Crypto exchange Bitget is implementing new conditions for token listings following the recent collapse of its token, BGB. All projects must undergo a comprehensive legal review, including code quality assessment.

Stricter Tokenomics and Development Team Scrutiny

Bitget is enhancing its entire token evaluation process with a focus on tokenomics. A detailed review of token supply, distribution, and utility is now required before approval.

The qualifications and experience of a project's development team are closely examined.

For new projects, the Fully Diluted Valuation (FDV) is a key metric and should not exceed 20 times the funds raised. Bitget also assesses fund management and potential risks. Projects backed by well-known institutions are more likely to pass the filtering process, while lesser-known backers face extra due diligence.

Token unlock schedules are another critical review aspect, with short periods (under two years) raising concerns.

Bitget Responds to BGB Crash

On October 7, BGB crashed by over 56%, leading to the closure of several products. An official response from Bitget on October 8 attributed this to large leveraged transactions causing substantial price swings.

Bitget promised to compensate affected users. Those holding BGB-backed leveraged positions or using BGB as collateral are to receive compensation in USDT or through short positions on BGB. The exact causes for the rash of trades remain unclear.

Consequently, Bitget is taking serious measures to prevent similar incidents in the future by tightening token listing requirements and ensuring increased platform stability.