One of the top three trading platforms in China, BTCC, recently announced relaunching its exchange business with a plan to issue its own tokens.
According to the firm, this new change is up and running with new trading pairs including bitcoin, bitcoin cash, Ethereum and litecoin against the U.S. dollar, as well as crypto-to-crypto trading options.
As part of the new change, the company also presented a framework in which users can be rewarded with points and this can be done by signing up, completing ID verification and trading. Moreover, these points can be later converted into BTCC’s own token, which can also be used as a form of exchange on the BTCC platform.
The only thing we all are waiting on at the moment is the date for the issuance of BTCC’s token, as the company has not yet released a concrete timeline. BTCC also added that the point supply will have a limit, though it has not yet made any decisions however on a hard cap or a ratio for how the points can be transferred into its token in the future.
In spite of the fact that the firm moved its headquarters to Hong Kong and kept up a crypto-to-crypto platform called DAX, that offering was additionally suspended in December. In the meantime, BTCC’s regional rivals, for example, Huobi and OKCoin effectively turned to crypto-to-crypto platforms and rejoined the positions of the world’s biggest trades by exchanging volume.
BTCC’s better approach for compensating dealers likewise, came into the picture when a new revenue model called “trans-fee mining” rose among Chinese crypto exchanges. The framework repays clients’ exchange fees with a platform’s own tokens – a model that appears to look like BTCC to some degree, except that its tokens must be reclaimed at a later platform.
Aaron Choi, BTCC’s vice president of international business made statements that since BTCC will have zero trading fees in the first three months after the relaunch, its model is more of a giveaway rather than mining at the beginning.
“The (trans-fee mining) model draws a lot of attention at the moment. … But there’s still a business risk so our management is reviewing this model, how it can be sustained in a long term. So giving away points for trading that can be converted into our token in the future is what we think makes sense for now,” he stated.
At this moment, BTCC has broadened its business to three principal regions: the trade, a mining pool, and its Mobi wallet. The organization was acquired by a Hong Kong-based blockchain capital firm in January 2018.