eToro CEO Highlights Factors Considered Before Listing New Crypto
Briefly–
- eToro CEO Yoni Assia highlights four main factors that the team overlooks when listing a new cryptocurrency.
- The process remains internal at the moment, but he plans to publicize it.
- The factors include client interest, volume/liquidity, review info, and due diligence.
Crypto exchange platform eToro has attracted multiple enthusiasts in 2021. In this year’s Q2, cryptocurrency trading contributed to 73% of the company’s overall commissions, higher than the 7% in 2020’s same timeframe.
In 2021 the broker listed seven new digital coins to satisfy the client’s demand. That way, its overall token offering stood at 28 cryptos (26 available for US customers). Keep in mind that the crypto ecosystem has over 8,000 digital coins circulating. eToro listed BTC as its first token in 2013. It went on to add Ether and the 2021 trending meme coin, DOGE, in 2017.
Assia declared his aim to add more digital token. For that reason, he highlighted the criteria followed for the tokens’ listing.
Customer Interest
The CEO stated that they focus on users’ interests first. The firm contacts the users regularly to measure the market impulse. With that, the exchange firm prioritizes customer’s interests whenever adding new digital assets. The crypto broker listed SHIB due to the skepticism that surrounded DOGE. With that move, the Shiba Inu token rallied by 50% towards ATH.
Due Diligence
After eToro identifies its possible coins to add, it evaluates the assets closely. The CEO said they try to understand what the crypto projects are all about, conducting a comprehensive research. The exchange’s team checks the assets’ developments, purpose, management, community involvement, functionality, and public statements concerning the tokens.
Volumes and Liquidity
Also, eToro ensures that the assets have adequate liquidity to allow users to trade continuously without interruptions. Liquidity translates to how easy the users can convert the crypto into cash. Lower liquidity can mean increased market volatility, translating to wild swings in the crypto space. The CEO declared that the tokens need sufficient volume and liquidity to attract eToro
Oversight and Review
Finally, the executive said eToro has a framework to evaluate and review a crypto project before adding it to its investment site or the professional cryptocurrency exchange.
What are your views on eToro’s procedure of listing new tokens? Feel free to share your opinions below.
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