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   719

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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Japan to Tighten Regulation Due to Zaif Hack

$ 62 000 000 worth cryptocurrency was stolen from the Zaif exchange few weeks ago
25 September 2018   70

Hacking of Zaif exchange is the reason for toughening control over the market by the financial regulator of Japan, Reuters reports.

The first measure taken was administrative sanctions against the exchange and its operator Tech Bureau Corp. The Financial Services Agency (FSA) has expanded the list of requirements for the latter, pointing out the need to identify preventive measures and search for the organizers of the theft.

Shortly before that, researchers of the Japanese financial company Tech Bureau Corp could not provide details of the theft of $ 62 million from the Zaif crypto exchange at the request of the FSA. The Osaka-based operator had to investigate the causes, consequences of the theft and options for compensating the victims. According to the Agency, the financial company could not cope with the task.

According to the Tech Bureau, the exchange was hacked on September 14 within a few hours. The problem with the server was discovered by the site staff on 17 September. Official confirmation of the incident and notification of the authorities was made only a day later.

Recall, the theft of $ 60 million from the Japanese stock exchange Zaif caused a surge of volatility of bitcoin. For a short time the price was able to overcome the distance of $ 400.