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   301

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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Nexon Can Buy Bitstamp For $350M

Bitstamp is one of the oldest cryptocurrency exchanges and has 3 million users
25 April 2018   53

South Korean company Nexon is negotiating the purchase of the oldest bitcoin-exchange Bitstamp, founded in 2011. This is reported by Business Insider with reference to informed sources.

According to the publication, the deal can amount up to $ 350 million. In addition, according to sources, Bitstamp is negotiating with another unnamed buyer.

Bitstamp takes the 13th place among the crypto-currency exchanges in the daily trading volume and has 3 million registered accounts. It should also be noted that this platform is the only licensed in Europe.

Representatives of both organizations refused to confirm or deny the fact of the negotiation process, however, Bitstamp advised the media to closely monitor all official statements regarding this issue.