Key Takeaways
- Crypto projects reportedly paid millions to get listed on South Korea’s top exchanges.
- At least two projects allegedly paid $10 million to Upbit and $2 million to Bithumb.
- Upbit denies the claims, stating its listing process is independent and comprehensive.
Getting listed on South Korea’s leading crypto exchanges has become an expensive endeavor, with reports emerging that some projects have paid millions in intermediary fees to secure a spot on platforms like Upbit and Bithumb.
South Korea is known for its stringent regulatory approval process, subjecting exchanges to regular inspections to maintain high standards.
However, the latest claims suggest that some projects may be resorting to hefty payments to fast-track their listings behind the scenes.
Crypto Projects Paying Millions for Listings
According to a report from Colin Wu, at least two crypto projects paid approximately $10 million and $2 million to get listed on Upbit and Bithumb, respectively.
Additionally, some projects reported being charged intermediary fees ranging from 3% to 5% of their total token supply to secure a listing on Upbit.
The report clarifies that not every project paid these fees. Out of the seven projects Wu contacted, three claimed they did not pay any intermediary charges.
Upbit has denied these allegations, emphasizing that its evaluation process for new listings is comprehensive and does not require financial compensation from projects.
The Broader Issue of Exchange Listing Fees
The issue of hefty listing fees is not unique to South Korea. In the past year, major crypto exchanges like Binance and Coinbase have also faced accusations of charging projects high fees for listings.
Both Binance and Coinbase have denied such claims, arguing that any required funding is not a direct listing fee but rather a security lockup to support listed projects.
Upbit has also pushed back against the allegations, urging the source of the claims to disclose the names of the companies that allegedly paid such fees.
“Upbit does not allow the involvement of external agencies to assist or intermediate trading support, and all procedures are conducted directly by Upbit employees. If a specific company or individual demands intermediary fees while claiming to guarantee trading support from Upbit, please be advised that this is the act of illegal brokers unrelated to Upbit,” the company wrote.
While crypto exchanges insist that token listings are driven primarily by market demand, the recent surge in memecoin listings has put those claims under scrutiny.
In response to growing concerns, Binance has introduced a community vote-based listing and delisting process, aiming to increase transparency and fairness in token selections.
Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
His coverage spans major industry events, including the high-profile collapses of FTX, Three Arrows Capital (3AC), and LUNA, offering readers insightful analyses of their regulatory and market implications. Prashant’s technical background enables him to bridge the gap between intricate blockchain technology and its real-world applications, making his work accessible to novices and experts.
Beyond his professional pursuits, Prashant is an avid music enthusiast, often exploring diverse genres to unwind. A sports lover, he has a particular passion for cricket and frequently engages in discussions about the game. His multifaceted interests and sharp journalistic instincts make him a valuable contributor to CCN, where he continues shaping the crypto landscape's narrative.
