Asset Integration Program #1

Within the next paragraphs, we will highlight our thinking about what kind of assets should be included on our exchange. We will try to make it clear and fair for everyone involved, explaining what decisions we are making and why.

Looking back

When we started out this project, we knew why we should do it. It was obvious for us. We had the expert view on the problem, but we were also being affected by the problem itself. You may say we know both sides of the story.

Most of us have been following the crypto scene for quite a while and we came to the conclusion that we don’t want to be yet another crypto exchange. There’s a lot of them and that’s not what the community needs. Thus, we want to merge the transparency that crypto’s have with the regulation it deserves.

So, when we started discussing how we should do it, it was even clearer! We believe in a crypto community that aims for transparency, that is taken seriously because it also addresses the arising issues seriously.

Eucoin Asset Program

Within the next days we are going to launch the Eucoin Asset Program. Roughly speaking, it consists in two main points:

  • Make it clear for everyone involved what the rules are (today’s post).
  • Announce the first assets to be part of the program.

Let us say that we are not starting from scratch. Most of ours requirements are based on GDAX’s Digital Asset Framework. We believe their framework, although not perfect, it’s the keystone for a fair market.

Security Requirements

Assets should have their network secured using cryptographic techniques. Prior attacks and/or problems will be looked at and may be a strong reason of rejection.

Are there bug hunting programs? Third-party security audits? How is the security, “testability” and quality assured?

We will take security requirements very seriously. Because of that, no assets in alpha or beta stages will be accepted.

Infrastructure Requirements

We will only accept an asset whose underlying blockchain is a scalable globally-distributed network that is able to handle a consistent amount of traffic and propagate the transactions to the network.

The asset network needs to be operational and must have a test network that will be used for testing and integration purposes.

We will prefer assets whose teams are open and available to collaborate with us in the asset’s integration into our platform.

Economic Requirements

There are two words that are the motto of crypto: immutability and decentralization. But decentralization comes with a cost: responsibility. Responsibility means that, as a community, good behavior is rewarded and bad one is censured. Thus, we will evaluate how the asset is structured in order guarantee that all parties act in the best interest of the network.

Let us say a few words about another important point: liquidity. We’ll evaluate if the asset is being traded in another exchanges, which pairs exist and what’s the trading volume. If a significant price adjustment is required to facilitate, for instance, a sell order, then the market is not liquid.

Other important questions: How did the number of asset holders evolved over time? How many are them?

Still, the asset must solve a demand issue and provide a distinct set of features and its supply should be known, statistically defined and accessible by everyone.

Legal Requirements

Having a fully regulated, transparent, exchange takes time, effort and cooperation between authorities and Eucoin. This is a process that we already started, but it needs more time to allow us to correctly address all the issues.

Because of that, as it is now, any asset that fails to provide information asked by regulators will be automatically dismissed from the program.

Team & Roadmap

We will evaluate how supportive is the asset’s team. Do they work on the project full-time? Are they responsive regarding issues? How strong/influencer is their leader?

How do they communicate with the community? Do they take community concerns seriously? Is the asset a fork? Has the asset been forked? Why?

Looking forward

These are the main guidelines for the assets that will integrate our exchange. We invite you to read the full document and address your concerns using our Twitter, Reddit or e-mail. More than Eucoin’s guidelines, we want this to be the guidelines of our community!