To the above are forced to use the crypto currency exchange after the price of the cryptocurrency market fell on average by 50%. When the volume of trading in the digital currency fell, some of the largest kryptomere have to resort to unorthodox practices to increase revenue and gain rating in the market.
Bitfinex, FCoin and OKex creating startups to attract investors to their platform through online trading to get a bigger turnover. Other exchanges such as Binance and KuCoin use of the listing payments that may vary in each project. Many exchanges also produce their own “local” tokens which are then used by traders to vote for potential candidates for listing.
This practice differs from that used in traditional exchanges, which charge a lower fixed rate and do not require issuers admission fees to the exchange. Some exchanges do not conduct even a survey of its users, which of the tokens to start trading.
The search for new ways to generate income
According to CoinMarketCap, the volume of trading on cryptomeria fell 80% from the January peak.
“The market decline certainly contributed to the increase in unorthodox strategies among cripture,” said Lucas, Nuzzi, Director of technology research Digital Asset Research.
For a variety of projects wishing to obtain listing on the exchanges the way, as the amount of contributions can be very different. Christopher Franco, co-founder of blockchain startup Expanse, said KuCoin requested for listing of their token charge of 50 Bitcoins ($315 000). Expanse refused listing.
“We can pay this amount, but this does not justify the invested funds. Many startups prefer to invest such sums in research, development and marketing,” said Franco.
Representatives KuCoin deny the requirement of 50 BTC payment for the listing, stating that the prices vary depending on startup.
“Pay per listing is not the key factor for the enumeration of tokens of the project and only the project”, — said the representative KuCoin. But what are these key factors, the crypto currency exchange is not reported.
Industry observers have their own opinion
But this practice causes confusion among industry observers, who recommend a fixed fee for all applicants to avoid creating the impression that decisions on listing will depend exclusively on the amount of money that the Issuer is willing to pay.
Representatives of the second largest crypto currency exchange OKex, said on its web site that the candidates with about 50 000 new registered users, 20,000 of which are active even with a single coin of ether in your account, will have the advantage. The fee for listing the crypto currency exchange does not charge, but applicants must meet certain standards.
Bitfinex uses its own tokens for voting among traders for listings and in the last six months have tripled their lists to 270 tokens to compensate for the decline in trading volume.
The crypto currency exchange Binance, which already lists 380 coins, does not have a standard fee, but is willing to consider various proposals, said in a blog.
This practice is fully justified Emin gun Sire, head of cryptogram and smart contracts at Cornell University:
“Too many coins, most of which are of dubious value, so the exchange can and should choose. It is not surprising that they require to a listing of the tokens brought something tangible in exchange.”
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