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FCoin, based in China – a new exchange crypt launched in May that takes a new revenue model – has entered the spotlight after its trading volumes seem to have almost immediately surpassed some of the larger exchanges.
While the platform trading data is not currently visible on third-party sites worthy of note such as CoinMarketCap, a similar service in China indicates that FCoin has seen a trading volume of over $ 5.6 billion in the last 24 hours – more of the sum of the top 10 platforms on CoinMarketCap.
A seemingly positive contribution to this volume of spiking is the new service business model, called "mining trans-fees", which is seen as controversial by the Chinese cryptocurrency media and has also been criticized by Binance, one of the largest stock exchanges in the world. world.
Founded by Zhang Jian, former chief technology officer of Huobi, FCoin presents a new business model that effectively transforms cryptocurrency trading into mining activities, as it provides a means of obtaining FT tokens issued by FCoin.
According to the platform white paper, the total amount of FT is limited to 10 billion, 51% of which will be for the public and 49% will be held by FCoin and its investors.
But instead of adopting an initial coin offering or an air launch, FCoin is issuing 51 percent of the tokens to the public in exchange for trading on the exchange. For example, for each transaction fee that a user pays to FCoin in the form of bitcoin or ethereum, the platform will reimburse the user 100 percent of the value in FTs.
In addition, says FCoin, for all the bitcoins and etheeums they collect daily in transaction fees, they will distribute 80 percent in bitcoins to users who keep their FTs continuously throughout the day.
However, within a month of FCoin's debut, several media in the Chinese crypto community have raised doubts that traders are simply using bots to send fake transactions to receive FT coins. Zhang denied the accusation, claiming that all commercial transactions are genuine.
Binance's founder and CEO, Zhao Changpeng, also criticized the platform, claiming that "paid mining" is just another form of ICO.
He wrote on his Weibo account on Wednesday:
"You pay the transaction fees to the platform with BTC and ETH, so the platform returns you 100% with your token.There is not only the purchase of platform tokens with BTC and ETH? Com & # 39; it is different from a ICO? "
Zhao went on, accusing the company of, in effect, of earning money through price manipulation:
"If an exchange does not get revenue from transaction fees and only profits from the price of its token How would it survive without manipulating the symbolic price? Are you sure you want to play against a price manipulator? The same price manipulator that controls the trading platform ? "
In another post on Thursday, Zhao further commented FCoin's revenue distribution method, comparing it to the interest in bitcoin form to users who hold FT tokens.
"It may seem tempting for you to hold the token and let other people who trade on FCoin generate a dividend for you, but in the long run, who would be stupid enough to keep doing trades?" He said.
But, in particular, OKEx, the Hong Kong-based crypto-cryptography platform launched by OKCoin, today announced that it is launching a program that will help 100 new cryptographic exchanges to adopt the paid transfer model.
Pressing OK 000 500,000, the token issued by the OKEx exchange, the OKEx partners will receive technical support from the platform at the time of the launch of an exchange using the new concept, says the company.
Then, on Thursday, in a move perhaps aimed at ridiculing OKEx and FCoin, Binance made an apparently sarcastic announcement that he is going to work with 1,000 teams to open 1,000 new trading platforms that adopt the same mining model.
Commenting on the plan, He Yi, co-founder of Binance, said:
"Now that people love the reimbursement of shipping costs, how about paying 200 percent? An exchange is not enough, let's do it a thousand.The users have different needs, so now we provide different choices."
At the time of the press, FT's price, which at the moment can only be traded on the FCoin platform, has seen a decline of 16% to $ 0.427 in the last 24 hours, reflecting a 65% decline from the recent high to $ 1, 25 of 13 June.
FCoin could not be reached for comment.
Tomato image through Shutterstock
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