South Korean cryptocurrency trade Upbit has denied allegations that it costs brokerage charges for token listings, calling on Wu Blockchain to supply proof.
The trade emphasised that every one buying and selling help choices endure a strict inner assessment course of with out monetary compensation. Upbit additionally warned customers to be cautious of fraudulent intermediaries and acknowledged it will take authorized motion towards unlawful brokers.
In different phrases, Upbit claims that its listings are based mostly on inner evaluations fairly than monetary offers. The corporate insists that token initiatives can not merely purchase their manner onto the platform.
Itemizing charges
The controversy follows a collection of tweets from Wu Blockchain, which claimed that a number of initiatives paid charges to intermediaries to safe listings on Upbit and rival trade Bithumb.
In line with Wu Blockchain’s submit, middleman charges had been reportedly round $10 million for Upbit and $2 million for Bithumb, with some intermediaries allegedly related to Upbit’s shareholders and market makers.
The report additionally urged that some initiatives offered middleman charges starting from 3% to five% of their whole token provide. This means that as an alternative of paying a hard and fast payment, some initiatives is likely to be providing a portion of their tokens to safe an inventory.
Wu Blockchain reached out to seven initiatives, with three denying any involvement in such funds.
After Upbit’s response, Wu Blockchain up to date its posts and stated it “wants to guard the supply, so we can not disclose particular info.”