The birth and growth of a blockchain project is often accompanied by the development of its underlying technology and the introduction of tokens. However, before the project goes public, the tokens need to be promoted and made available to the public. Without the help of exchanges, tokens are like fish out of the water. Today, we will discuss one such exchange that is revolutionising competitive cryptocurrency exchange space, called BitMax.io.
Types of Exchanges
There are currently thousands of exchanges in the market in varying sizes. BigBox and OTCBTC are examples of small exchanges, while Binance and Huobi are leading the pack at the top. There are also centralized and decentralized exchanges, but in any case, exchanges with better infrastructure and trading services tend to have higher transaction volume, attract more user traffic which is called “liquidity” in the exchange trading space, and create more hype. With the best ecosystems, these top tier exchanges draw the largest crowds in the industry, and new exchanges are offering “transaction mining” in order to attract and aggregate liquidity and beat the competition.
BitMax.io Ingenious mining model design improving beyond FCoin
- FCoin’s token economy was flawed
Everyone is familiar with the popular transaction mining model from FCoin. The model works like this: by trading you are essentially mining exchange platform tokens and holding such token earns you dividend returns from the platform’s income. In order to draw attention, the initial return rate for FCoin was set very high. For example, purchasing 20,000 RMB worth of FT [FCoin’s token] would initially earn you 3,000 RMB in dividend income every day. At this rate, users could easily earn back their principal investment in a short period of time, without factoring in the token price fluctuation. As additional incentive, FCoin subsequently launched the referral reward program to distribute 20% of transaction fee for the referrals. This method of “robbing Peter to offer Paul” led to the collapse of the exchange as users took advantage of loopholes to earn additional rewards.
The FCoin mining model opened the flood gate to release the platform tokens by increasing trading activities. However, just like any country that prints too much currency, this process was not sustainable in the long-term. Country central banks maintain monetary stability and liquidity through reserve requirements, open market operations, etc. For FCoin, the release of large amounts of tokens without a mechanism to stabilize the token value and manage token supply and demand would result in sudden depreciation in value. FCoin generated demand through trans-fee mining but it ultimately demonstrated unsustainable growth, leading to the collapse in pricing. Those exchanges that follow this model without restriction or remedial measures will eventually meet the same fate.
In summary, we can reach two conclusions: first, trans-fee mining is a good method for incentivizing exchange traffic; second, if no remedial measures are taken to support stability, the ecosystem will be unsustainable and eventually collapse. FCoin was off to a good start, but they did not think through those factors with the potential consequences of their mining mechanism.
2. BitMax.io learns from FCoin’s mistakes
Unlike other platforms that imitate FCoin, BitMax.io’s newly introduced trans-fee mining model is building upon the essence of trans-mining while mitigating the negative aspects of the FCoin model. More importantly, it introduced industry-first “Reverse Mining” model and stabilization measures that will support the pricing and value of its token on the longer-term basis. The result is a robust ecosystem with rich, user-friendly features and trading-focused services that positions BitMax.io as an industry-leading, third generation digital asset trading platform.
Strong capital backing: BitMax.io is funded by all-star investors such as Bitmain, Matrix Partners China, FBG Capital, and Danhua Capital.
Seasoned team led by Wall Street quant veterans: BitMax.io founder Dr. George Cao graduated from the University of Science and Technology of China and the University of Chicago. After receiving his Ph.D., George oversaw quantitative trading and venture capital work at Wall Street Knight Capital and Barclays Bank. Later, he established the quantitative trading fund, Delpha Capital Management, in New York. George personally acted as CEO of this fund where he successfully invested in and incubated several blockchain projects. Other core management members came from top-tier Wall Street institutions such as Deutsche Bank, Barclays Capital, Morgan Stanley, and Goldman Sachs, as well as highly skilled technical leaders with academic credentials from renowned global institutions such as Columbia University, the University of Chicago, and Peking University and other world-famous schools with strong influence and recognition in the financial industry.
A improved mining model with its own growth properties
BTMX, the BitMax.io platform token, has a strict supply of 10 billion, of which 49% [4.9 billion] are pre-distributed and unlocked synchronously with mining, and 51% [5.1 billion] are gradually given back to trading users through the trans-fee mining model. In addition, there are six major measures to support the sustainable and healthy development of the platform:
- Collect from the users, give back to the users – provide value back to trading users through the trans-fee mining model;
2. Industry first “reverse mining” option – this is a separate incentive structure for Maker trades where the platform pays transaction fees at a certain rate and deducts from user’s account the equivalent value of BTMX that the user holds. The BTMX that the user returns as part of reverse mining is subject to permanent lock-up and is not involved in any form of rebate on the platform, in essence permanently removed from the market supply.
3. Mining and cost controls – multiple mining models and consumption mechanisms stimulate the ecosystem and encourage continued, stable development of the platform;
4. Sustainable mining mechanisms – a tiered revenue distribution model makes the yield curve more steady and more sustainable;
5. Inflation mitigation – BTMX will reduced with various benefits related to consumption and those consumed are subjected to permanent lock-up regularly, reducing BTMX market supply;
6. “Price protection” model – after mining has started, the platform will impose mandatory lock-up on large-sell orders to balance the volume of BTMX tokens hitting the secondary markets and maintain stability of the BTMX value in the longer run.
BitMax.io’s innovative mining models and strategic stability measures will help to manage sustainable development of the platform, while providing premium trading services and additional economic return to users.
Learn from the Past and Build Better Future
As a third-generation digital asset trading platform, BitMax.io is well positioned to become a new leader in the cryptocurrency exchange while building upon the successes and failures of top players in the industry. However, just learning from industry peers is not enough. The deep finance and trading expertise from decades of Wall Street experience, the innovation of ground-breaking cryptocurrency trading models such as “Reverse mining”, and the thorough design of stabilization mechanisms and token economics are all critical success factors to the long-term growth of its tokens and what truly sets BitMax.io apart from the rest of the pack in the crowded crypto trading space. We are looking forward to further development of the innovative, transparent, and efficient digital asset trading platform that BitMax.io is looking to offer to the cryptocurrency community.
For more information, follow BitMAX on:
Tron [TRX] energy cost to be reduced from 20 sun to 10 sun
The whole cryptocurrency market has been witnessing a steep downward trend for the past couple of weeks. Even the major cryptocurrency like Bitcoin [BTC], Ethereum [ETH] and XRP, have lost the battle against the ice king. This negative trend has broken down most of the new projects in the market, especially the investors’ sentiments. There are also a few projects and team that are finding it hard to continue their operations because of the bear’s ever-growing presence.
Despite this, Tron [TRX], the tenth-largest cryptocurrency by market cap, continues to make advancements in terms of network development. Justin Sun, the founder and CEO of Tron Foundation presented the second proposal, Proposal 9, has been approved by 2/3rd of the governing body. The proposal is aimed at making the network a developer friendly environment by reducing the energy cost from 20 sun to 10 sun, which, in turn, reduces the cost of smart contact.
At the time of writing, the proposal had received 22 approvals and no disapprovals. The representatives who voted for the proposal includes Justin Sun Tron, Tron Society, BitGuild, Tron One, Lianjinshu, uTorrent, Crypto Guy in ZA, Infinity Stones, Alle Exchange, Tron Alliance, TronWalletMe, Raybo Tron, BitTorrent, Blockchain Org, CryptoChain, Sesameseed, callmeSR, DApp House, Tron Spark, TRX Market, Sky people, and Tron Europe.
The first proposal of the month was related to maximizing the energy limit of the network, which was also aimed at supporting the developers of the ecosystem. The proposal was approved by all 28 Super Representatives of the network. Super Representative are the representatives of the community and validators of the node who are elected by the token holders. These representatives are given the power to vote for the activation of the features of the Tron Virtual Machine, with the focus on the betterment of the entire community.
Earlier today, the CEO of the Foundation spoke about how Tron surpassed Stellar Lumens, the fourth largest cryptocurrency by market cap. He said on Twitter:
@CoinMarketCap, there are 159 trading pairs of #TRON which already surpassed 157 trading pairs of Stellar. #TRX was already listed on more than 100 exchanges, including Crypto/Crypto & Crypto/ Fiat trading pairs”
XRP/USD Technical Analysis: Sideways movement to end as breakout imminent
As the cryptocurrency market switches their allegiance between the bull and the bear, XRP is painted red at the moment. The token is slumped by more than a percent wherein the coin is trading at $0.3 with the market cap of $12.4 billion. The 24-hour trading volume is calculated at $305.8 million.
In the 1-hour price chart, the downtrend is ranging from $0.315 to $0.311 whereas the uptrend is extending from $0.301 to $0.308. A clear possibility of a trend breakout is visible as the prices are packed tightly, ready to explode in either direction.
The Parabolic SAR is bullish on the cryptocurrency as the dots have assembled themselves below the candles to support the bull.
The Aroon indicator is showing a greater strength in the downtrend, which is a bearish sign for XRP. However, it can be observed that the red trend is losing its power and crashing.
The Awesome Oscillator is slightly bullish on the coin as the bars have turned green at present.
In the 1-day timeline, the downtrend is stretching from $0.51 to $0.31 whereas the uptrend has been observed from $0.27 to $0.3. A trend breakout is not visible as of now.
The Klinger Oscillator has made a bullish crossover by the signal line. This indicates that the reading line is traveling in favor of a green trend.
The RSI is extremely bearish on the cryptocurrency as the indicator has crashed to the bottom of the graph. A trend reversal is not expected as well, as the reading has not hit the oversold zone.
In this technical analysis, it is clear that the indicators are giving a mixed sign, advocating for a sideways trend. However, since a trend breakout is predicted in the shorter timeframe, a bullish win might take over the price chart.
Tron [TRX] energy cost to be reduced from 20 sun to 10 sun
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