gemini and buy the Coins or Tokens you are interested in. Therefore, new Blockchain projects that want to appeal to a wide audience of investors must leave their Token on these Exchanges lists, and that has its price.
BTI found that an average Blockchain project has spent in the last year alone, 50,000 USD for Listings on Exchanges. In the ideal case, this is a business for all Parties is useful because it should pay off in the Coin or Token of a large number of investors to invest USD 50,000. The projects pay for the Exchanges and pay for these, in turn, the operating costs incurred in the provision of the Coins or tokens on your side. In addition, the projects gain visibility and potentially a much larger user base.
A recent Business Insider study showed that some of the larger Exchanges require up to A Million USD a listed Coin. And yet, all of the Exchanges are not completely transparent with their Numbers. Exchanges require a large number of users and the daily volume to be able to these fees call. So smaller Exchanges that do not have the same volume as Coinbase and Binance, have their transactions to forge begun to be able to more for the Listings of new Coins / tokens request.
A report from Autonomous Research showed that the cost for a crypto-Listing of one Million dollars “for a very well considered tokens up to Three million dollars”, only to have to quickly a lot of liquidity. In comparison, the approximately $125,000 to $300,000 every plus $100,000 to $500,000 in annual fees for already accepted and widely used cryptographic Assets, said the Report.
The results of the report will draw for a lot of Exchanges, a very negative image and to show that much of the self-reported volume is actually created artificially by the Exchange itself. BTI estimates that the crypto-Ecosystem in the year 2018 has been lost due to fake volume and high Exchange fees. 100.000.000.000 $ (USD 100 billion).
What are the Alternatives?
In the same report, the BTI also released a list of “trusted Exchanges” that do not work with such practices. The BTI has come to the conclusion that larger Exchanges such as Binance charge, while also Listing fees that you have to fake it, but not necessary, your Trading volume. In fact, the study shows that the Binance and Bitfinex have the highest contribution to the real Trading volume. Binance forwards the amount paid to them Listing fees in the Binance Charity Fund (BCF). This is a project that aims to help raise funds for people suffering from poverty and natural disasters. Projects that want to be listed, you can set your desired fees (= donations), which are then published by the BCF and, therefore, a promotional effect for the project. Binance claims that they not impose a minimum fee for a successful Listing.
A large donation guarantees, or be influenced in any way the result of our audit process for the Listing of a project.
Binance CEO Changpeng Zhao
Exchanges, the call is no fees for Listing of Coins / tokens by winning in the emerging industry of increasing importance. For example, Exchanges such as Gate.io, Poloniex and Bittrex processes they offer no Extra fees when new Coins / Tokens. Bitrue was recently launched with the aim to be the most intuitive and the first crypto-platform. You describe yourself as a project that will not only be an Exchange but a “Community” and a “One Stop solution” for investors. The platform does not charge any Listing fee and has set itself the goal “to create the most professional and cleanest” investment environment.
In the light of recent findings, the crypto-Community fights against Listing fees and denounces you as a measure, the Manipulation promotes, because they create monetary incentives to make an objective decision as to Coins. Exchanges, which charge no Listing fees, receive more and more positive Feedback, and will certainly contribute to ensuring that the industry is stronger and safer.
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This article was from English into German:
Senior IT Consultant and Crypto Enthusiast always in search of interesting news.