The transaction or "trade mining" is the last form of rewards exchanges have provided to their clients – a form of reimbursement in which a customer earns (mines) the native token of the exchange purely by placing exchanges. Brave New Coin has abandoned the exchanges involved in this potentially manipulative volume practice from the weighted price for the exchange of major pairs, including BTC / USDT, ETH / USDT, EOS / USDT, BCH / USDT. The exchanges are all relatively minor players in the sector, FCoin, CoinBene, CoinEx and BigOne.
Incentives or manipulative?
Native exchange tokens are not new, KuCoin, Coss, Cryptopia all use a module although the most important exponent is Binance's BNB currency which entitles traders to discounts on their transaction fees if used as a a form of payment for taxes.
Incentives for trade and traders in these examples are quite clear, a native token that appreciates decreases customer costs and provides a buffer of liquidity to the market, but so-called foreign trade currencies have been blamed as one a form of wash trading to attract customers to the exchange through the recall of a freebie that artificially inflates the volume of the exchange as there is no intrinsic use of the token.
The Singapore-based Singapore-based exchange FCoin says it has pioneered the practice it has been adopted by other industry minnows like Coinbene, BigOne and CoinEx, and everyone has seen a huge increase in trading volume. Shortly after BigOne announced the "trade-mining" discount offer of its ONE token (apparently created exclusively for that purpose) BigOne became the largest volume exchange for BTC / USDT, comprising 30% of that market and 20% of the entire BTC market.
This month its 24-hour BTC / USDT volume peaked at an absurd 250,000. A month ago, before offering "expense reimbursements", its daily volume was 4 BTC / USDT.
The abrupt and unexpected accelerations of the volume can be seen from the graph that is atypical of the activity of human negotiation as it perfectly guesses the announcement of the exchange of the suspension and the resumption of the offer "trade- mining ", which was limited to 5 major trading pairs: BTC / USDT, ETH / USDT, EOS / USDT, BCH / USDT, ONE / USDT.
FCoin has been devalued for questionable business practices in what essentially equates to washing trading. The exchange also managed to clog up the Ethereum network by asking users to vote for the addition of a new currency – similar to the Binance currency of the month's vote – but instead of conducting the vote on internal servers it was spammed through the Entire Ethereum network, slowing transaction times and increasing ERC20 token gas commissions in all stock exchanges
The average transaction fee has gone from 20c at around $ 5 and Vitalik Buterin gave an ironic demonstration of his feelings on Twitter.
Jump on the bandwagon
The washing trade is a real concern in the cryptographic markets and this type of commercial discount offers to the advised traders the suspicious activity of the Fcoin order backlog related to the Fcoin – Tether USD pair (FTUSDT). Prominent levels of bottling were noted by traders in the rapid change of opening and closing orders on the exchange and was even compared to a Ponzi scheme as most of the coins promised a form of dividend payment to the holder. FCoin stands out in this sense, promising to redistribute 80% of revenues to FT owners, while only 20% is held for the costs of development and operation of the platform.
This concern for price manipulation did not prevent other exchanges from issuing their exchanged coins Coinbene, another Singapore-based stock exchange, went stronger than FCoin by offering users one discount of 130% on their exchanges with the currency equivalent of CONI in return, pleading for customers to get into action: "The sooner the better, the activity will end automatically while (sic) CONES will run out. "
Another CoinEx Asian Exchange announced a similar offer:
Whether it's a Ponzi scheme or of PR strategies, the transnulled currencies are distributed in a style not unlike the model network marketing (formerly known as pyramid marketing) used by many health supplement companies, where the first coin holders could benefit from the # 39; cumulative deal of new customers through the redistribution of revenue.
Airdrops are the traditional mechanism for network distribution that can happen to an ICO of brand loyalty or, sometimes, as in the case of these transnitrated currencies, bypass the ICO process to spread the token faster and more widely .
There are two ways in which tokens are thrown. One is where they are left in the wallets of holders of a certain currency, usually one of the majors, without the recipient having to do anything, and secondly it is announced where the recipient may be required to complete certain tasks or enroll for the purpose. airdrop – otherwise known as a size. Airdrops can also derive from a hard-fork, the most famous was when Bitcoin Cash was delivered to Bitcoin owners. EOS had more than 10 launches from its ICO.
Exchanges have the ability to accept or reject coin tosses from customers who hold in their wallets and usually support them. While there are always projects to keep an eye on, sites like airdropaddict and airdropalert.com are useful for tracking interesting flight opportunities.