South Korea’s top cryptocurrency exchanges, Upbit and Bithumb, are facing serious allegations regarding their token listing fees, which reportedly range from $2 million to $10 million per project.
According to industry reports, project owners seeking to list their tokens must pay hefty intermediary fees to secure a spot on these exchanges.
Furthermore, some projects allege that Upbit demands an additional allocation of 3% to 5% of the total token supply in exchange for a successful listing.
These intermediaries, reportedly connected to Upbit’s shareholders or market makers, have raised concerns about transparency and potential conflicts of interest within South Korea’s crypto exchange ecosystem.
Mixed Reports on Listing Fees Spark Debate Over Fairness
While multiple sources confirm the existence of these high listing fees, there are inconsistencies in how they are applied.
Out of seven crypto projects consulted, three stated that they did not pay any listing fees, contradicting claims that these charges are mandatory.
The disparity suggests that listing fees may not be standardized and could depend on negotiations, existing relationships with intermediaries, or the nature of the project itself.
Such inconsistencies have fueled debates over the fairness of South Korea’s token listing processes, with critics arguing that some projects may be unfairly subjected to higher costs while others are granted free or reduced-fee listings.
Risk of Fraud in the Token Listing Process
Compounding the controversy, there are growing concerns over fraud within the token listing process.
Some industry insiders warn that projects relying on intermediaries face a significant risk of being scammed.
Certain intermediaries, who claim to have connections with exchange insiders, allegedly demand large upfront payments without guaranteeing a successful listing.
The recent development creates a risky environment for smaller or newer projects that may be desperate for exposure.
The lack of a clear, standardized listing procedure further enables unethical practices, leaving project teams vulnerable to exploitation and financial losses.
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South Korea’s Listing Fees Differ From Global Standards
The high token listing fees in South Korea contrast sharply with practices in other major crypto markets, particularly in the United States.
Unlike Upbit and Bithumb, leading U.S. exchanges generally do not require direct payments or token allocations for listings.
Instead, they assess projects based on predefined criteria such as legitimacy, security, and regulatory compliance.
The disparity underscores the need for South Korean exchanges to adopt clearer and more transparent listing policies.
Without reforms, these high fees and opaque listing processes could deter legitimate projects from entering the South Korean market, ultimately harming investors and the broader crypto ecosystem.
Recent Developments in Crypto Exchange Listing Fees
The controversy surrounding listing fees is not limited to South Korea.
Recently, Tron founder Justin Sun revealed that Coinbase allegedly demanded an $80 million payment and a $250 million deposit for a token listing, contradicting CEO Brian Armstrong’s previous claims of free listings.
The revelation has reignited concerns over hidden listing fees among global exchanges.
Meanwhile, MEXC, a global crypto exchange, has been recognized for its rapid and high-volume token listings, boasting the highest conversion success rate (82.46%) for memecoins.
These contrasting developments highlight the ongoing debate over transparency, fairness, and accessibility in crypto exchange listing policies worldwide.
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