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   966

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.

HKEX to Hesitate with Bitmain IPO Application Approval

Watchdog is very careful due to unfavorable situation in the market
17 December 2018   72

The Hong Kong Stock Exchange (HKEX) is in no hurry to approve applications for initial public offering (IPO) from leading Chinese cryptocurrency companies due to an unfavorable situation in the market, CoinDesk reports.

For the year, Canaan Creative, Ebang and Bitmain, the mining equipment manufacturers, submitted applications for IPO.

The exchange is very hesitant to actually approve these bitcoin mining companies because the industry is so volatile. There’s a real risk that they could just not exist anymore in a year or two. The HKEX doesn’t want to be the first exchange in the world to approve this and have one die on them. 

Anonimous Source of Coindesk

IPO applications must be approved by HKEX and the Securities and Futures Commission (SFC). After they are allowed to be considered at the hearings on listing, which, in particular, determines the nominal stock price and the volume of their offer. If the applicant does not appear at the hearing after six months from the date of application, the application expires. Within three months, the initiator of the IPO can recover the application that was withdrawn from consideration.

As previously reported, in November, the Canaan Creative application expired. Ebang has two more weeks so that HKEX does not freeze the request, and Bitmain has three months.

Right now, I don’t think that any of them could make it to the listing hearing. If either one doesn’t approve it, you can’t make it to the listing hearing.

Anonimous Source of Coindesk

HKEX also pays special attention to financial statements and cryptocurrency savings of companies. According to the source CoinDesk, the exchange carefully ensures that the initiators of the IPO regularly disclose information about the losses.

Note, according to Bitcoinist, the losses of the mining company Bitmain in the third quarter of 2018 were estimated at $ 740 million.

Meanwhile, a Twitter account BTCKING555 published information that Bitmain's cryptocurrency savings had decreased to $ 80 million.

However, CoinDesk sources also added that, perhaps, HKEX simply delays approval of applications due to uncertainty.