Major cryptocurrency exchanges have to constantly look for ways to attract more investors to trade within their platforms. Adding new tokens is a good way to reach that goal. We will compare the system of adding new tokens between Coinbase, and Huob’is HADAX. Adding new digital assets can be risky due to security, legal, and market manipulation concerns. Exchanges have to research and be prepared for the addition of a new cryptocurrency to their platform.
HADAX
Huobi Pro currently has a centralised operation mode which audits every token to be listed with strict evaluation standards. Huobi’s goal is to give investors more trading options on their platform which offers 100+ digital assets to trade from and offer new token startups the opportunity for their coins to be traded by a large database of investors.
HADAX process is as follows: If a token project shows interest to Huobi for the cryptocurrency to be added to the platform, the Huobi team will audit the token and check capabilities and security risks. After the audit stage, the token is reviewed by the Super Voting Nodes, a professional investment organization to check the quality of future tokens, and if it’s approved then the Huobi users who are certified will vote.
1 vote costs 0.1 HT. Each user can cast 100,000 votes maximum. Two are components are taking into account for the voting stage: 70% of the overall score will be from voting and 30% from a security deposit from the token startup. The top two projects with the highest score will be listed in HADAX .
The latest cryptocurrency added to HADAX was DATx .
Coinbase
Coinbase has a more conservative approach when it comes to adding new tokens to its platform. So far, only Bitcoin, Ethereum, Litecoin and recently Bitcoin Cash are supported by the American exchange as well as Gdax. Coinbase has had issues in the past when it added Bitcoin Cash due that prices increased by 300% in a matter of hours, and insider claims were set against the company. Brian Armstrong, CEO of Coinbase has indicated that more tokens will be added to its platform in 2018, but precautions will have to be taken beforehand.
With the announcement that the platform will support ERC20 tokens , we can expect more cryptocurrencies to be supported in a near future. Coinbase firsts makes the internal asset selection committee propose a cryptocurrency which conducts a legal and risk assessment of the proposed asset. If everything is passed, the engineers start working on the proposal, and after the executives decide on the new addition an announcement is made on their platforms.
Which platform do you use to trade your digital assets?