Large Fees levied by ICO Listing Exchanges

Autonomous Research: Crypto trading exchanges are charging as much as ten times the amount traditional exchanges requests for safety
04 April 2018   591

The Autonomous Research (a fintech analysis firm) reported that crypto listings suppliers set a cost of a list an ICO on a known crypto exchange anywhere between $1 – $3 million. The providers of the infrastructure have realised that there’s money can be made when it passes to creating ways to liquidity. The request and entry charge on the Nasdaq Capital Market, for a listing of up to 15 million shares costs as little as $55,000 with annual payments approximately the same amount to stay listed.

Tokens become more advantageous if buyers know they can trade them readily, meaning the success of an ICO often leads to receiving the listing on an exchange.

According to the authors` point of view, startups are overfunding their projects in order to cover these astronomical fees. That’s the reason of why some firms are gaining 10 times more in funding compared to companies that have used more traditional ways. Blockchain startups have already grown more than $3 billion in ICOs this year, in comparison  with about $270 million in venture capital rounds, lending further trust to the demands made in the report.

The exchanges executing these ICOs have gotten proceeds. In 2017, Coinbase is reported to have made a $1 billion in profits and Binance $850 million. Business advisers also take a cut, somewhere approximately 5 percent of the total sum. Nowadays, over 98% of cryptocurrency exchange trading take place on centralized exchange networks (Binance, Bitfinex, Okex and Upbit).

But there is hope. Such decentralized exchanges as Bisq suggest analogous  services that centralized exchanges offer at a share of the price, but are still in the early stages of development. So, one cannot expect the astronomical fees to disappear very soon.

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Coinbase to Issue New Statement

As reported, company says it was wrong about SEC approval of acquisitions of Keystone Capital Corp., Venovate Marketplace Inc. and Digital Wealth LLC
18 July 2018   109

Vice President of Communications of Coinbase Rachel Horwitz denied the information that the company received approval from the Securities and Exchange Commission of the United States for a deal to buy brokerage companies. This is reported by Bloomberg.

It is not correct to say that the SEC and FINRA approved Coinbase’s purchase of Keystone because SEC was not involved in the approval process. The SEC’s approval is not required for the change of control application. Coinbase has discussed aspects of its proposed operations, including the acquisition of the Keystone Entity, on an informal basis with several members of SEC staff.
 

Rachel Horwitz

Vice President of Communications, Coinbase

On Monday, a spokesman for Coinbase said that the company received permission from the SEC and the Agency for Regulation of Financial Institutions (FINRA) to purchase Keystone Capital Corp., Venovate Marketplace Inc. and Digital Wealth LLC.

However, despite the refutation from Rachel Horwitz, Coinbase still intends to obtain a license to carry out brokerage activities.