Circle’s Decision-Making Process On New Token Listings Revealed


The criteria exchanges employ in making listing decisions is not entirely an exact science.

In an effort to offer clarity, Goldman Sachs-backed fintech startup Circle has released details regarding how it decides what to list on its Poloniex exchange. The five broad categories that Circle examines when analyzing the potential of an asset are market dynamics, business model, people, technology, and fundamentals.

Projects looking to be listed must fill out the Asset Listing Form firm after which a legal analysis, security review and implementation testing of the asset will be conducted if the project shows promise.

Each judged on its own merit

According to a statement Circle put out on its blog, the requirements checklist was not comprehensive and was only meant to serve as a guide and may not apply to all projects.

“We understand that projects may be at different points in the development cycle, and each brings something different to the table. Instead, this framework is meant to help us prioritize new listings according to the opportunity they present for Poloniex customers,” Team Circle wrote on the company’s blog.

In the case of airdrops, swaps, and forks, Circle pointed out that the events are evaluated individually. A project stands a higher chance of getting the support of Circle if the planning and documentation is done and communicated well ahead of time.

In its statement Circle admits that when projects fail to meet goals set out by the company it may be necessary to delist. Projects are normally notified of a delisting seven days in advance during which they will be able to keep on trading and close positions. Another 14 days will be given for projects to withdraw remaining balances from the exchange.

No listing fees at all

In the release Circle pointed out that it does not accept payment to list an asset. On some platforms projects have to pay huge fees in order to get listed. As CCN had previously reported, research conducted by Autonomous Next LLP showed that listing fees sometimes ranged between $1 million and $3 million, compared to between $125,000 and $300,000 that firms pay to get listed on the Nasdaq.

Circle’s updates on its asset listing process come at a time when the company is demonstrating growing ambitions. After a US$ 110 million Series E round in May which was led by Bitcoin mining hardware manufacturer, Bitmain Technologies, it was reported earlier this month that Circle was seeking to register as a securities exchange and obtain a federal banking license as well.

According to Chief Executive of the fintech startup which is now valued at approximately US$3 billion, Jeremy Allaire, acquiring a federal banking license would cut costs and enhance efficiency.

Featured image from Shutterstock.

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