INTRODUCTION
In this Coin Listing Guide of (hereinafter referred to as “we”, “our”, “ours”, “the Company”), the customers (hereinafter referred to as “customers”, “users”, “you”, “your”, “yours”) will get to be acquainted with our Coin Listing Guide and our vision. The customers shall also be aware of the compliance of the coin listing procedure and how they align with our core vision and statements.
1.0 ’S VISION & STATEMENTS AND HOW DOES THE COIN COMPLY TO OUR CORE VISION AND STATEMENTS
1.1 Decentralized System
It is defined as the system available to everyone and is not controlled by any single entity or an organization. The network should be public and enable trustless consensus.
1.1.1 Innovation or Efficiency Gain
New and advanced technology that intends to solve a problem, establishes & address to the need of a new market, creates value for the network participants
1.1.2 Economic Freedom
The technology enables individuals to have more control over their assets or to consume, produce, invest or work as they choose.
1.1.3 Equal Opportunity
The technology should not hold any restriction for use by anyone. It should contribute to the broader mission of building the on-ramps to Finance 2.0.
2.0 TECHNOLOGY AND ASSESSMENT OF THE ASSET AND NETWORK
2.1 Security and Code
Assessment of engineering and product quality is conducted.
2.1.1 Source Code
Open source code, well documented peer-review, and testing by contributors separate from the initial development team on Github, etc.
2.1.2 Working Prototype
There is a working alpha or beta product on a testnet or mainnet.
2.1.3 Protocols & Security
Demonstrable record of responding to and improving the code after a disclosure of vulnerability, and a robust bug bounty program or third-party security audit.
2.2 Team
Assessment of short-term operating expectation and decision making is conducted.
2.2.1 Board Members and Founders
The Board members and Founders will be able to articulate company strategies, vision, use case or drive developmental progress. Must possess a track of demonstrable success or experience.
2.2.2 Architect
Assessment of the system architects and development teams with a proven track record of setting and achieving goals.
2.2.3 Business & Operations
Proven track records of stakeholder management, setting reasonable budget, fund management and achieving project milestones. Strategic drive in business fundamentals are the key to project long term viability.
2.2.4 Domain Experts
Domain knowledge should not be centralized to a small group of people.
2.3 Consensus Mechanism
There should be a structured process to process definition for implementation of major code updates or voting process for conflict resolution.
2.3.1 Future Revenue Generation
There should be a plan for or built in mechanism for fundraising, rewarding or allocating funds for future development beyond the funds raised from ICO or from traditional investors.
2.3.2 White Paper
Justifies the use case for a decentralized network and outlines project goals from a business and technology perspective.
2.4 Improvisation & Scalability
Assessment of network’s potential hindrance for scaling and ability to grow and handle user adoptions.
2.4.1 Clear Milestones Setup
Clear timeline with development outlines, reasonable project milestones, or built-in development incentives.
2.4.2 Operating Expenses
The barriers to scaling the network have been identified, or solutions have been proposed or discussed. The resource consumption costs for validators and miners are not the main deterrents to participation.
2.4.3 Type of Blockchain
The asset is a separate blockchain with a new architecture system and existing blockchain for synergies and network effects.
3.0 MARKET DISTRIBUTION AND THE IMPORTANT METRICS TO CONSIDER TO LIMIT THE RISK OF PRICE MANIPULATION.
3.1 Liquidity Benchmarks
It is to be determined how liquid the asset is.
3.1.1 Market Capitalization
The determining factor is about the market capitalization when compared to the total market capitalizations of other assets.
3.1.2 Asset Velocity
Trade velocity, or turnover is a significant part of market capitalization. This is a measure of how easily the asset can be converted to another asset.
3.1.3 Circulation
For service or work tokens, new supply is created through consensus protocols. If the supply is capped, then a material amount of the total tokens should be available to the public.
3.2 Global Circulation and the Asset available for Trade
3.2.1 Total number of exchanges
The number of exchanges that support the asset.
3.2.2 Geographic allocation of asset
The asset should not be restricted to a single geographic region and should be available to trade on a decentralized exchange.
3.2.3 Fiat & Crypto Pairs
The asset should be paired with Fiat for trade.
3.2.4 Exchange Volume Distribution
If secondary markets exist, then volume should be relatively distributed across the exchanges.
4.0 MARKET DEMAND AND THE METRICS IMPORTANT FOR MONITORING ADOPTION OR NETWORK EFFECTS
4.1 Demand
The driving reason for this asset and whether it leads to stronger network effects.
4.1.1 Customer Demand
Customer demand is carefully considered, however, any asset which is created from a fork, airdrop, or automated token distribution is subject to a separate set of criteria.
4.1.2 Developers & Contributors
Growing developer base and measured progress as defined by the number of repositories, commits and contributors.
4.1.3 External Stakeholders
There are investments from venture firms or hedge funds which have experience in working with crypto companies or projects. The project has corporate partnerships, joint ventures, or dedicated consortiums.
4.2 Network Standards
Rudimentary assessment of growing network effect.
4.2.1 Change in Market Capitalization
The market capitalization has grown after the network has activated, demonstrating increased demand for the asset after the project’s launch.
4.2.2 Nodes
Growing number of nodes on underlying blockchain. The project should have a globally distributed node network, meaning operating nodes are not contained in a single country or a geographic region.
4.2.3 Transaction Fees
Growing number of transactions and fees paid over time. Growing number of asset or token holders which is an indicator of asset distribution.
5.0 LEGAL & COMPLIANCE AND APPLICATION OF LAWS, COMPLIANCE AND REGULATORY BEST PRACTICES
5.1 Regulation
If can legally offer this asset.
5.1.1 US SEC Compliant
The asset should not be classified as a security.
5.1.2 Compliance Obligation
The asset should not affect ’s ability to meet compliance obligations, which includes, 1. AML Program, 2. Obligations under Government licenses in any jurisdiction (Eg. Money Transmitter Licenses).
5.2 Integrity & Regulation Risk
Whether listing the asset is inconsistent with Policy.
5.2.1 User Agreement
The asset, network, application or fundamental nature of the project does not constitute a prohibited business under terms of User Agreement.
6.0 CRYPTO FINANCIAL STRUCTURE AND ASSESSMENT OF HOW THE ECOSYSTEM’S PARTICIPANTS ARE REWARDED TO BEHAVE
6.1 Economic Incentives
It is observed and assessed whether the economic structures are designed to reward the network participants to act in the best interest of the network.
6.1.1 Type of Token
It is a service, work, or a hybrid token. Tokens backed by Fiat or other physical assets are categorized as US Securities and will not be considered this time.
6.1.2 Utility of the asset
There is utility from obtaining, holding, participating, or spending the asset. The team defines a clear and compelling reason for native digital assets to exist.
6.1.3 Inflation
There is an algorithmically program inflation rate which rewards security and network effects.
6.1.4 Penalties
There should be mechanisms which deter bad network behavior.
6.2 Token Sale Structure
A small subset of what we believe are the best practices for ICOs and indicators of the token’s future ability. If the token did not have a sale, this section is not applicable.
6.2.1 Security
There is a focus on stringent security protocols and best practices to limit scams, hacks and theft of funds.
6.2.2 Participation Equality
Best efforts by the team to allow a fair distribution of tokens.
6.2.3 Team Ownership
The ownership stake retained by the team is a minority stake. There should be a lock-up period and reasonable vesting schedule to ensure the team is economically rewarded to improve the network in future.
6.2.4 Transparency
The team should be available and responsive to questions or feedback about the product, token sale or use of funds across the multiple forums.
6.2.5 Total Supply
The team should sell a fixed percentage of the total supply, and participants should know the percentage of total supply that their purchase represents or have a clear understanding of the inflation rate.
6.2.6 Ethics and Code of Conduct
White paper should cover the entire aspects for ethical or professional code of conduct.