Automated Listings: Natural Market Adjustment vs Universal Framework/Guidelines for Investing in Projects and Creating New Derivatives Markets
One of the Switcheo Tradehub’s features is automated listings.
This is a great way to even the playing field and do away with gatekeepers who usually charge large sums of money for listing. However, now the responsibility falls on the investors to carefully assess the listed projects before investing in them.
So, do we naturally allow for less useful projects to fade out or can the community kill these types of projects early on by having a set of guidelines that users can fall back on to independently access the potential and usefulness of the projects listed?
Also, when it comes to derivatives markets, futures contracts need to be well constructed as improperly assessed risk exposure and daily limits could lead to catastrophic losses.
If financial markets can be created by anyone, how do we then create a useful universal framework for the creation of futures markets that have well-defined risk parameters and resilient underlying?
We need to educate people so that they have greater capacity to evaluate projects and their tokens.
We need to inform about the risks, provide information about the projects, such as links to the communication channels, official websites, repositories, audits and any information that can educate about the listed projects.