Binance and Bitrex List Better Coins Than Their Competitors, Study Says

The study is based on the all the coins that started

trading in 2017/18 on the exchanges.

With the recent boom in the demand for cryptocurrencies, a certain set of firms

have enjoyed massive profits – the cryptocurrency exchanges. However, the rapidly

rising number of tokens on the market, including many fake ones, has made it very

tough for exchanges to choose the right coin to list for trading.

Learn how to buy Bitcoin and Ethereum safely with our simple guide!According to

a recent analysis conducted by Dier regarding the performance of cryptocurrency

exchanges, Binance and Bittrex list better performing coins when directly compared to

HitBTC, Huobi, and OKEx.

According to the study’s findings, the inverse success ratio of new tokens generated

via an ICO is 27 percent for Bittrex and 38 percent for Binance, while for both Huobi

and OKEx, the ratio is 64 percent. HitBTC, which lists the maximum number of new

tokens, meanwhile has an inverse success ratio of 61 percent.

Inverse Success Ratio of Exchanges, Dier

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Given the large amount of coins on the market, choosing the right one to list

can be like finding a needle in a haystack. This caused Binance to build a dedicated

team to review the coins that apply to be listed, the company’s CEO Changpeng Zhao

is quoted as having said in the study.

“Binance has a team that is dedicated exclusively to reviewing applications for new

tokens,” the text reads. “Mr. Zhao stressed that the sustainability of the project is very

important to Binance as they review the teams behind the project and their working history.”

Moreover, rising regulatory woes in countries like the USA has made it even tougher to

scrutinize the coins, as local regulations forbid exchanges from listing any ICO tokens

that can be considered as securities.

Earlier this month, the Securities and Exchange Commission (SEC) even issued a warning to

exchanges allowing the trading of such tokens, stressing that it sees this practice as the unregistered

offer and sale of securities.

Binance as well as Bittrex, which is currently the only exchange offering ICO tokens in the US,

consult with lawyers prior to listing any token to determine whether the digital asset is a security or not.

The tokens also need to pass their due diligence test which checks whether the project has an innovative use case.

“Bittrex uses a robust digital token review process to ensure the tokens listed on the exchange are compliant with U.S. law and are not considered securities,” the Dier report quoted a Bittrex representative as saying.

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