Switcheo has announced an update to its guidelines for listing tokens, which is designed to “protect traders interests as well as to encourage better liquidity.” Switcheo is removing current listings that don’t meet the new standards, while concurrently adding new tokens that do adhere to the guidelines.
Changes to the token listings will take effect after the deployment of the Switcheo V3 smart contract. The upgrade follows a maintenance period that is scheduled to begin at 12:00pm (UTC+8) on Monday, March 25th, 2019.
Switcheo aims to be a “decentralized exchange that does not just strive to have the user experience of its centralized counterparts, but also to have liquid markets comparable to the current leading exchanges.”
To improve liquidity, Switcheo has partnered with external market maker programs but is still unable to list every token on the market. Further, the leadership does not want to list every token and risk Switcheo becoming “viewed as a dumping ground.”
The non-custodial exchange is “transitioning to a fully curated model with a transparent listing policy that [Switcheo] will continuously review and improve upon.” Switcheo aims to list coins “with both strong utility and speculative value.”
New listing standards
New criteria to list on the Switcheo platform includes the token market cap size, demand for token usage, and initial fundraising amount. If the listing is a stable coin, funds need to be backed either by an algorithmic model or by a Trust company.
For listing consideration, tokens must have over US $100 million in market capitalization to signal strong demand for the token usage.
Additionally, projects that wish to list must have raised more than US$1 million in fundraising, and up to 10% of the token supply should be “committed for providing liquidity until their token is fully usable.”
Lastly, if a market-making partner is providing liquidity, the prospective token must be above US $10 million in market capitalization.
NEO token delistings and suspensions
Switcheo is delisting the New Kind of Network (NKN) token due to the project transitioning to the Ethereum blockchain.
The non-custodial exchange is temporarily delisting the Moonlight (LX) token for trading as the workforce platform undergoes a smart contract upgrade.
The full announcement can be found at the link below:
https://medium.com/switcheo/listing-policy-update-827038d463d8
About The Author: Dylan Grabowski
Dylan is a reformed urban planner with a passion for covering the Neo ecosystem. His objective as a writer for Neo News Today is to report news in an objective, fact-based, non-sensational manner. When not behind a computer screen, he can be found in the mountains rock climbing. Find Dylan on Twitter (@GrabowskiDylan).
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